Citi Trends (CTRN) reported Q2 EPS of $0.31, $0.21 better than the analyst estimate of $0.10. Revenue for the quarter came in at $185 million versus the consensus estimate of $199.5 million.
GUIDANCE:
The Company is providing the following updated guidance for 2022, which includes the impact of the sale-leaseback of the Roland distribution center:
- Expects low single digit increase in second half total sales compared to first half total sales; for the full year this represents an 8% to 10% decline from the mid-point of previous guidance of $870 million
- Expects gross margin to remain in the high 30s to low 40s range for the second half
- Expects significantly less SG&A expense deleverage in the second half vs. the same period in the prior year as a result of swift expense reduction actions net of incremental lease expense from the sale-leaseback transactions
- Expects second half operating income to be approximately in line with the second half of 2019
- Expects year-end cash balance of approximately $85 million to $100 million