Value-priced fashion retailer Citi Trends Inc on Wednesday (29 August) reported a 50.8% slump in second quarter profit and lowered its earnings guidance for the fiscal year.

For the three months to 4 August, net income dropped to $627,000 from $1.276m in the prior year quarter. Net income per diluted share fell to $0.04 from $0.09.

Total sales increased 26.9% to $96.8m in the quarter, compared with $76.3m last time. Same-store sales increased 3.4% on a comparable store, comparable week basis.

For the six month period, net income fell 22% to $6.349m, or $0.45 per diluted share, from $8.17m, or $0.58 per diluted share, in the prior year period. Total net sales increased 21.1% in the first half to $203.4m from $168.0m, and same-store sales rose 1.9%.

The company is lowering its estimate of 2007 earnings to a range of $1.40 to $1.44 per diluted share.

Citi Trends operates 300 stores located in 18 states in the Southeast, Mid-Atlantic and Midwest regions and the state of Texas.