Citi Trends swings to profit third quarter, beats Street

Savannah, Ga. Value apparel retailer Citi Trends reported Tuesday net income of $606,000 for the quarter ended Oct. 31, compared with a loss of $687,000 in the year-ago period.

Third-quarter sales increased 21.4% to $127.4 million; Comparable-store sales increased 6.3%.

The performance beat Wall Street expectations, which expected sales of $121 million.

The company said sales and earnings in this year’s third quarter benefited from a strong back-to-school season and a favorable comparison to last year’s third quarter, which was impacted by less discretionary spending.

Citi Trends opened 22 new stores during the quarter and expanded five, resulting in a total store count of 392 at the end of the quarter.