The retailer is on track to expand its store footprint in the short- and long-term despite a post-holiday slowdown in traffic amid surging Covid cases.
The value retailer of apparel, accessories and home goods, primarily for African American and Latinx families, said its total sales for the nine-week holiday period ended 1 January, increased 20.1 per cent to $204.8M. Comparable store sales increased 14.8 per cent. In addition, Citi Trends said it continued to expand its gross margin, driven primarily by higher full-price selling and lower markdowns.
“Following a strong holiday selling period, we have experienced a decline in traffic attributed to macro trends, primarily driven by the increase in Covid-19 cases impacting the broader consumer landscape,” said CEO David Makuen. “Despite the recent decline in traffic, which we believe is transitory in nature, we are experiencing strong conversion rates, indicating that our customers continue to find our assortment compelling. Looking ahead, we remain confident in the long-term trajectory of the business.”
For fiscal 2022, Citi Trends plans to open roughly 45 stores and also remodel 45 stores, all reflecting its upgraded format. The retailer currently operates 602 locations in 33 states.
