Citi Trends 1Q profit drops, misses estimates
May 22, 2013 09:00 AM | 1037 views | 0 0 comments | 7 7 recommendations | email to a friend | print
SAVANNAH, Ga. (AP) — Clothing and accessories company Citi Trends said Wednesday that its first-quarter net income dropped 39 percent as cooler weather dampened sales in the beginning of the period.

CEO Ed Anderson said in a statement that sales began to pick up once the weather began to warm up after Easter.

But the overall quarterly performance fell short of Wall Street's expectations.

Citi Trends Inc. earned $6.2 million, or 42 cents per share, for the period ended May 4. That compares with $10.1 million, or 69 cents per share, in the prior-year period.

Analysts surveyed by FactSet, on average, expected earnings of 57 cents per share.

Revenue declined 8 percent to $181.8 million from $197.7 million, missing Wall Street's forecast for revenue of $189.2 million.

Revenue at stores open at least a year fell 4.1 percent. This metric is a key indicator of a retailer's health because it excludes results from stores recently opened or closed.

In February, the figure dropped 7 percent. It was down 8 percent in March, but rose 9 percent in April.

Citi Trends Inc., which is based in Savannah, Ga., currently runs 506 stores in 29 states.

Its shares finished at $12.42 on Tuesday. They have traded in a 52-week range of $9.73 to $16.42.

Copyright 2013 The Associated Press.

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