Citi Trends Slips To Wider-Than-Expected Loss In Q3, Updates FY23 Outlook

(RTTNews) - Citi Trends, Inc. (CTRN), an apparel and fashion retailer, on Tuesday slipped to loss in the third quarter from profit in the same quarter last year. The loss was wider than expected.

Further, the company updated its EBITDA and sales guidance for fiscal 2023.

Citi Trends reported a quarterly loss of $3.9 million or $0.47 per share compared with earnings of $24.6 million or $3.02 per share, last year.

Excluding items, the firm reported loss of $0.56 per share compared with earnings of $0.24 per share in the previous year.

On average, four analysts polled by Thomson Reuters had expected a loss of 0.17 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue declined 6.7 percent to $179.5 million from $192.32 million in the prior year with comparable sales decreasing by 6.2 percent. The Street view for revenue is $186.03 million.

Looking ahead to the full year, the company now expects EBITDA to be in the range of $1 million to $7 million, lower than the previous guidance of $5 million to $20 million.

Revenue is now expected to be down mid-single digits as compared to fiscal 2022. The previous guidance was expected to be in the range of negative mid-single-digits to negative low single-digits as compared to fiscal 2022. Analysts' revenue estimates were $761.8 million.

On Monday, Citi Trends shares closed at $26.39, down 0.19% on the Nasdaq.