(By Balaseshan) Citi Trends Inc. (NASDAQ: CTRN) reported narrower-than-expected loss for the third quarter due to higher sales and comps as well as lower asset impairment charges. Revenue exceeded Street's expectations.
Loss for the third quarter narrowed to $3.7 million or $0.25 per share from $6.76 million or $0.46 per share last year. The last year results included severance costs of $1.2 million in connection with the elimination of 40 positions in corporate offices, distribution centers and store organization.
Sales increased 4.1% to $149.0 million from $143.1 million. Comparable store sales rose 0.5%.
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Analysts, on average, polled by Thomson Reuters had expected a loss of $0.41 per share on revenue of $141.63 million for the third quarter.
Gross margin for the quarter rose to 34.4% from 33.7%.
Cost of sales rose to $97.81 million from $94.91 million, while selling, general and administrative expenses decreased to $51.13 million from $53.06 million.
Depreciation and amortization for the quarter declined to $5.97 million from $6.45 million, while asset impairment dipped to $660,000 from $696,000.
The company opened one store and relocated or expanded two others in the third quarter of 2012, reaching a total store count of 513 at the end of the quarter.
Citi Trends, which is headquartered in Savannah, Georgia, operates as a retailer of urban fashion apparel and accessories in the United States. Its merchandise includes sportswear, dresses, outerwear, footwear, and intimate apparel and accessories, as well as an assortment of home decor items.
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CTRN closed Monday's regular trading up 3.05% at $12.17. The stock has been trading between $7.87 and $16.42 for the past 52 weeks.