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Bear of the Day

Citi Trends, Inc. (CTRN)

By: Zacks Equity Research
October 28, 2009 | Comments: 0
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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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