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Citi Trends, Inc., (CTRN) a leading retailer of urban fashion apparel and accessories, released its financial statements for the first quarter of 2023. The company reported a net loss of $6.6 million during the quarter, reflecting the challenging market conditions and the impact of the ongoing COVID-19 pandemic. Additionally, the company's revenue for the quarter decreased to $179.7 million compared to $208.2 million in the same period last year.
Financial Statements:
Citi Trends, Inc. - Condensed Consolidated Balance Sheets (Unaudited)
The condensed consolidated balance sheets of Citi Trends, Inc. highlight the company's financial position as of April 29, 2023, and January 28, 2023. The current assets totaled $219.1 million, including cash and cash equivalents of $88.7 million, inventory valued at $114.3 million, and prepaid and other current assets of $13.9 million. The company's total assets amounted to $534.4 million.
On the liabilities side, current liabilities stood at $162.2 million, including accounts payable of $90 million and operating lease liabilities. The noncurrent operating lease liabilities were $209.6 million, and other long-term liabilities amounted to $2.7 million. The total liabilities for the company were reported at $374.5 million.
Citi Trends, Inc. - Condensed Consolidated Statements of Operations (Unaudited)
The condensed consolidated statements of operations for the thirteen weeks ended April 29, 2023, and April 30, 2022, present the company's net sales and expenses. Net sales for the first quarter of 2023 amounted to $179.7 million, compared to $208.2 million in the same period last year. The cost of sales was $113.7 million, resulting in a gross profit of $66 million.
Selling, general, and administrative expenses amounted to $70.8 million, and depreciation expenses were $4.7 million. The company also recorded a gain on sale-leaseback of $34.9 million. As a result, the company reported a loss from operations of $9.5 million.
After accounting for interest income, interest expense, and income taxes, Citi Trends reported a net loss of $6.6 million for the quarter, compared to a net income of $30.2 million in the first quarter of 2022.
Financial Performance Analysis:
Citi Trends experienced a decline in revenue during the first quarter of 2023. The decrease from $208.2 million to $179.7 million can be attributed to various factors, including the ongoing challenges posed by the COVID-19 pandemic, supply chain disruptions, and changing consumer behavior.
The net loss of $6.6 million in the first quarter of 2023 reflects the impact of lower sales and increased expenses. The company has been navigating a highly competitive retail landscape, dealing with rising costs, and adjusting its operations to align with changing market dynamics.
Future Outlook:
Citi Trends remains committed to its long-term growth strategies, focusing on enhancing its product offerings, optimizing its store footprint, and expanding its digital capabilities. The company aims to improve its operational efficiency and profitability while adapting to evolving consumer trends.
As the effects of the pandemic continue to unfold, Citi Trends is closely monitoring market conditions and implementing appropriate measures to mitigate risks and capitalize on emerging opportunities. The company remains dedicated to providing affordable fashion choices to its customers and delivering long-term value to its shareholders.
Despite the challenges faced in the first quarter of 2023, Citi Trends remains optimistic about the future and is actively working to position itself for sustainable growth and success in the retail industry.