Citi Trends, Inc. (CTRN)
Citi Trends (CTRN - Analyst Report) is exposed to continuing macroeconomic headwinds, which is adversely affecting its performance. The company recorded a 12.4% decline in same-store sales during fiscal 2009 second quarter, while its store expansion efforts dragged down operating results.
Moreover, intense competition from other off-price retailers, mass merchants and smaller players is exerting immense pressure on the company s profitability. These factors severely undermine the company's future growth prospects and sustainability.
Our recommendation for the company is Underperform, as we anticipate it to perform well below the broader market.
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| Market Summary | Nov 25, 2009 16:03 pm ET |

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