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01/10/2022

Citi Trends holiday store sales up 14.8%; opening 45 stores in 2022

Marianne Wilson
Editor-in-Chief
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Citi Trends sees a long-term potential of 1,000 locations.

Citi Trends is on track to expand its store footprint in the short- and long-term despite a post-holiday slowdown in traffic amid surging COVID cases.

The value retailer of apparel, accessories and home goods, primarily for African American and Latinx families, said its total sales for the nine-week holiday period ended Jan. 1, increased 20.1% to $204.8 million. Comparable store sales increased 14.8%.

 In addition, Citi Trends said it continued to expand its gross margin, driven primarily by higher full-price selling and lower markdowns.

“Following a strong holiday selling period, we have experienced a decline in traffic attributed to macro trends, primarily driven by the increase in COVID-19 cases impacting the broader consumer landscape,” said CEO David Makuen. “Despite the recent decline in traffic, which we believe is transitory in nature, we are experiencing strong conversion rates, indicating that our customers continue to find our assortment compelling. Looking ahead, we remain confident in the long-term trajectory of the business.”

For fiscal 2022, Citi Trends plans to open roughly 45 stores and also remodel 45 stores, all reflecting its upgraded format. The retailer currently operates 602 locations in 33 states.

Its long-term strategic plans including growing the fleet at a compound annual growth rate of 8% to 10% for a total potential of over 1,000 locations, and remodeling at least 150 stores by the end of fiscal 2024. It also plans investments in infrastructure improvements with an emphasis on merchandising and supply chain.

Based on the recent disruptions brought on by the surge in COVID-19 cases, Citi Trends now expects its full year 2021 total sales to be in the range of $990.0 million to $995.0 million, which at the midpoint of the range reflects a 26.7% increase over fiscal 2020 and a 26.9% increase over fiscal 2019. Diluted earnings per share is now expected to be in a range of $6.70 to $6.85, compared to $2.32 in fiscal 2020 and $1.41 in fiscal 2019.

Citi Trends, Inc. is a growing specialty value retailer of apparel, accessories and home trends for way less spend primarily for African American and Latinx families in the United States. The company For more information, visit cititrends.com or your local store.