The trend at Citi Trends is profitability

The CEO of Citi Trends says well-managed inventories and improved merchandising helped the company deliver strong sales growth in the second quarter.

“The ladies area delivered a 7% comp increase. We delivered a 17% increase in the home business. We still see even more growth there,"Citi Trends President and CEO Jason Mazzola, who was promoted from CMO in March. "Accessories continue to increase as well. We are positioned to deliver positive same store sales in the third and fourth quarter. We have opened nine stores in the quarter. We remain committed to growing our store base in the future.”

The retailer said total sales in the second quarter ended Aug. 1 increased 6.1% to $153.9 million compared with $145.0 million in the second quarter ended August 2, 2014. Same store sales increased 3.9% in the quarter.

Net income was $200,000, or 1 cent per diluted share, in the second quarter of 2015 compared with a net loss of $2.6 million, or 17 cents per diluted share, in last year’s second quarter.The company also announced that its Board of Directors approved the initiation of a cash dividend payment at an annual rate of 24 cents per share and a share repurchase program of up to $15 million.

“We believe the commencement of cash dividends, coupled with the new share repurchase program, underscores our continued commitment to building shareholder value and reflects our financial strength as well as the Board’s confidence in our business and strong cash flow,” said Mazzola. “At the same time, we remain committed to investments in company growth and other long-term initiatives to enhance shareholder value.”

Citi Trends Inc. is a value-priced retailer of urban fashion apparel and accessories with 518 stores.