The business is staging a strong comeback from the pandemic as it raises outlook and looks to accelerate store growth.
The value retailer, which specialises in apparel, accessories and home goods primarily for African American and Latinx customers, reported earnings that topped expectations amid an increase in full-price selling, reduced markdown levels and improved inventory turns.
“We had a very strong start to our fiscal year, with record first-quarter results for total sales, gross margin and operating margin, building on our momentum from last year despite the backdrop of the continued pandemic, said David Makuen, CEO, Citi Trends, which operates 584 stores in 33 states.
Citi Trends in on track to open at least 30 stores and remodel approximately 20 locations this year. It plans to open at least 100 new stores, remodel at least 150 locations and grow its sales to more than $1bn by the end of 2023.
The growth will remain focused on three distinct types of neighbourhoods, according to Makuen, with the first being African-American centric, followed by a “melting pot” mix of African-American and Latinx populations, with the third being Latinx centric.
