• Q3 net loss widened to $6.8m
  • Total sales rose 2.2% to $143.1m
  • Same-store sales slumped 9.3%

Value-priced fashion retailer Citi Trends Inc has blamed falling same-store sales and the resulting clearance markdowns for widening its third-quarter loss.

It also said the quarter was hurt by $1.2m in severance costs as it axed 40 jobs in its corporate offices, distribution centres and stores, and a $0.7m impairment charge related to nine underperforming stores.

Net loss in the three months to 29 October widened to $6.8m or $0.46 per share, from a loss of $0.4m or $0.03 per share, the year before. Total sales at the retailer, which operates 511 stores, rose 2.2% to $143.1m. But same-store sales tumbled 9.3%.