Citi Trends Sales Under Pressure - Analyst Blog
Through strong relationships with its suppliers,
Citi Trends, Inc.? (
CTRN) seeks to provide nationally recognized branded merchandise at 20% to 60% discounts to department and specialty store prices. Citi Trends stores are typically located in neighborhood strip malls that are convenient to low and moderate income consumers.
Citi Trends reported a loss of $0.05 per share, which was above management's recently-lowered guidance of -$0.09 to -$0.13 and our estimate of -$0.11. The company also updated its full-year guidance and expects to earn $0.95-$1.05 per share in fiscal 2008.
Due to the upside in the third quarter, we are increasing our 2008 EPS estimate from $0.94 to $1.01. However, we expect the company's sales trends to remain under pressure as we head into 2009.
As a result, we are lowering our sales and earnings estimates for 2009. Specifically, our 2009 EPS estimate goes from $1.01 to $0.93. We maintain our Hold rating.
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