Citi Trends, a US-based value retailer of apparel, accessories and home goods, announced 18.2 per cent sales growth to $216.2 million in its second quarter (Q2) FY20 ended on August 1, compared to sales of $182.8 million during the same quarter for previous fiscal. Net income for the quarter jumped to $19.8 million compared to $0.4 million in Q2 FY19.
Cost of sales for the quarter reported a loss of $127.1 million ($114.6 million). Selling, general and administrative expenses decreased 8.5 per cent year-over-year due to proactive actions taken by the company in response to Covid-19. Operating income was $26.4 million compared to $0.2 million in Q2 FY19.
“While the operating environment was unlike anything we’ve seen, I am very pleased with our team’s resiliency and ability to adapt to changing conditions as we continue to prioritise the health and safety of our employees and the communities we serve,” David Makuen, chief executive officer at City Trends, said in a press release.
Citi Trends safely reopened all of their stores by July 18, with customer response to our reopenings exceeding our prior expectations, including a comparable store sales increase for reopened stores of 32.2 per cent.
“The decisive actions we took at the height of the pandemic to bolster our liquidity allowed us to act quickly and opportunistically purchase sought-after goods and establish dozens of new vendor relationships to further enhance our apparel, accessory and home merchandise categories,” Makuen said.