The 10-second takeaway
For the quarter ended April 28 (Q1), Citi Trends met expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Citi Trends reported revenue of $197.7 million. The five analysts polled by S&P Capital IQ expected revenue of $196.0 million on the same basis. GAAP reported sales were 4.5% higher than the prior-year quarter's $189.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.69. The five earnings estimates compiled by S&P Capital IQ predicted $0.46 per share. GAAP EPS of $0.69 for Q1 were 17% lower than the prior-year quarter's $0.83 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.8%, 190 basis points worse than the prior-year quarter. Operating margin was 8.0%, 170 basis points worse than the prior-year quarter. Net margin was 5.1%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $136.5 million. On the bottom line, the average EPS estimate is -$0.44.
Next year's average estimate for revenue is $679.1 million. The average EPS estimate is $0.34.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 230 members out of 269 rating the stock outperform, and 39 members rating it underperform. Among 102 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Citi Trends a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Citi Trends is hold, with an average price target of $11.40.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Citi Trends. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.