CTRN - Citi Trends GAAP EPS of -$0.31 misses by $0.38 revenue of $185.01M misses by $14.58M revises FY guidance

• Citi Trends press release ( NASDAQ: CTRN ): Q2 GAAP EPS of -$0.31 misses by $0.38 .
• Revenue of $185.01M (-22.0% Y/Y) misses by $14.58M .

• Comparable sales decreased 24.9% vs. 25.6% increase in Q2 2021 vs. Q2 2019; 3 year stack of 0.7%

• Gross margin of 38.1% vs. 40.8% in Q2 2021 and 37.3% in Q2 2019

• Guidance:

• The Company is providing the following updated guidance for 2022, which includes the impact of the sale-leaseback of the Roland distribution center:

• Expects low single digit increase in second half total sales compared to first half total sales; for the full year this represents an 8% to 10% decline from the mid-point of previous guidance of $870 million

• Expects gross margin to remain in the high 30s to low 40s range for the second half

• Expects significantly less SG&A expense deleverage in the second half vs. the same period in the prior year as a result of swift expense reduction actions net of incremental lease expense from the sale-leaseback transactions

• Expects second half operating income to be approximately in line with the second half of 2019

• Expects year-end cash balance of approximately $85 million to $100 million
• Shares -4.35% PM.

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