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Factors Likely to Influence Citi Trends (CTRN) in Q4 Earnings
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Citi Trends, Inc. (CTRN - Free Report) is scheduled to release fourth-quarter fiscal 2021 numbers on Mar 15, before market open. The company is expected to have witnessed revenue and earnings growth in the to-be-reported quarter.
The Zacks Consensus Estimate for the fiscal fourth-quarter earnings is pegged at $1.09, suggesting a sharp decline of 39.8% from $1.81 reported in the prior-year quarter. The consensus mark has gone down 22.1% in the past 60 days. For revenues, the consensus mark is pegged at $241.8 million, indicating a 4% dip from that reported in the year-ago quarter.
However, the Zacks Consensus Estimate for fiscal 2021 sales and earnings per share suggests growth of 26.7% and 186.6%, respectively, from the year-ago period's reported numbers.
In the last reported quarter, the company reported an earnings surprise of 114.6%. The bottom line beat the consensus mark by 79.5%, on average, in the trailing four quarters.
Citi Trends has been gaining from solid broad-based demand for apparel, accessories and home products. Strength across all regions and categories also bode well. Enhanced in-store experience, driven by the CTX store upgrade, acts as an upside. This and the efforts to expand the customer base by tapping into underserved African-American and Latinx communities are likely to have aided the company in the quarter under review.
The company has been focused on disciplined expense management and improving inventory levels. CTRN has been undertaking other efforts including increased investments in infrastructure and optimizing product mix. Also, higher full-price selling and lower markdowns are likely to have aided its gross margin in the fiscal fourth quarter.
Citi Trends performed well during the holiday sales with robust comparable store sales. This was mainly attributable to improved shopping experience and trendy assortment associated with its Give. Get. Gather. holiday campaign. As a result, management in a recent press release projected sales to be $990-$995 million, the midpoint of which suggest 26.7% and 26.9% growth year over year and on a two-year basis, respectively. EPS was envisioned to be $6.70-$6.85 which reflects improvement from $2.32 and $1.41 in fiscal 2020 and 2019, respectively.
Post the impressive holiday season, the company witnessed a decline in traffic due to tough environment and rising Omicron cases which might have dented the top and bottom-line performances in the fiscal fourth quarter. The company has also been reeling under elevated freight expenses, as transportation costs have shot up recently. This, along with industry-wide supply-chain disruptions, remains a concern.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Citi Trends this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Citi Trends has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Designer Brands (DBI - Free Report) has an Earnings ESP of +12.28% and it currently sports a Zacks Rank of 1. The Zacks Consensus Estimate for quarterly earnings was unchanged at 14 cents in the last 30 days, indicating growth of 126.4% from the year-ago quarter's reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
However, Designer Brands’ top line is expected to have risen year over year. The Zacks Consensus Estimate for DBI’s quarterly revenues is pegged at $842.9 million, suggesting growth of 38.3% from the figure reported in the prior-year quarter. DBI has delivered an earnings beat of 116%, on average, in the trailing four quarters.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +3.86% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2021. The Zacks Consensus Estimate for quarterly earnings has moved up 0.7% to $4.60 per share in the past 30 days, suggesting a 34.9% rise from the year-ago quarter’s reported number.
Ulta Beauty’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.7 billion, which suggests a rise of 22.9% from the figure reported in the prior-year quarter. ULTA has delivered an earnings beat of 76%, on average, in the trailing four quarters.
Hennes & Mauritz (HNNMY - Free Report) currently has an Earnings ESP of +20.00% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter fiscal 2021 earnings moved up by a penny to 3 cents per share in the past 30 days, implying 250% growth from the year-ago quarter’s reported number.
Hennes & Mauritz’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.41 billion, which suggests a rise of 12.5% from the figure reported in the prior-year quarter. HNNMY has delivered an earnings beat of 16.7%, on average, in the trailing four quarters.
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Factors Likely to Influence Citi Trends (CTRN) in Q4 Earnings
Citi Trends, Inc. (CTRN - Free Report) is scheduled to release fourth-quarter fiscal 2021 numbers on Mar 15, before market open. The company is expected to have witnessed revenue and earnings growth in the to-be-reported quarter.
The Zacks Consensus Estimate for the fiscal fourth-quarter earnings is pegged at $1.09, suggesting a sharp decline of 39.8% from $1.81 reported in the prior-year quarter. The consensus mark has gone down 22.1% in the past 60 days. For revenues, the consensus mark is pegged at $241.8 million, indicating a 4% dip from that reported in the year-ago quarter.
However, the Zacks Consensus Estimate for fiscal 2021 sales and earnings per share suggests growth of 26.7% and 186.6%, respectively, from the year-ago period's reported numbers.
In the last reported quarter, the company reported an earnings surprise of 114.6%. The bottom line beat the consensus mark by 79.5%, on average, in the trailing four quarters.
Citi Trends, Inc. Price and EPS Surprise
Citi Trends, Inc. price-eps-surprise | Citi Trends, Inc. Quote
Key Factors to Note
Citi Trends has been gaining from solid broad-based demand for apparel, accessories and home products. Strength across all regions and categories also bode well. Enhanced in-store experience, driven by the CTX store upgrade, acts as an upside. This and the efforts to expand the customer base by tapping into underserved African-American and Latinx communities are likely to have aided the company in the quarter under review.
The company has been focused on disciplined expense management and improving inventory levels. CTRN has been undertaking other efforts including increased investments in infrastructure and optimizing product mix. Also, higher full-price selling and lower markdowns are likely to have aided its gross margin in the fiscal fourth quarter.
Citi Trends performed well during the holiday sales with robust comparable store sales. This was mainly attributable to improved shopping experience and trendy assortment associated with its Give. Get. Gather. holiday campaign. As a result, management in a recent press release projected sales to be $990-$995 million, the midpoint of which suggest 26.7% and 26.9% growth year over year and on a two-year basis, respectively. EPS was envisioned to be $6.70-$6.85 which reflects improvement from $2.32 and $1.41 in fiscal 2020 and 2019, respectively.
Post the impressive holiday season, the company witnessed a decline in traffic due to tough environment and rising Omicron cases which might have dented the top and bottom-line performances in the fiscal fourth quarter. The company has also been reeling under elevated freight expenses, as transportation costs have shot up recently. This, along with industry-wide supply-chain disruptions, remains a concern.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Citi Trends this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Citi Trends has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Designer Brands (DBI - Free Report) has an Earnings ESP of +12.28% and it currently sports a Zacks Rank of 1. The Zacks Consensus Estimate for quarterly earnings was unchanged at 14 cents in the last 30 days, indicating growth of 126.4% from the year-ago quarter's reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
However, Designer Brands’ top line is expected to have risen year over year. The Zacks Consensus Estimate for DBI’s quarterly revenues is pegged at $842.9 million, suggesting growth of 38.3% from the figure reported in the prior-year quarter. DBI has delivered an earnings beat of 116%, on average, in the trailing four quarters.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +3.86% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2021. The Zacks Consensus Estimate for quarterly earnings has moved up 0.7% to $4.60 per share in the past 30 days, suggesting a 34.9% rise from the year-ago quarter’s reported number.
Ulta Beauty’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.7 billion, which suggests a rise of 22.9% from the figure reported in the prior-year quarter. ULTA has delivered an earnings beat of 76%, on average, in the trailing four quarters.
Hennes & Mauritz (HNNMY - Free Report) currently has an Earnings ESP of +20.00% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter fiscal 2021 earnings moved up by a penny to 3 cents per share in the past 30 days, implying 250% growth from the year-ago quarter’s reported number.
Hennes & Mauritz’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.41 billion, which suggests a rise of 12.5% from the figure reported in the prior-year quarter. HNNMY has delivered an earnings beat of 16.7%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.