Citi Trends Inc

Citi Trends reported second-quarter results that extended its comparable sales growth streak to eight consecutive quarters, with total sales rising 10.9% to $211.6 million and adjusted EBITDA swinging from a $1.1 million loss to $5.5 million. The company raised its full-year guidance, now expecting sales growth of 10% to 12%, comparable sales growth of 9% to 11%, and adjusted EBITDA of $38 million to $42 million. Gross margin expanded 60 basis points to 40.6%, and the company ended the quarter with $55.9 million in cash and no debt. Management trimmed new store openings to about 20 from 25 due to timing, while increasing its remodel program to 60 to 65 stores. CFO Heather Plutino noted rising fuel surcharges are pushing freight costs higher for the rest of the year. The company also launched its Insiders Club loyalty platform on July 15 and approved a $100 million shelf registration for potential acquisitions.