Citi Trends Q4 sales down 13.1% YoY; weak FY2023 outlook

Total sales of $795.0 million decreased 19.8% vs. 2021 and increased 1.7% vs. 2019 · Gross margin of 39.1% vs. 41.1% in 2021 and 38.0% in 2019 · Operating income of $75.3 million, or $11.4 million as adjusted*, vs. $79.5 million in 2021 and $18.5 million in 2019, or $20.6 million as adjusted* · Net income of $58.9 million, or $9.4 million as adjusted*, compared to $62.2 million in 2021 and $16.5 million in 2019, or $18.2 million as adjusted* · Adjusted EBITDA* of $32.0 million vs. $99.9 million in 2021 and $39.2 million in 2019 · Diluted EPS of $7.17, or $1.14 as adjusted*, vs. diluted EPS of $6.91 in 2021 and $1.41 in 2019, or $1.56 as adjusted*

Fiscal 2023 Outlook Given the macro-economic environment, the Company expects low income families, the bulk of its customer base, to remain under pressure in the first half of fiscal 2023 (the 53 week period ending February 3, 2024) with gradual relief as the year unfolds. As a result, the Company’s outlook for fiscal 2023 is as follows: · First quarter total sales are expected to decline by approximately low double digits to mid-teens as compared to the first quarter of fiscal 2022, with an operating loss in the quarter · Combined second quarter through fourth quarter improvements will be driven by operational efficiencies, tight SG&A control and a sharpened focus on trend development with ample liquidity to refine assortments · Full year total sales are planned to be in the range of negative low single-digits to positive low single-digits as compared to fiscal 2022 · Full year gross margin to remain in the high thirties driven by continued inventory control and freight management · F

Total sales of $209.5 million decreased 13.1% vs. Q4 2021 and decreased 0.7% vs. Q4 2019; comparable store sales decreased 14.4% compared to Q4 2021 · Gross margin of 39.5% vs. 40.4% in Q4 2021 and 39.7% in Q4 2019 · SG&A expense dollars declined 11.3% vs. Q4 2021 and increased 4.3% vs. Q4 2019; SG&A expenses were 33.7% of sales compared to 33.0% in Q4 2021 and 32.1% in Q4 2019 · Operating income of $7.4 million, or $7.5 million as adjusted*, compared to $12.6 million in Q4 2021 and $11.3 million in Q4 2019, or $11.8 million as adjusted* · Net income of $6.6 million compared to $9.8 million in Q4 2021 and $9.4 million in Q4 2019 · Adjusted EBITDA* of $12.3 million compared to $17.8 million in Q4 2021 and $16.6 million in Q4 2019 · Diluted EPS of $0.81, or $0.83 as adjusted*, vs. diluted EPS of $1.16 in Q4 2021 and diluted EPS of $0.84 in Q4 2019, or $0.88 as adjusted*