CITI TRENDS Reports Q2 FY2024 Earnings Results on July 31 2023
August 24, 2023
🌥️Earnings Overview
On August 22, 2023, CITI TRENDS ($NASDAQ:CTRN) reported their second quarter of FY2024 earnings results, ending on the same day. Total revenue was reported to be USD 173.6 million, a 6.2% decrease from the same quarter last year. Net income amounted to USD -5.0 million, a significant increase from the previous year’s figure of -2.5 million.
Stock Price
On Tuesday, July 31 2023, CITI TRENDS reported its 2nd quarter FY2024 earnings results. Upon the news, the company’s stock opened at $23.8 and closed at $23.2, a rise of 5.1% from its previous closing price of $22.0. This marked a significant rise for the company, whose stock had been performing relatively flat in recent months. Investors were looking forward to this news and have responded positively to the report. This was mainly driven by increase sales of its new products and services.
This is positive news for the company, as it shows that their strategies are paying off. Overall, CITI TRENDS’ Q2 FY2024 earnings report was well-received by investors, and the company’s stock reacted positively as a result. Investors will be eagerly awaiting the company’s next quarterly results to further gauge CITI TRENDS’ financial health. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Citi Trends. More…
| Total Revenues | Net Income | Net Margin |
| 755.03 | 19.56 | -0.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Citi Trends. More…
| Operations | Investing | Financing |
| 11.58 | 60.18 | -12.23 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Citi Trends. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 526.51 | 370.55 | 19.24 |
Key Ratios Snapshot
Some of the financial key ratios for Citi Trends are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.3% | -16.1% | 3.3% |
| FCF Margin | ROE | ROA |
| -0.5% | 9.6% | 2.9% |
Analysis
At GoodWhale, we conducted a deep dive into CITI TRENDS‘s financials and came to the conclusion that CITI TRENDS is classified as an ‘elephant’ company. This means that CITI TRENDS is rich in assets, after deducting off its liabilities. Given its financials, CITI TRENDS has a high health score of 8/10. This indicates that CITI TRENDS is capable to pay off its debt and fund future operations. When it comes to the company’s performance, CITI TRENDS is strong in liquidity, medium in asset, profitability and weak in dividend and growth. Given the health score and performance of CITI TRENDS, it is likely to attract investor interest. Value investors who focus on a company’s intrinsic value will be interested in the company’s assets and liabilities. Meanwhile, growth investors who prioritize the potential for capital appreciation may be interested in the company’s dividend and growth performance. More…
Peers
There is stiff competition among Citi Trends Inc and its competitors PreVu Inc, Buckle Inc, and Vedant Fashions Ltd. All four companies are vying for a share of the market for affordable trendy clothing. Citi Trends Inc has an advantage in that it has over 500 stores in 31 states, while its competitors have fewer stores. However, all four companies are comparable in terms of the quality of their clothing and the prices they charge.
– PreVu Inc ($OTCPK:PRVU)
PreVu Inc is a provider of marketing solutions. The company has a market cap of 159.57k as of 2022 and a return on equity of 20.12%. The company offers a variety of marketing services, including content marketing, social media marketing, and email marketing. The company also provides a variety of tools and resources to help businesses with their marketing needs.
– Buckle Inc ($NYSE:BKE)
Buckle Inc is a leading retailer of apparel and accessories for young men and women in the United States. The company has a market capitalization of 1.77 billion as of 2022 and a return on equity of 55.65%. Buckle Inc operates over 450 stores in 44 states under the Buckle, BKE, and MKL brand names. The company offers a wide variety of clothing, footwear, and accessories for both men and women. Buckle Inc has a strong online presence and offers free shipping on orders over $100. The company is headquartered in Kearney, Nebraska.
– Vedant Fashions Ltd ($BSE:543463)
Vedant Fashions Ltd is an Indian fashion retailer that is based in Mumbai. The company has a market cap of 340.01B as of 2022 and a Return on Equity of 38.43%. The company was founded in 1984 and operates a chain of stores across India. It offers a wide range of products such as clothing, accessories, and home furnishings. The company also has an online store that ships to various international locations.
Summary
CITI TRENDS reported their Q2 FY2024 earnings results on July 31 2023, with total revenue of USD 173.6 million, a 6.2% decrease from the same quarter last year. Net income was reported to be USD -5.0 million, compared to the previous year’s figure of -2.5 million. Despite the decline in revenue and income, the stock price moved up positively on the same day.
This suggests that investors have confidence in CITI TRENDS’ ability to manage their finances despite the current economic climate. Investors should take note of the company’s commitment to cost-cutting and prudent financial management, as it may indicate future positive performance.
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