Citi Trends Inc. has reported a significant net loss in its third quarter, marking a stark departure from its profitability in the same period last year. The retailer posted a net loss of $3.9 million, or $0.47 per share, which was a considerable drop from the previous year's profit of $24.6 million or $3.02 per share. This loss was much deeper than analysts' expectations, with an adjusted loss of $0.56 per share outpacing the forecasted loss of $0.17 per share.
Sales also took a hit, declining 6.7% year-over-year to $179.5 million, falling short of analysts' predictions of $186.03 million. Comparable store sales decreased by 6.2%. This downturn comes as the company also revised its full-year EBITDA outlook to a range of only $1 million to $7 million, signaling a mid-single-digit percentage decrease in annual revenues compared to fiscal year 2022. This updated guidance sharply contrasts with previous company projections and market expectations, which were around $761.8 million for the year.
Following the financial update, Citi Trends saw a marginal decline in its share price on Monday, closing at $26.39 on the NASDAQ. The retailer's stock value had experienced a minor drop of 0.19% from the previous trading day.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.