USA : Citi Trends Back-to-school sales strong during August

Citi Trends Inc reported unaudited sales results for the third quarter of fiscal 2007. Total sales in the 13-week period ended November 3, 2007 increased 14.2% to $99.5 million compared with $87.1 million in the 13-week period ended October 28, 2006. Comparable store sales increased 1.9% on a comparable store, comparable weeks 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 13 weeks ended November 3, 2007 in relation to the thirteen weeks ended November 4, 2006. On a fiscal quarter basis, comparing the 13 weeks ended November 3, 2007 with the 13 weeks ended October 28, 2006, comparable store sales decreased 2.7%.
Back-to-school sales were very strong during August due to a shift of sales from July, resulting from later school openings and tax-free sales holidays this year. However, comparable store sales on a comparable weeks basis were negative in both September and October.
In light of the reported sales results, together with a related increase in clearance markdowns, the Company believes it will recognize a loss for the third quarter of approximately $(0.06) per diluted share. The Company expects to report full financial results for its third quarter and an update to its fiscal 2007 outlook after the market closes on November 26, 2007.