CTRN - Earnings call transcript Q2 2021

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Operator

Greetings, And Welcome To The Citi Trends 2Q 2021 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we’ll conduct a question-and-answer session. [Operator instructions].

As a reminder, this conference is being recorded Tuesday, August 24, 2021. to conference like McKee, to now Associate. Senior would turn over the Nitza I ahead. go Please

Nitza McKee

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

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

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

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

David Makuen

our the progress master growth and and on will us discuss of initiatives. operational morning, the financial of you, second everyone, related I Thank joining our update activity of confidence you transformation strategic highlight our Citi thanks for remainder the fiscal of today review continued model, for year, our our our our morning, XXXX quarter, Nitza, I and and call. will support our the good quarter to results evolution for in on business earnings plan in strong This and the second business

and not I CFO, emphasize gratitude provide our guidance will of to financial I if again, elaborate moment the to details a remainder year. Edwards, on results, the dedicated did our for take our true our organization. remiss Pam teams across addition, our my In once about be would

Our many root families’ will people. serve the have pandemic our The Thank is experience customers Trends teams of the from our Citi and to you, culture their especially teams dedication lifestyle brand accessories, at wavered never apparel, prices needs, and that Citi faced and emerged, our Latinx industry passion our growing home vendor challenges internal day, sought our becoming loyal every partners is Trends for since the and has to making bank. after and our and and and for communities. African-American stronger break the culture never

to to journey we us up more partners. experience have runway just many Our ahead of gear a the has Trends associates, as communities, so Citi and long begun, we expand business and

XXXX. me to increase sales of QX let the performance, supported key our positive quarter highlights increased of discuss in XX.X% QX quarter by Now, positive XX.X% Total XXXX. the XXXX, versus an sales second comp of second versus compared

topline spending, comebacks, lapsed a longtime increase driven many was have size, of as customers. and basket average growth by new strong from loyalists, the Our for result our quarters, five seen last we in

financial better economy the customers as In to and position, expect continues fact, our are employment continue rise in levels we will which improve.

or very across our by Citis encouraged broad-based again categories. We the are once trend

lifestyle. six versus registered men's, growth ladies, fact, double and strong including beauty and home our five accessories, digit XXXX In of we kids, across Citis,

great scouring the allocation landscape values. teams trend Our masters, brands, planning, developing in skills showing and relationships are with sought-after truly amazing proprietary building for buying, assortments, and

supply values, and the improvement us. chain and improved capabilities. receipts to putting business their of on-trend of to assortments, need our it our flow of the consistent to the paid stores in center excellent that rush of customers performance confidence tailored our unwavering and when points quarter, at communities to momentum, our our is underlying unique and Central momentum by at Our transformation power the our the comes decision-making underserved really in physical in close needs desires. we to value experience, our attention specialty Throughout evolution store enhancing

seasons. leverage. compared Pam operating in significant and August, exceeded these despite expectations. gross results our from we diversity We high-performance for of internal far labor share and the operating beginning points detail, macro to freight diluted margins, $X.XX, Trends, our will of continued basis back-to-school back-to-dorm Earnings resulting This the As second and and into with XXX quarter, results as nearly period our well-executed, adaptability quarter that headwinds another expanded momentum of was carried margins middle QX P&L, our QX heading in our operating in model. describe well strong and of fact The the to great Citi in in registered XXXX, greater the growth the start as the has expense per showcases into quarter. achieved a

to on above lie we've half increased of of outlook momentum our previously the we're performance, on I EPS strong end report total am seeing in high ranges. our our ability full to year, ahead, forward capitalize XXXX, the and and opportunities to we in provided third sales first As the look confidence the pleased remainder the that that quarter, based

total a for topline reaching will shared us revised Our range previously midpoint outlook long which earlier than than have sales more our now $X planned. target year of billion, calls

base resulting over on With that, is sustainable spend the by which is Citi our of years customer, expanded growth. of to meaningful Importantly, who will turn our more believe we The for details. Trends many business Pam, assortments, path clear transformation higher time. has built a improved, per provide Pam? I'll CFO, foundation improved and in trend-right

Pamela Edwards

everyone. David, you, morning, Thank good and

David well quarter. As this executed was another mentioned,

a associates. remained would and has our what results, we're a echo also and We I so stellar In environment, our in delivered to in are and of quarter. without David's with work far to momentum half we could half hard first like team. third first fluid very pleased comments the thus dedication continued we results the have appreciation done not incredible expressing experiencing our the

accelerated all occasion, has have rate our excel performance. the to but risen in to their have and Our growth teams, challenged continued

store the expense QX cost the abated provide company reporting in to normalized press and for mentioned comparison rents, as favorable significant to one-time XXXX reduction, As and results furloughs, more operating other release, a since included closures, credits. XXXX, is XXXX of relative performance such COVID-XX reduced hours QX of

pillar and sell our address though, Before I get pillars. our financials, the the of which move supply between of buy operational the me into chain, let topic is details under

our We our bottlenecks expand As fast moved chain meaningfully QX outsized on quickly getting expected By call, our our of through costs. stores. address to DCs and ran capabilities customer to headwinds last supply available mitigate we we to with meet to and to move performance, those demand. and tackling to in implementing goods mentioned into into our bottlenecks up plenty enough storage some our ability ramped dropship the strategies product

expected to well second season. goods has availability I'm network, our better our While more than remains the products, we as The high move the to came improved meaningfully costs plentiful, holiday our freight efficiently selling quality flowing quarter. our ability report and positioning that goods for in in the fall of throughout pleased and

consistently in increased mark-outs. operating points to fewer turn XXX let the $XXX.X the versus $XX.X results. Total review in XX.X% and XX.X%, compared XXXX. were of compared grew continued points, and Operating quarter per SG&A income selling and XX.X% compared an units million, the growth sales two-year second sales quarter as of second XX.X%, XXXX. resulting transaction, margins gross to sales of of to our XX.X% basis XXXX, XXX by increase a margin of quarterly million growth million, price quarter due was of be unit $X.X to well throughout quarter XXXX. strong strong to increase We as selling, in leveraged on to the basis. The expense average in result second of rate, to higher controls. driven quarter me full average Sales a a income Growth the strong strong in Now, retail disciplined our quarter. basis primarily of were primarily in healthy Comp achieved price, the the in the the increase size. in in gross basket

million Our $X.X second net per diluted income to income $XX.X $X.XX of the was Earnings XXXX. net in million for of the quarter, per in compared XXXX. second the $X.XX, was to compared quarter of share quarter share

XX.X%, of total turns compared XXXX, second decreased XX.X%. inventory of total second ending improved inventory Turning record freshness inventory We to increased sales our while quarter, to and experienced for increase quarter the to levels. inventory, the

the second the June stock common cost approximately approximately remaining quarter million $XX.X shares authorization aggregate repurchased in the quarter. XXXX. $XX.X XXX,XXX its company of announced the buyback We on Lastly, million on at with approximately an ended of X,

our announced release, press that we Directors Board share addition, In today, our XX authorized additional has an repurchase. million in of

feel and back-to-school the Turning back-to-dorm including XXXX season. fiscal to outlook. our by momentum strong in to our a great start our business, We

year, growth, to half continue the that a capitalize the guidance. are ability we therefore high lie As confident second operate in fiscal at we and our to of on of ahead level opportunities our raising are in the

$X.XX a diluted would to now million earnings $X.X of Specifically, result compared share to expect increase $XXX a of David turn generate to XX% approximately XXs, $X.XX cents XXs we the will expected Within previous This midpoint or now range total XXXX. gross in closing to increase billion, midpoint in of per back of sales to will to for guidance. the fiscal in XXXX. comments. our margin be this guidance, to consistent with high that expect compared XXX% call we the I low

David Makuen

Thanks, Pam.

that our shop the evolving As vital shared Latinx masterplan, one-stop underserved our growth are and as firmly work momentum, accomplishments communities. positioning will brand past, Citi Citi we've at and a build trend of a Trends in a on African-American hard we a plan result purpose-led for what

reiterate in masterplan allocation go-forward with full with assured, future briefly four team to the the earnings more and on our capital and to drive look and Board of provide in January member, the the Rest expertise unveiling of entire will targets We of passion, Citi continue continued and Citi very at now will will growth. we forward out Trends time. has update a our and conjunction revised Also, build of with that growth ICR will leadership every active the team, I accelerated building you at initiatives plan, in of XXXX. progress. along you Directors each updating is one brick partner on to Citi our conference sales process our specific strategic our our

two, our in within infrastructure. they reinvesting As our And base. number a communities expanding Number four, we serve. fleet the optimizing Number a customer our are, our three, number mix. difference growing one, and reminder, making product

expanding our and fleet our customer base. First growing up,

fleet from Our site a where stores, are DMAs X,XXX opportunity and to today. we both existing new We remain on over XX% set tremendous growth of potential DMAs entering time. within grow a a see

on distinct mix African-American key CTX Our Latinx melting of driver growth types customer three centric. of populations, will XXXX. new growth of focused a rollout be remain Latinx African-American free of A in and or centric our pot, and neighborhoods, neighborhoods, the experience will

a the scaling we our mentioned testing amplifies extremely call, early two stores we and labs exciting it outstanding, And represent our existing and to analysis, trends, for QX. store the our to of more that before, special new It's testing rigorous a ground associate been takes with after thus ways QX two life and looks, We pleased and has Customer results more stores never As lab added the we compelling during and look next bring launched in are specialty in so head-to-toe more sought-after experience value experience to level. shopping forward far. during customers. portion exclusive designed intimate our and to brands, to CTX making feedback XXXX.

new on remodels track remain and XX XX we open XXXX. in Lastly, stores to approximately

forward for from least XXX at plan stores least Our remodeling XXX and XXXX calls stores opening through at new XXXX.

goals. We are and meet confident can possibly exceed these we

trends of assortments incremental to life. and new customers customer bringing to bank. while optimization mix calibrate breaking responsibility businesses our our our transformation on product our Citi existing to for our their anchored mix. role that their be speaks while Trends, into being Ongoing transformation the the needs, allow our Next At This to responsible to product of highly to six tailored each adding to and up fungible of mayor Citi of not buyer space floor, Citis or new store Citi, our is considerably, root the unit categories, optimization seen, model. our our construct basics, is customers. up, constant down that and opportunities With up respective at with presented it and to our to optimize inventory fashion, our of has up senior show offerings fixtures further the the remove assuming clean optimizing selling

mayors are vendors assortments to on-trend. partnering resourceful are close to Citi customers, Our with their unique respective staying provide that

learn, We margins. grow to analytics data returns, inventory to improved further maintain and are utilizing build opportunities drive and test, our healthy productivity, new gross sales

in our reinvesting Third, infrastructure.

I process cash buy, supply infrastructure in the flow are are in improve earlier, move utilizing As sell free mentioned and a embarking systems move, we and focused past, investments capabilities. our have our across reinvest keenly of of some operation. our of our portion addressed light as we to our on to strategically pillars the In chain and challenge, on

us, we of were We the in direction. right in moving have good more but work front

implementing investments data will of enhanced areas in and insights solutions in model. will buy also We’re prudent sell produce grounded for the confident to continued to investments transformation in our that these on planning pillars, actions. of powerful contribute directly business that and our leverage our track I'm

more provide will as this We develops. details

store the Lastly, and genuine name, and making our a hub, we informal fabric difference within as stories in stores not where of by team neighborhood the customers, managers our a an to local customers also part culture. of only of presence More interest members but take serve. serve listening ever, know being than and their styling the our communities

example Makers XX, the corporate applicants was offering inspirational. dreams business aspirations. Seyfarth, grants the collaboration coupled Black are Citi making are Our our of how quarter a communities. Board curriculum $X,XXX ESG. meet of seek Council, DEI small Program their our we you valuable law our honor in the Trends. their we includes first along impact QX was to in our difference History our social an on academy, the with it with announced them communities will Citicares all Getting to was entrepreneurs Black of the annual A our Black This celebrate made who Citicares forward inclusive during months of pursuing legacy in responsibility, great footholds that in launch help with We additional support of a sharing exciting History lens XX establishing leading national Makers June of through ahead, which with look and through Directors, and We in committed team to these as firm. as more to we to activate Together, in program. for diverse was and to winners are the as It's grants our culture. and well-executed and hope winners another

I value business, unwavering as Our transformation runway well for and we to outlook of work are we're the over and indication expanding long a updated in in confident their the us, our all shareholder year. remain things remains ahead gains dedication the is We well time. a build shout-out momentum to Citi that for underway, to we team balance growth clear and guidance as profitable employees our the hard seeing reach, look leadership share the brand end committed market of will as Trends our and and to Citi. fuel continue a of to with see

our We’re - thankful customer me, loyal loyal and excuse and base. for our customer growing

joining for We our health care to in exciting the of stores, and this really appreciate associates and customers. in safety story. We in us mask prioritizing up interest and Thanks your will great take growth continue today.

take now are to questions. We ready your

Operator

Thank you. instructions]. [Operator

from of with Chuck Haskett. go Gordon first the Our question is Grom Please ahead. line

is open. line Your

Chuck Grom

peers, you you you but coming today, square $X on still grow improvement foot a When foot you great your picture, opportunity about the sales here. think lot your results below Nice about if model David, hit per peers are of years. can obviously us wondering be just is billion morning. to could you bucks square in the sales per your outlined front, the the around a target that off-price which in where share from help the over Good particular. if it's think shops think going this and XXXX, guys. that bigger XXX Hey,

David Makuen

and the XXXX, for X.X with fiscal store of that do - each a from shy good productivity you per XXXX. do our our north about going grown question. sales for And number number words sales a most just up how I'd roughly square X.X to we the foot. kind out average Chuck, model let Sure, price me quoted. of we has to plan the we anticipate our get per a take that Relative improved versus velocity a start of Hey, box, at pushing is, we'll I points kind lot our stab. how kind of And value units goods that thanks the considerably a of relative think of we box? goes so, price the where and on through to to

some going nice I the think is what the not been a experience mentioned, store question. ground done related we've high And the testing I are about per some we're credible your rolling for we're and part, positioned sales It’s seeing to lab that on right And really in but going where high, learning in where out all our see to individual directly seeing how lot in lifts, we're stores. only it's by our come the in that of to CTX them, square merchandise box, we foot down to Citis. based they're kind the direction. how Citi

of remainder So, what next and over that of formula, begin roll formula, to continually months the lab kind the we'll year. out that's and we're year, store few that next tweaking

rates, past, number be productivity really the and of foot, those lot staff go as a higher that the per from new sales spoken of opportunity to additional have have I make and additional think we'll have I and to think add that I in So, don't to And sense? business. topline is to accretive to large flow-through sales quoted. And the you a lot of at we should service overall you as stores square remodel we it since sales. open stores north higher That our

Chuck Grom

Yes, guess, is the that of get to the handful little within those it's that what I it of is so in color far. presume, done early CTX, probably I what productivity lift a or on you've terms some too stores of does.

David Makuen

But the early. that you another And travel show couple south. little going Yes. QX reachable experience. love It’s through walk in continue folks and just it are to say would is, got I would call, safety and we'll to couple during down you a We've northeast, what withstanding, update. a to and do we're give to a think I our what read is it, that

Chuck Grom

given great. That's Okay. larger fourth chain retails and into up your some some the XXXX, off-price taking ahead have And looking promotional out activity peers to of spoken less about of the past the over there. then week, constraints and supply quarter

and Just if prices in would views you up to curious if your areas, on certain need take also the strategy be. guys look

David Makuen

a same the steadfast remain Chuck. value that we at is, offering Yes, been A it's highlight for. there question, good we've known always

in raising sort prices. a not broad are So, aggressively we context, macro of

more bodes Citis. and I And higher think not that little well. is, six some last discovered business it's goods, in months quality, command the we retails I specific our think add a to bit over what in we able like-for-like value we're in if

trend-right that that shown goods available pay he has high for aren't will and anywhere customer us Our else. quality she definitely

that our and goods. prior better better it's a about are we're have less will about hand, improved for value in those the assortments fabrications, versus fits. fair better that pay that customer more of in It's finding raising So, years, bringing And actually most prices enhanced a cases.

like products. like So, for

our the upwards, right fair a that sales. is And higher trends we're inch continually a but definitely of portion down and it's that value AUR to trend right prices, raising not helping higher us basket enables hunting We’re thing good sort right - and contributing charge price. towards our which

Chuck Grom

Pam. And That's great. would me last be just for one for just

improving like how some the And quarter. bottlenecks significant for about little talked bit. second You pretty were it the a chain seems back the of the half outlook is supply in

want just you on the words that but put Just, your outlook that in I if Thanks. flesh front? maybe to improved What's don't and mouth, sort what's of us. out could for

Pamela Edwards

Yes. question. Good Chuck.

significant, continue headwinds and the our to that, impact. the we in of and as begin for weren't As on cost. had but And we as for were expected year accepting mentioned to call, the rest the that mitigate the the or quarter in the looking that we mentioned first last first call, month ways we last pretty saw we quarter, then be

able our place the immediately sooner, place increasing for we One and jump that's gets to ramping but not on up, sooner, program. speed. floor And most it of the the access that immediately customers to the dropship with speed, a cost, trends. gets a right only ways And were for by was to the recent the product have to meaning store it to that

And just macro has of so, from around win looking more, look up us, that perspective. that ways continue mitigate seeing. even at external ramping that for to also that will And we're rest been continue but the the headwind at to we freight the for a not as we headwinds other that all year expect a

Chuck Grom

Thanks luck. a it. guys. Good Got lot,

Operator

Thank you.

Telsey Group. Advisory from the of go Telsey with question Dana ahead. next Please line Our is

open. is line Your

Dana Telsey

the terrific Congratulations, A things. on performance. everyone, of couple

of about did post-child complexion do? see As pre? the tax transactions the did the to comp, anything credit basket did the you How do? And you think how compared as

Pamela Edwards

our so I sales Yes. overall, came from basket increase in the primary mean, size. the

So, and healthy both the the UPTs we're balance overall. very seeing a of AUR increase

perspective, we've that that the that seeing been will for something consistently continue we think into quarter. the first That’s from fall. so, And

Dana Telsey

margin gross XXX XXX to Are be Got you about on that, seeing or basis to I there it. that? around adjustment still you is Pam, points. And freight any had impact talked would the the think,

Pamela Edwards

in ramping certainly program. our the quarter, answer on able Chuck’s dropship No, the were I And and questions, of that mentioned that seen we implementation as in up we've second Yes. moderate. to based claw of to some back

XX on XXX XX down. seeing I'll the expected to and We're XXX the specific probably in we points absolutely, to being not moderate say amount, but basis we’re than exact So, better XXX it's what the XXX.

Dana Telsey

what David, associate then see you engagement, CTX with made? Is data the learnings you're getting it your being it stores, you continue as game any to And And that the plan? to Great. so are category? Is that that from sales remodel enhance format, adjustments go-forward far? with new

David Makuen

the muted Thanks, Yes, store entire changed for of vibe start a at Dana. dramatic. as is the general more us colors. the Thanks CTX with an floor We palette the some and are, the layout. of We We've be the the merchandise kind new beginning things well. more I of brand. them couple first - allow off, think words frankly, A incredible showing entire the about the background new center colors. in against and palette is change tenor entirely to, in front

from they So, play can can it's apparel of unexpected store, bit a a kind meaning on item really to on. apparel They more item. allowing section bounce even of around nice meet a kind within with the ping-ponging changing the to so an do home the and non-apparel adjacencies, an customer up

of more of make it frankly, fixtures top an store a been a I really proud outfits a the owner created that, to to the kind of more in because Trends fun re-imagined. a handbag. to and They feel, store. really, put put is, that's associates it's feel to what's tell kind empowered So, work have frankly, a you, of re-imagination together bottom every together day. resulted we've And go Citi They and feel to

local And community. They’re adoption just think, the say surprise, people through so, maybe greater as know of And you one the heard every this expected big them. than call, the me I who such on was or then, of the from the almost They the unexpected associate of we they're of experience. doors, a community. supporter course, come

cellphone they're now proud starts starts the then and show calling people. And The customer store. off moment the to so having so,

selection. seeing just frankly, new the great we’re of to out way music energy come all through So, it, this

of front-to-backdoor experience. top-to-bottom, it's the So, really re-imagination been a

And so, remodel mean, of look question. second I part no to much forward, portion very as your we the our question, of a plans. there's

imagine stores for as which new and do remodeled doing deals, we're enter So, we we're stores, for you now and ordering both stuff. can XXXX

an We’re out out we're how relaying it at and Citi roll to And exciting Trends. it's time out. stores figuring

something And kind think look of with got think pretty good experience. comment we and momentum so, of I that's this because confidence part our re-imagined forward, as here I we've comment

Dana Telsey

that planning And then this be, or anything in note, it. it we last for will be should as terms how compared different Got about? holiday to we year should of thinking year, what

David Makuen

I ever. within year we as stores. know, about up with holiday had reinventing quotient quarter. how gift a better favorite QX, And our amping started last year of Citi seasons. my Trends think of question a approached to you really great And a one great good effectively than they and really QX ‘XX, it quarter represented by the this is going be and bigger

underline would the word I So, gifts.

to for year We so are this gifted, QX. speak,

up - We’re ready have geared and joyous to festive great season. to ready a

and it. family average we're extremely is customer can't their size to thrilled. nature generous We wait for Our and giving ones, and above in loved just

fluffy gifts store. smell-good we'll And serve to throughout the but the bright, shiny, influx will sure no what So, you'll doubt make of the be a shoppers. associates nice front we're feeling ready see, good, of are holiday

Dana Telsey

Congratulations. Thank you.

David Makuen

Dana. Thanks, one. Have great a

Operator

[Operator instructions].

is question next Please go from with Hamblin Our Craig-Hallum. Jeremy ahead.

open. is line Your

Jeremy Hamblin

versus wanted see the you on could about little XXX Thanks. impressive add points of to freight some and your the QX by that, could noted XXXX performance. granular margin. improvement Pam., get improvement, I'll the context my if hoping we gross on basis parts, And I more a congratulations was offset I component maybe in compared versus product you put XXXX. that breaking down margin occupancy around levels. leverage, how then and

Pamela Edwards

you for Sure. Hi, your Jeremy, and comments. thank

gross So, that we our reporting. don't margin number include occupancy we're in

talked offset So, and initial freight little we've that of of here the the strength about. benefit by the markup, markdown, were main the the a drivers bit headwinds

increase And as seeing product think when as look certainly, AUR overall, our and rates seeing of majority about and selling lower lower but, trends, And to mentioned, better driving good we’re we I initial I inventory up. at the - number. that, that markup so, lower better the continue just having David shrink mix the which markdowns from are go levels,

are I So, increase. those main profit overall, the gross think components the of

Jeremy Hamblin

credit the additional I'm able you've the might or payments let's be in whether hoping a able that terms color weeks? a on granularity And then Okay. recent four impact in that. around child tax recent mid-July. in seen you over Have might that improvement advance positive Any it you share seen you trends since trends, little to not provide of be a call more to hit last,

Pamela Edwards

Sure.

I think the that the time back-to-school. see saw July, we uptick. in did the later during CTC following But what period was first in days also immediately we an

when optimized to so, figure in product the that. stamp out what that, the the hard food And what mix dollars, dissect notwithstanding, it's additional you is CTC,

So, the exactly wasn't but of what we is, as see material that stimulus some as I say think uptick, what will other it but dissect certainly programs been, hard worth. did I some to have was

Jeremy Hamblin

I snap And Right. start think until the October X. benefits doesn't increased

too. be could that a So development

Pamela Edwards

right. That’s Yes.

Jeremy Hamblin

been or of where perform. there's like Northeast understand in tremendous And So, markets, going those less X,XXX previously developed a little skepticism wanted lot particularly California opportunity. there's is units of I think I how the as well, know performance. the I regional towards it the to seems whether it's some might markets some in growth about come also to a

how little northeast to the markets base. in David So, your AUVs are was color, your California, hoping more the performing or provide could relative that - overall on you a the I

David Makuen

question. you. Good. Yes. Jeremy. Hey, Thank Good

not would populated focused to, off, current and the store New To by Jersey, very mix one. the markets. that sparsely your the growth boroughs in as about first markets, of densifying new be a be six point, that are Trends well and circle on next XX sparsely York next going or foreseeable entering new perspective, of California, store we some XX significantly. grow New from call we densifying months, And future, So, let's a yet have Citi be as in entries. can will it both we the But months a a stores

lot we're the markets, is to urban what's and York, Those with don't than more, rings they've been an performance And within of those the in New York, stores, and of what's fairly of our of But over customer Latinx New on in come a encouraging our hard nature. stores. as we've seen now. have you Citi quarters, densely more really, working in incredible can lot outsized centric terms since What cite are all are is Latinx towards is couple new interesting all I - pointed populated, a In we capture last stores which that out, the better of really those performance share can strong. California those market, is, stores leaning about really has I closer fast geographies. to you bigger

right And I I where, So, examples, happen one with opportunity throughout other an to that mentioned And when for I even years the pick Trends company, what up. Jeremy, there about to been seeing and Citi US. this excited think we're and And awareness market brand a to we're California. fertile as incredible joined a eyes there's Citi I is XX Trends, enter of marketplaces abound nameplate. before it's in bit we've we out that. think the as around There’s those use our template of first developing the XX gain though share I'm awareness years,

learnings example, is away market markets of building the a We’re up undergoing store, the and some awareness, launched of really we lab kind lab around sign general cool. is seeing conversion we're traffic neat go. And for then influences actually little bit we've that me the and where a pick store, in which to which and a

in good some the tea Does there. that help? leaves So, things

Jeremy Hamblin

that me that to has we're least includes or going stimulus at going QX you in you pretty it does. we're some the think kind type for results. QX in I AUVs to you Obviously, - your put have extraordinary impressive. And on is, where track noted my same then next had not guidance for And available money here year. one Yes, of don't of $X.X Really - last range. sure from million very

at profitability? In kind in and ’XX, this three-year marks terms mark, now to your grow you million sales that would terms of of that point $X.X early hitting see of that expect of AUV in these you're

David Makuen

detail, we're I with which this we think to XXXX your without at way, it share look not insights question. any Good referring Look, specific to rate. Jeremy, this able at

team we've comebacks, things is in number an done to that constant second one say bunch and of ourselves, visitation is, of the we've really our our come maintain brand. back the a a new right? the As stores. to as loyalty will. of rate people thing have if And today, a The we extraordinary good that couple purchase rates their store last got lapsed months that to it's we customers, suggest amount attrited formerly comp, that That’s look captured through you and have over at have job we and job, that our we've through indicators surveys

execute it's So, newbies they keeping and in to through of hadn't sure drive relationship been store teams So folks big on, brand developing, while. to a their that And as ours the moving this I focus our to focused paying really, are think mentioned to folks. and purpose-led a make comes field them it doors what attention down in really our right? I with managers the kind that's today, really the think It's coming to the talk those really or the culture fold, our seen job in well. we're keep is of I in are

belief. our Here's

And customers lapsed assortments we Our the those at new deliver in great that's improved job belief ultimately. and is and values, continue our on-trend customers, if fold. to stay will comeback enhanced

either the store. markets a we the being, or to But experience continue will time things the building continue And that through I in good that for left you. sales a as we're update to we'll many store. out average focused new per bring the rate some conference. believe assortments, store mean January remodeled rolling ICR details our right CTX And additional many, on So, positive we'll said, in at run forth of

Jeremy Hamblin

the for color. Thanks wishes. Best

David Makuen

day. Have Thanks, a Jeremy. great

Operator

you. Thank

Benchmark. of Our line go John the Lawrence Please is question with ahead. next from

open. is line Your

John Lawrence

Yes. Thank you. Congratulations, David.

David Makuen

Thank you, John. Good to hear you.

John Lawrence

Yes, thanks.

of looked Just can a previously you have picture but to bigger started Citi questions at you came pallet. couple and of asked, go that some Trends, when assortment questions the and back and sort you

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David Makuen

could customer of and our is Great the that our which question, trends Our way argue, and freshness. a it and offer one them, within John, most, to we job do about with continue all evolution from work Citis assortments assortment, right? deliver our and in newness of matters back resonate to the that

out, great with many, And it's and our also amazing men's really ones. relationships for team teams. strengthening can really all I'll example, men's partners, of we've vendors now, that has buy to tell And shout-out the want? adult, And can And I his done really an the on her vendor in my been world. new only about ecosystem hey, we give journey our does understand of age, the serve box. up the, would not size, non-parent, Citi. current watch. Citis example, you above. the out in that a many sort our I'm What my have mayor guy in all figuring And really a been opening of the eye-opening different but guy? at all life How I And Lisa really on job rounded stage, those his constituencies last better to April millennial, a all our for actually parent, to Based that So, it's his of team. done been from

that's team all you’ve our customer. and way I have And what never the As rest keep your a on that and on humble your solutions right to to laurels. tests got think and we it's you And learn action-oriented and toes their know, stay for an moving about. on

is ahead. to I has We as So, We our grown need here months and time. in something we rung the all bell. it think And business grow the be said I our without them. business and see in they we're do years really the vendor their call, thanking partners wouldn't the And and excited.

John Lawrence

Jersey as terms acquire when to in Citis, data of for California continue versus about you And a information customer, different store you is about New and store assortment? that talk a this insight. much Great. Thanks the how

David Makuen

that and makes question, to off very terms you the easier operate, we boxes all. a I Today, works. step in is that business at It's continue been would to - differences. tell and it the of John, a a similar, It’s working good of will pedal manager we that geographical little and won't

it do percent preferences? tweaked a Is African-American over store melting as What and the do be centric? previous tranches to that to their African-American of Jersey them? figure opportunity little differences that's a how of customers? in for for something differences, dial Latinx I time. LA of tweak come your those into little And box a a then store? should a three going a combo that's customers where to the there will that bit XXX%. centric lastly, just And I’ve looking out, the pot forward materials, store, for Newark, our be New and - store to those we're So, and Same And continue Is we and How showcased the the Latinx where that's answer. play. evolve curate point, customer. tastes customer, However, think between we up is to Hawthorne the outside of

the to deliver we continue is tastes know, you have lots assortments, successful those product through more buckets, right of make As our to preferences. but each aim in productive stores their of them and

John Lawrence

the Thanks good and Great. luck. Congrats insight. for

David Makuen

a Have great John. Thanks, day.

Operator

speakers. questions And further you. the on pass there back lines. are to it I'll Thank phone no our

David Makuen

for tuning We'll call. see safe Bye-bye. today. Stay healthy. everybody, Thanks, you the in and next at

Operator

good Have day. for please you disconnect participation, and a Ladies that We your you. gentlemen, thank your Thank lines. and call. you conclude ask that does today's

Citi Trends (CTRN) 24 Aug 212021 Q2 Earnings call transcript