US: Citi Trends Q1 profit soars by 52%
Value-priced fashion retailer Citi Trends Inc has managed to lift its first quarter profit by 51.9% helped by higher sales and lower margins.
Net income rose to $7.9m or $0.54 per share, from $5.2m or $0.36 per share in the same quarter last year.
Sales in the three months to 3 May were up 18.3% to $143.1m from $121.0m, and same-store sales increased 7.4%.
The Savannah, Georgia based firm, which operates 365 stores, said earnings were also boosted by lower freight costs, reduce inventory shrinkage, and a higher initial merchandise mark-up.
Looking ahead it raised its full-year earnings estimate to $1.33 per share, with same-store sales expected to increase by 3%.
This week's third quarter figures suggest that US fashion retailers appear to have steadied the ship - at least on the bottom line....
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Action sports retailer Zumiez Inc has posted third quarter net income below that of last year but ahead of its expectations, with net sales slightly down....
Apparel retail group Gap Inc is aiming to build market share this holiday season after posting a 25% gain in third quarter net profit to US$307m....
Women's fashion chain The Cato Corporation has bolstered its third quarter net income amid strong sales and increased margins....
The Wet Seal, a US retailer to young women, saw third quarter net income fall 34%, with same-store sales at its flagship Wet Seal chain slumping 7.8%....
Retailer Hibbett Sports increased its full-year earnings guidance after posting a third quarter profit of US$8.8m, up 14.7% on last year....
Retailer Foot Locker slipped to a third quarter loss of US$6.1m, hurt by $22m of impairment charges linked to write-downs of the company's US operations....
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