Why Citi Trends (CTRN) Shares Are Sliding Today - Citi Trends (NASDAQ:CTRN)

Citi Trends Inc CTRN reported a fourth-quarter FY22 sales decline of 13.1% year-on-year to $209.46 million, beating the consensus of $208.75 million.
Adjusted EPS of $0.83 beat the analyst consensus of $0.81. Comparable store sales decreased 14.4% versus last year.
Gross margin of 39.5% fell 90 basis points Y/Y. Operating margin was 3.5%, and operating income for the quarter fell 41.3% to $7.4 million.
Adjusted EBITDA was $12.3 million versus $17.8 million last year.
Quarter-end total inventory decreased 14.6% versus last year. The company held $103.5 million in cash and equivalents as of Dec. 31, 2022.
"Our customers are expected to remain under pressure through the first half of 2023, impacted by ongoing inflationary factors, in addition to the reduction in SNAP benefits and lower tax refunds," said CEO David Makuen.
Outlook: Citi Trends sees Q1 sales to decline by approximately low double digits to mid-teens, with an operating loss in the quarter.
The company sees FY23 sales to be in the range of negative low single-digits to positive low single-digits as compared to fiscal 2022.
It expects FY23 EBITDA of $20 million - $30 million; capital expenditure of $20 million - $25 million.
Price Action: CTRN shares are trading lower by 5.63% at $22.00 in premarket on the last check Tuesday.

Why Citi Trends Shares Are Sliding Today