On March 21, Citi Trends (NASDAQ:CTRN) released fourth-quarter earnings for the period ended Feb. 3.

  • For the full Foolish story, read our earnings take.
  • Revenue increased by 30.9% to $126.8 million, primarily because of an extra week in the quarter, which added $10.1 million of sales.
  • Comparable-store sales rose by 1.3% for the quarter. For 2007, the company forecasts 46-48 new stores to drive continued revenue growth. This should bode well, since the new stores will increase retail selling square footage by about 20%.
  • During the fourth quarter, Tom Stoltz, CFO and senior vice president of finance, resigned from the company.
  • Citi Trends is a two-star stock in Motley Fool CAPS, our free interactive stock database. Fellow clothing competitors Ross Stores (NYSE:ROST) and TJX (NYSE:TJX) have three- and two-star ratings, respectively. The top possible rating is five stars.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$126.8

$96.8

30.9%

Net Profit

$10.4

$7.9

30.9%

EPS

$0.73

$0.55

32.7%

Diluted Shares

14.2

14.4

(1.4%)



Get back to basics with the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

38.4%

38.1%

0.3

Operating Margin

11.8%

11.9%

(0.2)

Net Margin

8.2%

8.2%

0.0

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$77.7

$63.5

22.2%

Accounts Rec.

N/A

N/A

N/A

Inventory

$73.4

$54.0

35.8%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$66.5

$57.7

15.3%

Long-Term Debt

N/A

N/A

N/A



The balance sheet reflects the company's health.

Cash Flow Highlights

Citi Trends must be out shopping for a new outfit, because it forgot to include a cash flow statement.

Free cash flow is a Fool's best friend.

Related Foolishness:

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