20-year pro trader reveals “Moneyline”
Ditch the indicators and use the “Money Line”. A simple line that tells you when to buy or sell without the guesswork. It’s the line on a chart that helped Nic Chahine win 83% of his options purchases. This is how he does it.
Citi Trends Inc. (NASDAQ:CTRN) shares are falling in pre-market trading on Tuesday after the company reported mixed first-quarter results and revised its full-year 2024 outlook.
The company reported quarterly sales of $186.3 million, up 3.7% from the same period last year, but sales fell short of Wall Street expectations of $187.37 million.
Citi Trends closed three stores and remodeled 20, ending the quarter with 599 stores.
“We recognize the tough economic environment for lower-income consumers,” interim CEO Ken Seipel said.
The company saw same-store sales increase of 3.1 percent and gross margins of 38.7 percent. “More notable in the quarter was gross margin expansion of 160 basis points year over year,” Seipel said.
Citi Trends reported an adjusted EBITDA loss of $800,000, narrowing from an adjusted loss of $3.2 million in the same period last year.
Citi Trends ended the quarter with $58.2 million in cash, no debt and no borrowings under its $75 million credit facility.
“We have ample liquidity on our balance sheet and, thanks to our financial discipline, we are debt-free, which gives us the flexibility to fund business opportunities at acceptable rates of return,” Seipel added.
Citi Trends reported an adjusted loss per share of 32 cents, better than the consensus estimate of a loss of 35 cents.
Last week, the low-cost specialty retailer said David McEuen had stepped down as CEO and as a director, and the board said it would consider external candidates in addition to Seipel in its CEO search.
Outlook downgraded: Citi Trends lowered its same-store sales outlook for fiscal year 24. The company now expects low-to-mid single-digit growth (previously: mid-single-digit growth) and gross margins to expand 75 to 100 basis points, in line with its previous outlook.
The company continues to expect full-year EBITDA to be in the range of $4 million to $10 million.
“We intend to execute our operating plan under our own control to achieve our EBITDA target this year,” Seipel said.
Price Trends: CTRN shares were trading at $23.75 as of last check on Tuesday, down 3.65% in pre-market trading.
Photo from Wikimedia Commons
20-year pro trader reveals “Moneyline”
Ditch the indicators and use the “Money Line”. A simple line that tells you when to buy or sell without any guesswork. This is the line on a chart that helped Nic Chahine win 83% of his options purchases. This is how he does it.
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