Citi Trends Surges

The retailer beats third-quarter earnings targets and raises it guidance.
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Citi Trends

(CTRN) - Get Report

shares surged Friday after the urban-apparel retailer reported better-than-expected earnings and raised it full-year guidance.

The company's third-quarter earnings rose to $2.8 million, or 20 cents a share, from $2.6 million, or 18 cents a share, a year ago. Sales jumped 25% to $87.1 million, while same-store sales increased 6.2%.

Analysts polled by Thomson First Call expected earnings of 16 cents a share and revenue of $84.3 million.

Citi Trends raised its fiscal-year earnings guidance to a range of $1.43 to $1.47 a share, based on a projected same-store sales increase of 7% to 9%. The company had lowered its full-year projection in August to $1.37 to $1.41.

Wall Street expects a full-year profit of $1.41 a share.

For the next fiscal year, the company forecast earnings of $1.73 to $1.77 a share, based on same-store sales growth of 3% and 4%. Analysts, on average, project earnings of $1.72 a share.

In the third quarter, Citi Trends opened 13 stores, bringing its total store count to 266 at the end of the quarter. During the fourth quarter, the company plans to open an additional 10 to 11 stores.

The company, which produces the Phat Farm and Rocawear brands, also said that beginning with the first quarter of fiscal 2007, it will stop reporting monthly sales figures and switch to quarterly sales reporting.

Citi Trends shares recently were trading up $4.46, or 10%, to $47.18.