CTRN - Earnings call transcript Q4 2020

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Operator

Greetings and welcome to the CTRN 4Q ‘20 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded on Tuesday, March 16, 2021. I would now like to turn the conference over to Nitza McKee, Senior Associate at ICR. Please go ahead.

Nitza McKee

Thanks, Frank and good morning everyone. us Trends joining earnings quarter for call. you on fourth Citi XXXX Thank today Executive of our Chief our is On call Chief Pam and Moschner. Financial Edwards; Officer, Vice Jason President Finance, Officer, Makuen; David

earnings Time. Eastern was X:XX out morning this Our at release a.m. sent

company’s not www.cititrends.com. the under you available have the it’s Relations a received If the of Investor copy release, on website at section

refer Litigation most contain on of prepared to forward-looking in be today David do discussion made statements detailed Securities may aware the results undue cause the Chief Therefore, other call performance. call the Makuen. meaning Securities to the that forward-looking report over remarks from the guarantee should with to Act differ our not Management David? to can XX-K described forward-looking should your XXXX. will filings the within Exchange reliance not Form You Commission this Officer, statements additional We the a Executive you and materially statements of may actual statements. place Reform Private turn these during factors on you future I that subsequent company’s questions. now make These response in for and of more recent statements. those

David Makuen

Nitza. are on XXXX. Edwards, some financial fiscal and our Citi provide morning, Trends’ and progress results joining fourth approaching Thank CFO, results our discuss plans we operating earnings elaborate quarter for our you, I on on initiatives. then forward our how Good XXXX fiscal review thoughts our and on will strategic everyone will then go Pam the and quarter today XXXX us thanks and call. and fiscal for fourth

past opportunity thank like None Trends Before year. America. to entire would this of that all take I Citi reviewing they was XXXX for to accomplished our easy personally this team for our results,

to mission. and of support unwavering associates our primary as our possible as lives was live customers their Our normally

the that the everyday. measures diverse power and powerful unique many our customers winning positioning getting the grateful from and and our Citi culture only and our hard backdrop, so people, double and We transformed the of tremendously brands. what X,XXX us paying Citi stronger to to than on down to our off We Amidst Trends we I be to To communities will collectively model, more safety your work who health pandemic for the is Trends, impacted each believe we profitable am dedication operating and many ways. growth. so continue follow the company have guidelines crew in a years and continue expect CDC

Our year full and actions. during began starting the safely results reopening brands, in all waves We March retail closed uniqueness strong team. base of April. our late COVID-XX took XX, fleet XXXX. the of leadership customer the our our To our quickly motivated are our temporarily stores highly of we engaged in as following recap, of pandemic, reflective We

took CDC to working quick ensure actions closed our expenses financial guidelines and healthy We and working a health We liquidity. distribution preserve strict shopping safe We and recommended with and also aligned protocols temporarily our to and capital environments. implemented centers. aggressive on

annual discuss our and of quarter let highlights performance. Now, key me fourth the

cities majority was our increases for in holiday higher first or growth positive strong of driven to size our XX.X%, the XX.X%, base. Total on-trend an growth, inclusive customer year categories. quarter prior quarter February, growing sales sales driven we our of Similar As increase previewed including sixth our previous in resonated of of consecutive quarter open-only increased store saw fourth exceptional comparable stores we of quarter than with and average a had quarters, basket the the by by that and XXXX. loyal broad-based fourth assortments sales

wherever to than improvements operating a test in made distancing The and $XXX planning rigor to before. ways carryout and of in during work, What’s is capacity added of so X.X% our piece the XXXX For brands potent they improved of consumer combination and needs with but curated business days, Council of learnings CARES model not class group Citi spend in store Latinx that A the and wants increase more the against and of accessories families. social fewer disciplines significant oversee by and never opened the least, contribute many a store differentiating new home open XX%. has trends of elevating XX% year, way fact-based about allowed their important future. and note turns further our experienced to successfully up is our and change. tracking to for inventory and assortment, for Racism always can inclusion for valuable stands optimization, were shop number CitiCARES partnerships and all million create new Employee initiatives during and walk, their or We in analytics how customers’ half lives. and of African-American seen them we serve humanity we XXXX, mission We experience CitiCARES Utilizing we our quality for react XXXX. Solutions buying, diverse to in of amassed second that may research, us limited Trends which social media a this sales allocation, in even despite adding constraints. to selling developed Last significant color, individuals better families replace apparel, to so and XX and stores of a to improving formed hours less inventory new drove world total we stores our

specialty Transformative new the on be or fashionable, spicing in in across sexy, by your many differentiated your it have fact, underserved that Citi, unstoppable fav streaming for those planning with premier one women’s, us and latest the new beauty X showing of of we thinking Trends. footwear. our best up are team and block, value lashes, apartment cities, stardom, and functions of aha deliberately experience, By the at or assortment kids, rooting so to and lifestyle way kitchen, we TikToking home comfy, communities. the brand allocation drop our the Citi and up Under to X your or way the channeled lit which deliver and rocking heels. accessories, inviting confident course, and looking dressy enable nails cities, position forming In created moments off energy home, buying, our earrings around, and coolest on of men’s, as the teams showing kicks trends lighting, forming

more, prices that break the and that all back. won’t are with stores Our

fiscal to the Now, in Pam? to like fourth the over and results our CFO, turn full our I call Pam, thoughts detail. would around to and quarter greater XXXX discuss year

Pam Edwards

Thank morning. David. you, Good

months would busy I say It’s few and that first productive joining Citi the team. I on like to I Trends be business joined the been you First, am to call. and am a earnings to know excited very to getting my have delighted

be to apparel, in a of The XX.X% in was to increase fourth sales of basis basket fourth driven customer in continues our review turning follows slight increase lifestyle markdowns. offset majority compared third XXX to gross by increase had in while comparable The size XX.X% basis in high margin total by The an was home quarter by including increase XX.X%. primarily driven the our price results, of prior low a $XXX of gross full fewer and absolute comp transactions. achieved strong in the comps. a in sales Now, year the gross our comp quarter profit of XXs of quarterly selling XX.X%, reduction sales XXX the million, points store quarter increased from rate third points result our to increase of quarter. quarter expansion of XXXX. We the This profit and

incentive quarter from dollars income a by compensation million X.X% As of of fourth X.X% the the SG&A increase expense last to SG&A compared $XX.X of an attributed due expenses the increase performance. $XX.X an XXX% last was in was income year. last XXXX points year. better quarter in to by to XX.X% of to increased primarily result margin year-over-year to of compared sales, operating $XX.X million higher operating expenses million, for year. The Operating compared quarter basis to SG&A percent fourth of in XX.X% XX fourth leveraged

line, $X.X million net of Now, net income turning $X.XX quarter in $XX compared share the quarter was bottom last to million compared year. ‘XX. the of income to our Earnings to per fourth in of share, for fourth quarter was the the $X.XX diluted per

of XXXX, full decreased our for with to X.X% the to turning year the by fiscal store million COVID-XX. decline sales and sales total comparable $XXX.X results, driven Now X.X%, impacts increased

to basis markdowns in for quarters to the X,XXX a recorded third and gross sales temporarily open store store only our The from through then fewer XXXX. third sales As price quarter, closed as sales the XX% March. full we our XXX markdowns quarter, in fleet sales X, X.X%. of And reduction a quarter, the margin comparable XX.X% we of full expanded primarily basis finally, was Gross fourth the in the second points store strong quarter store year store increase increase comparable comparable reminder, XXXX in open, in March second, due XX.X%. and in our selling the in points quarter to increased X.X%. by increased in comparable stores took the the sales offset fourth the first our increased margin for our for partially first XXXX, we comparable In stores. And XX.X% due

a percent were to XXXX. for work to to the and compared X.X%. required year, expenses expense, to and income fiscal at distribution associate cleaning in surprise of As an center coming in of store last hours, $XX.X X.X% of to PPE with SG&A by our prior million XXXX, for income a sales, margin year, to in expenses SG&A operating quarter the flat operating teams for $X.X offset Operating furloughs compared a decrease operating primarily Partially XX.X%. second primarily year due million by of $XX.X of million safely. increased compared reduced payroll incremental the full increased result and XX.X% in

XXXX. diluted $XX.X per million $X.XX Our net million income to $XX was last $X.XX Earnings year. share, compared was compared to in

As first the reflection XXX-plus ranging pandemic, million of our our $XXX cash from with $XX the from David strong XX closures the including year. to of of store last to $XXX mentioned, cash despite we We a faced results generated quarter significant the at investments during year. operating are financial cash in million of end XXXX last of We half the year. days compared million execution, million the and headwinds generated $XX ended compared to operational flow

program. X,XXX,XXX During the repurchase year, shares we under repurchased million for our $XX.X approximately share

year, authorization. the buyback share on fiscal of was end As the million, our there remaining of $XX.X

year. last Notably, total we down inventory, ended in with inventory XX.X% a for inventory the to in our XX% stores. the last end to end year. ended quarter As we inventory less comparable inventory year represented QX, season with compared our position, XX% At compared next of of XX% the clean of the buy very

Now, turning by encouraged which first and to ‘XX expectations. is our internal above fiscal outlook, quarter-to-date our performance, sales we quarter are our

XXXX, full sales expect with For earnings we of grow $X.XX. year $X.XX the share to and XX% to per between XX%,

We remodeling expect stores, new spend and for to opening towards in XX progress the expenditures capital year, million our making $XX XX infrastructure. including stores improving at least

turn remaining. We David? back authorization, which I for also XX.X David comments. to yesterday, continue will now, million call existing you. on repurchase there And Thank to as our shares will closing was of the

David Makuen

Pam. Thanks,

really of facets our you the leadership to Citi they growth challenges. I the team a as our people CEO helped about of new So the and the the as business have entire energized glad have own all strength passion time our study and to am of team. on Trends, of conquer our strategies. had I After brand have year

we four we are accelerate to growth. As key sales time, areas look the and by to focused strategic over foundation earnings on XXXX,

number strategic fleet; key include: in optimizing growing number our four infrastructure; Our four, our making and number number two, mix; focus our one, communities. areas in product our three, investing of difference a

our in ended about XXXX, year fleet. XX stores. detail with opening stores XXX we growing the little a After First,

to X,XXX are we opportunity in today. stores outlined from we where fleet eventually, XXXX, January see over growth of our grow XX% to we As

and We in will African-American distinct types of fleet Latinx and number two, three, Latinx; grow pot, number African-American one, centric; centric. of the three number neighborhoods: melting blend

spending Over our minutes bullish our less growth or customers in live We XX customers love are store. our a given on of stores. store half within that time

as hour Our for high time is in they many an extreme dwell trends fresh very values. with stores at over the searching enjoy spending latest

Trends the We the community value, access and extend culture. are truly family. from and will the Citi for fleet Growing the further locals provide for to more our employ our more

Second, we our are optimizing product mix.

to curating to of Our our customer we have the goal And opportunities in more of opportunity heart dynamic engaged, X do. assortments how use the our compelling ultimate data offerings of see preferences changes really highly everything hone on of customer for customers we the experience improvements We years and study our related business. fine-tuning the our creating so with months store our and to in even the is cities our areas at because across ahead. are an or inform and we and customers,

Lastly, brings as product which is focus, automation, market, and depth, choice to continue expanding and focused in non-apparel to we investing third which optimize over we driving systems turns and are prioritizing our faster mix, investing our strategic to categories improving our in breadth speed me infrastructure. on

or we our including remodels investments fourth focus, to making buy, optimization, new to part apps such as we store inventory buying it, approach system. and supply solutions in by merchandising, cloud-based move, lastly, or are tools speed chain, growth, as of call We system, we we and system our In a addition supply center as and strategic in distribution to are in in sell. a difference. and implementing will And and store enhancements. sell, are POS upgrades our and will making chain tools associate new workflow analytics as improve productivity, and And lastly, product In developing as allocation well bring investing that stores our so investing data-driven process. mix a do move buy, across planning,

As I of is mentioned, everything do. at our heart the we customer

making serve and can committed we in a are lives the to communities difference We the we that impact.

chaired becoming flooded company, Responsibility kick-started inclusion, journey that we History sustainable winners Board oversee future. We Jenkins. and Committee quarter, Black the Month. first in diversity our businesses. Margaret entrepreneurs Committee were initiatives grounded look their During XXXX program more ESG of around to during black the responsibility the X to grants our for We online the in start $X,XXX applied towards of social will ever formed forward we Social as Directors Corporate a and with fact, history XX announcing makers black near a by in with further our

time. in that we ICR at the earnings four in will growth increasing to in year; of XXXX; our our focus stated initiatives we XXXX reiterating As on our accelerated end, billion more growing said believe we the store sales conference these January, top to over comparable sales lead To than sales previously growth growth $X targets, an are: delivering line which are at in average a diluted annual per about rate XX% to per per rate compound of lead compound year, earnings year. at growth operating least will by improvements chain of supply of least remodeling end at and stores XXX growing investing with the per fleet the at of end stores. annual XXXX; increasing XXX income at plus new infrastructure merchandising, and a XXXX; by XX% growth This more from stores share X%

strong am We know Trends unfold that operational I accomplishments you. to beyond. take and our transformation Citi finish team strengthened in many our that, outstanding a we you our see and XXXX With the had is excited diverse entire overall, excited positioning. in to XXXX year. about future sparked Thank Thank that that the financial and So are to ready questions. to I

Operator

Dana from comes first Instructions] Telsey Advisory Please [Operator question Group. Our with proceed. Telsey

Dana Telsey

team on of an Congratulations, what David you in and the to the entire pandemic. a depth year amazing

the for on going and you. data inform that to think of business game What include you glean to are model been you important has As changer I know looking XXXX about beyond, is an new that what XXXX? to planning about? are And you then how to will help are you. you the data we drive levels, what seeing, the hearing business disruptions with that are chain given Thank in supply inventory you all

David Makuen

a lot questions. great Thanks us Dana. Hi, and joining for

all all data understanding mining It’s all as P&L. On can our year. it tell organizing our and the data. can expenses in of is data a what really, it, our opportunity improvements it our start study how place infrastructure all see inform we I across getting you to this terms impact internal can we levels to over our of using great how front, and is of We focus in XXXX

So be have, data leveraging we already this function, by then systems really from function our the able actions take that to year, to we to users putting sophisticated on thankfully focused into insights. enable and insights glean those

out inventory all the retail landscape. there On in we know great question, the headwinds one, the

come. as with them dealing We’re they

pretty goods. be we to flow coming at the agile plans believe fresh and place the right trends to keep rate we as the of moving strongly the appetite. difficulties to deal able meet overall, in new and We’re we slowdowns with But consumers’ nimble required our have some

So of any headwinds we huge and come for consumers. don’t what’s our in see terms excited about the to trends nailing really there, we’re

Dana Telsey

just in Pam, you. at And expense is there? opened stores, the for occupancy Thank you structure of compared business there in terms new opportunity given what of on seeing as you stores, you. – Thanks there are opening as we the the one as of costs and is hear what quick have previously XXXX the one out you costs occupancy to look

Pam Edwards

at with relationship deferrals. Thanks, secure way, we we to And bank along good the were and sense Last current for economic landlords. our and in the able terms Dana. renewals renegotiated Thanks us that to extended our options landscape. made year, strong

perspective, as we a we’re towards So in from shape I year. good think head headwind the pretty

Dana Telsey

Thank you.

David Makuen

Dana. Thanks,

Operator

Please Jeremy with from Capital Hamblin Craig-Hallum comes question proceed. next Group. Our

Jeremy Hamblin

store around performance pretty start more XXXX. Yes, to the quarter-to-date getting here I noise forth. bit little thanks. Good morning and a closures wanted color a and congratulations so by in just on given remarkable on

I see as if last use a wanted performing expectations. said. that us bit ago? you said comps were through period which that your to I a think to benchmark, could in I we that in quantify believe noted stores you Wanted year March a about it X.X%, X, you’re enter year, to if up You more sense detail, or give above a see little a that given closed that were

David Makuen

question. Jeremy, Thanks, joining, and for good

biggest any years can’t of couple. takes as I and our what And out above through all of tax internal and we share refund we’re are share about in curvature model those specifics, the QX. as way, there of when is I’ll can which into to is While puts changed which prior is expected best in we The books. pocket earlier, QX, a go I that’s that were kind our lots when we shifts, are they dribbling know, and year, sales planned talked we why in results it are flow this expectations tax we dollars can consumers’ one

eye a there as us, the tax far, other is that I pleases a I seeing trend satellite. So compared years. impacts more that shift is Easter prior timing that. then a the mean in to we’re keeping lot come close factor we’re our on on curve but to think the And refund so QX

that big nice a pretty big certainly well. as And but baked us. sort it’s we not Christmas, in for peak that’s It’s as – as not XX-day So of period.

that’s a shift as So well.

of on in to our doing kind ‘XX, of run fact. we’re lastly business. the XX, run-up And And models. we’re starting plus kind to know, against rates So what’s compared the of our a coming all so what ‘XX is is we’re And then as nice into far. ‘XX that’s closures you trend that XXXX, so all to comparing putting out we

at of And it’s, we model of ahead starting kind think, and X-year strong we see put business. our look you blend what us our almost sign fundamentals tracking together, the of says, that to a all stack so a I business. we’re When the in as

Jeremy Hamblin

Okay.

a your have that’s least you’ve well. noted, as the the you’ve Is terms to XXXX benchmark, going hone money were of be that tracking that in as AUVs year. seems thinking to kind based more on as got, are current coming And got – above trends QX like been your quarter-to-date? little about to of bit very in XXXX that Easter, levels, you a at strong. it that assume trends It checks, fair stimulus you running our of in Just on

David Makuen

– Quarter sister is because, well, shifts. timing. a year the different exactly and perfect tax again, ‘XX for not not Easter

gives But ‘XX. exact confidence trending are we So those a in moving that can’t say account our we’ll of above. all or above parts, modeling, us kind to be are in direction again, try that we for they when that

Jeremy Hamblin

Understood. into shift optimization. product I your wanted to

new share XXXX? partnerships You can in with that expect had Jordan last us initiative brand anything can at some that really now, new brand, Hilfiger year the successful but that we are Tommy more looking here you how with additions, of you

David Makuen

which to I’d really shed a What enhance best little the customer on a and most our to also private men’s, nice right we Happy into for penetration in do dip our of cities brands. brand kids start with is of specific Sure. our brands, of our we label assortment that. of level beauty light is with all developed particularly combination in grounded mine. and then And with women’s the accessories categories, of then are and

we’ve look in and added of enhanced we’ll our you’re landscape, right, definitely beyond And So all to those continue do as at good develop is through we assortment frankly, healthy what that relationships. brands XXXX nurture have some and XXXX. the

partners relationships That’s end us. that Some we and at new some go. are our will But of the retail. are day, of will well the for securing come, part boding

it those men’s, in hoping them in We’re cities the make makes kids. where e.g., relationships and expand women’s nurturing sense that it sense and to

important platform sell-through. some make that number headway to skip more The tailored That’s in vendors and brands give frankly, demographic, that goods we brands. to black-owned stories particularly that. will, watch it Citi on really new if find good closely can So And those It’s but to you releases, black-owned We’ve out. upcoming woo got of share you the resources, bring of to each have our focus I then plans are make right we bringing we’ll a new a continue ours more vendors of of in to private bring don’t a and want and on our beginning label to amazing. it very well. as to heads, is discrete we’re

So the mix. we’re excited about really total

Jeremy Hamblin

hone if private two? the where and a year or Got percent expect your we of you give you just in where trend here can a in of kind next is to XXXX, mix it. us over on it of kind range And of that could the label as

David Makuen

you, I of What it bulk of into tell I’ll the we of remains the would read lifeblood it our volume. at it’s than Yes. Sure. kind XX% do. leave And greater that. really that, what

And brands we we so as of for part our demographic, the country with our to meaning we’ll maintain have it’s mix, whilst goods tailor that always often that these hundreds make unique around that vendor customers. we the curate relationships can vendors and of can goods

the seen So as stores, we’ve very for of openings speak, to yes, them and guys, continuing apparel, we pie. love piece to to in are carry work they those We goods are beyond a important our with so example.

tech the So that that a development in us do home would stuff that in you business, business, for do private would you we’ve stuff would us opened stuff the lot for companies the for in team up business. brand of new us do

of store. thing that on and find again, down a the of kind it road. is of them and about covers excited a lot And really being back we So opportunity more more great to continue the

Jeremy Hamblin

Okay, question. I had marketing great. And two-part then a

XXXX? serve ideas potentially are then And loyalty other data to percent type know a gather to expect at customer color potentially in it a a your of data be follow-on on Any customers what program more any or as do here your there guy. that? looking big was marketing additional effectively? in I of kind you And are to ‘XX? to you in as is, terms of moving sales spend First that forward what of

David Makuen

Yes, Jeremy. absolutely. Sure. Thanks,

it pretty of immaterial then smattering what it’s a a small call On marketing. XXXX spending, by signage really I’d paid marketing social and in digital, leave and the marketing media It’s driven front, at, it driven ‘XX. store by I’ll level maintenance most

it’s So we’re call – I’d it, immaterial.

‘XX learning because about We’ll this this mentioned. opportunity the in our more in is top get but testing We’re really on strategic a that say again, four future, the marketing, focus bunch I likely of year on to have of imperatives it’s, ‘XX to of areas not to our and marketing year. We’ll and things.

On got us as front, something and But we’ll dear the for mentioned, definitely will and probably again, the to I the and new similar a heart, put road. it’s in, system, customer maybe which years years by collecting technological forth first POS We reserve foundation of the give answer. and collection, loyalty test begin near scaling our a to so that the learn down it of couple data. few down begin road, to

fish get think but the point So But XX we forward. there, in pond. to we’ve business XX propel fry out next it’s bigger We will you’re in want got to this that that at the right to our months fishing some in future.

Jeremy Hamblin

changes say you a faster. bit has relative is that kind know can of seen that really you we XXX fewer of for least just the years inventory in on terms sense been your in markdowns. get percent margin at of us like just all markdowns that. had straight of of how basis because versus give my the But But that’s these seeing turning you’ve you what that in your looks margin coming quantifying, of upside seen performance can so Okay. now It’s from of It been quarter quarters previous you’ve of gross Last one you’ve you sense exceptional. much questions for me year-over-year. and made And last gains step-up had, appreciate margin a three but taking little a here. again, points I just I third a

David Makuen

prior, the future. lands But better were we’re in looking specifics everything in to markdowns them doing divulge are now double-digit single in We better single-digit I what share can power keep and don’t this We question. good for with directionally and there. in ‘XX, get we Yes, ‘XX our land and is certainly digits you at in Jeremy. and in area,

to, we’re And something to there’ll is doing down What take in used are nothing. and never way more the to the say we always right the in we really so so forth. something, There out with trend we they next to selling used of buy on sell-through, I’ll buy make go that price are mindset upfront want so move on order be focusing and strategically away. celebrate than then

that point, So have margin to amazing accomplishment, it’s an it’s single fact digits – into our they your the aiding expansion. and embedding moved is and

Jeremy Hamblin

that gross Got is, what it embedding then better. a looks it. assumption? is that it even year, margin in for margins that Is you to to or over guidance your I’m be And my going close are possibly the assume like a to And view fair touch operating assuming your EPS X%. on did on fair maybe XXXX you’re that based

Pam Edwardsb

Yes, assumption. a that’s fair

expect to high of our continue trend We low XXs. XXs,

Jeremy Hamblin

much. this so Thanks luck year. Great. of Best

David Makuen

Jeremy. one. great Thanks, a Have

Operator

next comes from proceed. John Please question Baraboo with Our Growth. Lawrence

John Lawrence

Good morning.

David Makuen

Good morning.

Pam Edwards

morning. Good

John Lawrence

David, on what a upon pandemic of unusual been do? what to other been accomplish talked arrival, you’ve lot in we you’ve all of just year. on things congratulations since But to able first your congrats obviously, able

David Makuen

Thanks, John.

John Lawrence

that economics better the at model, thing, Just on this question basically and that’s store better you productivity looking basically through. of work markdown, dialing that little merchandise, sell unit less the growth have on following type in a Dana’s bit curve in and

years estate than that of the all ago? does open a of or that up that when for new more X if assume better all door As real you estate real say, look margins of had, in I will, would. opportunities you lot model, and at you’re model, sort X it the and meetings, new you

David Makuen

great Yes, Absolutely. question.

about of a the of going the party all has line to amazing adopt really think think data running. remodel have, and and the a transformation our that with a helping real meetings actually helps only great [Technical of country that estate. And new couple not In to also figure and changed, of selection. learnings talked with ago, we off us We’ve real out can sight we some it’s that’s got point, the figure demographics but about estate your portion well. to enhancing do site Difficulty] a we’re stores, calls how where in XXXX I

have enter we’re how made that a about spoke our along has next we data estate. considering so been given it. to opportunity John, because real we a us have mix, lot that confidence in neighborhoods and this And that with And I of, shoppers. our tailwind, big terms in learned the smarter in fleet, of results more the as having those of definitely, with sliced improving the And us part has think, it’s also as

to ago. And of sites for make on And so looking on wasn’t there, really it’s all. aha right X those one a and years would that part of neighborhoods. open chasing communities firmly And at and now X we’re we’re the the us those Latinx new agenda moments, stores that that’s

John Lawrence

a do information just And assume probably that one big of it when what remodels step on to increase that? you remodels. you given have those Yes. ROI take further, what those – get to these comp one high I and one of And on do use pretty to any it high with do of the cost you a cash

David Makuen

Yes. No, on. you are right

out on anticipate with how really ROI term. these to depreciate in following. level looking allowance. to depending time the the to comp right landlord revised We’re and conditions TA nice We And remodels. and try then potential, the before. either at we age fuel do we get and remodel, over similar then figure proceed payback We the and single or a curve we can done then a from and a the that from in of remodel, the lift digits do a high standpoint, get it we a do nice And produces it

So yes, you’re absolutely right.

landlords that better too, oldies. into tell the process, data And not and going with into than just insights we’re would I to. following negotiating used you, We’re we

even we see based that’s class on approach a density. new the well. where population for potential biggest We’re lift opportunity stores as the recent And an going more into

we’re of approaching kind bunch from angles. did our of these so remodels And effect. new a just first-class We

So the XXXX, we in start. that off have to and a of publicly stated XX we’ll eight, they good finished are do we

working, I more then our think we’ll have and all this do formula XX next year. is So seemingly to year monitor sell and

John Lawrence

and Congrats welcome time. you for Pam. much so Thanks Great.

Pam Edwards

you. Thank

David Makuen

Thanks, John.

Operator

there continue at presentation Makuen, are time. or further no closing Mr. Please your remarks. with questions this

David Makuen

I’ll now. and you great and time. Take Have everybody. care a much. keep at we Frank Thanks Bye-bye. will the day thanks it so for week brief. next see

Pam Edwards

Bye.

Operator

the disconnect ask that That for your thank your day, for and you participation today. call you We everyone. a conference does please great Have line. conclude

Nitza McKee	Investor Relations
David Makuen	Chief Executive Officer
Pam Edwards	Chief Financial Officer
Jason Moschner	Vice President, Finance
Dana Telsey	Telsey Advisory Group
Jeremy Hamblin	Craig-Hallum Capital Group
John Lawrence	Baraboo Growth

Citi Trends (CTRN) 16 Mar 212020 Q4 Earnings call transcript