Citi Trends Inc reported results for the fourth quarter and fiscal year ended January 30, 2010.
• Fourth quarter net income increased 11.9% to $11.3 million • Fiscal 2009 net income increased 13.4% to $19.7 million • Fiscal 2010 earnings guidance of approximately $1.60 to $1.65 per share
Financial Highlights – Fourth quarter ended January 30, 2010
Total sales in the fourth quarter ended January 30, 2010 increased 15.8% to $169.8 million compared with $146.6 million in the quarter ended January 31, 2009. Comparable store sales increased 1.2% in the fourth quarter.
Income from operations in the fourth quarter increased 18.4% to $16.8 million in 2009 compared with $14.2 million in 2008. As a percentage of sales, income from operations in the quarter increased to 9.9% in 2009 from 9.7% in 2008. Net income in the fourth quarter of 2009 increased 11.9% to $11.3 million compared with $10.1 million in last year's fourth quarter. Earnings per diluted share increased to $0.78 in the fourth quarter of 2009 compared with $0.69 in the fourth quarter of 2008.
The Company opened 11 stores in the fourth quarter of 2009, reaching a total store count of 403 at the end of the year.
Financial Highlights – Fiscal year ended January 30, 2010
Total sales in the fiscal year ended January 30, 2010 increased 13.0% to $551.9 million compared with $488.2 million in the fiscal year ended January 31, 2009. Comparable store sales increased 0.6% for the full year.
Income from operations increased 27.4% to $29.4 million in 2009 compared with $23.1 million in 2008. As a percentage of sales, income from operations increased to 5.3% in 2009 from 4.7% in 2008. Net income increased 13.4% to $19.7 million in 2009 compared with $17.4 million in the prior year. Earnings per diluted share increased to $1.36 in 2009 compared with $1.20 in 2008. Income from operations increased at a higher rate than net income throughout 2009 due to the effect on net income of a declining interest rate environment which caused a reduction in tax-free interest income and a related increase in the effective income tax rate.
The Company opened 49 stores, relocated or expanded 11 others, and closed 3 stores in 2009.
Fiscal 2010 Outlook – Fiscal year ending January 29, 2011
The Company estimates 2010 earnings of approximately $1.60 to $1.65 per diluted share. This guidance includes an anticipated 2010 comparable store sales increase of approximately 3% to 4%. For the year, the Company expects to increase selling square footage by at least 15%.
Fiscal 2010 is off to a strong start with comparable store sales increasing more than 10% during the first five-plus weeks of the year in addition to a 14% increase during the same period of time last year. The Company attributes the strong sales thus far in the first quarter to be primarily a result of our customers receiving their tax refunds later this year. Additionally, and importantly, our spring merchandise assortment has resonated well with our customers.
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