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Urban fashion apparel retailer Citi Trends posts Q2 sales

09
Aug '07

Citi Trends Inc reported unaudited sales results for the second quarter of fiscal 2007. Total sales for the thirteen-week period ended August 4, 2007, increased 26.8% to $96.8 million compared with $76.3 million for the thirteen-week period ended July 29, 2006. Comparable store sales increased 3.4% on a comparable store, comparable week basis.

Each quarter of fiscal 2007 starts one week later than the same quarter of 2006, due to the Company's 2006 fiscal year having 53 weeks versus the normal 52 weeks. This timing shift can have a significant impact on quarterly sales comparisons.

The measurement of sales in comparable stores for comparable weeks above is based on sales during the thirteen weeks ended August 4, 2007, in relation to the thirteen weeks ended August 5, 2006. On a fiscal quarter basis, comparing the thirteen weeks ended August 4, 2007, with the thirteen weeks ended July 29, 2006, comparable store sales increased 9.4%.

After a strong start to the quarter throughout May and June, comparable store sales trends turned negative in July on a comparable week basis. The negative trend in July appears to be at least partially due to later school openings this year in many states and a related shift in sales tax holidays in Florida and Texas from July to August.

In addition, in the quarter the Company had a lower gross margin and higher expenses than expected. Based on information currently available related to second quarter results,management believes its earnings will be in a range of $0.02 to $0.05 per diluted share, including approximately $0.02 of expense related to a follow-on stock offering.

In addition to reporting its full financial results for the second quarter after the market closes on August 29, 2007, Citi Trends will provide an interim update on August back-to-school sales at that time.

Citi Trends Inc

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