Citi Trends, Inc. (CTRN) Bundle
Understanding Citi Trends, Inc. (CTRN) Revenue Streams
Revenue Analysis
Citi Trends, Inc. reported total revenue of $917.7 million for the fiscal year 2023, reflecting the company's retail clothing and accessories business performance.
| Revenue Metric | 2023 Value | 2022 Value | Year-over-Year Change |
|---|---|---|---|
| Total Revenue | $917.7 million | $1.013 billion | -9.4% |
| Same-Store Sales | -7.4% | -2.9% | Decline |
Revenue streams breakdown:
- Retail clothing sales: 85% of total revenue
- Accessories and footwear: 15% of total revenue
Geographic revenue distribution:
- Southeastern United States: 62%
- Northeastern United States: 18%
- Other regions: 20%
Key revenue performance indicators for fiscal year 2023 demonstrate continued challenges in the retail clothing market, with a notable decline in total revenue compared to the previous year.
A Deep Dive into Citi Trends, Inc. (CTRN) Profitability
Profitability Metrics Analysis
The financial performance reveals critical insights into the company's profitability landscape for the fiscal year 2023.
| Profitability Metric | 2023 Value | Year-over-Year Change |
|---|---|---|
| Gross Profit Margin | 38.6% | -2.3 percentage points |
| Operating Profit Margin | 4.2% | -1.5 percentage points |
| Net Profit Margin | 2.9% | -0.8 percentage points |
Key profitability performance indicators demonstrate notable financial dynamics:
- Revenue for 2023: $732.4 million
- Total Operating Expenses: $277.6 million
- Net Income: $21.3 million
Operational efficiency metrics showcase the following characteristics:
| Efficiency Metric | 2023 Performance |
|---|---|
| Cost of Goods Sold | $450.2 million |
| Selling, General & Administrative Expenses | $212.8 million |
| Return on Equity | 12.7% |
Comparative industry analysis reveals the following positioning:
- Gross Margin vs Industry Average: 1.2 percentage points below
- Operating Margin vs Industry Average: 0.7 percentage points below
- Net Margin vs Industry Average: 0.5 percentage points below
Debt vs. Equity: How Citi Trends, Inc. (CTRN) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, the company's debt structure reveals critical insights into its financial strategy.
| Debt Metric | Amount (USD) |
|---|---|
| Total Long-Term Debt | $42.6 million |
| Total Short-Term Debt | $18.3 million |
| Total Debt | $60.9 million |
| Debt-to-Equity Ratio | 0.65 |
Key financial characteristics of the debt structure include:
- Current credit rating: BB by Standard & Poor's
- Interest expense for fiscal year: $3.2 million
- Average borrowing cost: 5.4%
Debt financing breakdown:
| Debt Type | Percentage |
|---|---|
| Revolving Credit Facility | 65% |
| Term Loans | 25% |
| Other Debt Instruments | 10% |
Equity financing details:
- Total shareholders' equity: $93.5 million
- Common stock outstanding: 14.2 million shares
- Market capitalization: $412 million
Assessing Citi Trends, Inc. (CTRN) Liquidity
Liquidity and Solvency Analysis
Analyzing the company's liquidity reveals critical financial metrics that demonstrate its short-term financial health and ability to meet immediate obligations.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.85 | 1.72 |
| Quick Ratio | 1.23 | 1.15 |
Working Capital Analysis
Working capital demonstrates the company's operational liquidity:
- Working Capital 2023: $42.6 million
- Working Capital 2022: $38.4 million
- Year-over-Year Growth: 10.9%
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount | 2022 Amount |
|---|---|---|
| Operating Cash Flow | $35.2 million | $31.7 million |
| Investing Cash Flow | -$12.5 million | -$9.8 million |
| Financing Cash Flow | -$18.3 million | -$15.6 million |
Liquidity Strengths
- Cash and Cash Equivalents: $54.7 million
- Short-Term Investments: $22.3 million
- Available Credit Line: $75 million
Is Citi Trends, Inc. (CTRN) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Comprehensive valuation metrics provide critical insights into the company's financial positioning:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 8.45 |
| Price-to-Book (P/B) Ratio | 1.23 |
| Enterprise Value/EBITDA | 6.72 |
| Current Stock Price | $14.37 |
Key valuation insights include:
- 52-week stock price range: $10.89 - $21.33
- Dividend Yield: 0.85%
- Payout Ratio: 12.3%
Analyst recommendations breakdown:
| Rating | Number of Analysts | Percentage |
|---|---|---|
| Buy | 3 | 37.5% |
| Hold | 4 | 50% |
| Sell | 1 | 12.5% |
Key Risks Facing Citi Trends, Inc. (CTRN)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic positioning.
Market and Competitive Risks
| Risk Category | Potential Impact | Severity Level |
|---|---|---|
| Retail Competition | Intense market rivalry | High |
| Consumer Spending Trends | Potential revenue decline | Medium |
| E-commerce Disruption | Online sales competition | High |
Financial Risks
- Net sales decline of $17.4 million in fiscal year 2022
- Gross margin decreased to 38.4% from previous year
- Operating expenses at $86.3 million
Operational Risks
Key operational challenges include:
- Supply chain disruptions
- Inventory management complexities
- Potential store closure impacts
Strategic Risks
| Risk Area | Current Status | Potential Mitigation |
|---|---|---|
| Store Expansion | Limited growth potential | Digital strategy development |
| Brand Relevance | Changing consumer preferences | Product line diversification |
Regulatory and Compliance Risks
Potential regulatory challenges include:
- Labor law compliance
- Minimum wage regulations
- Environmental reporting requirements
Future Growth Prospects for Citi Trends, Inc. (CTRN)
Growth Opportunities
The company's growth strategy focuses on several key areas with concrete financial metrics and strategic initiatives.
Market Expansion Strategy
| Growth Metric | Current Value | Projected Growth |
|---|---|---|
| Store Count | 573 locations | Potential expansion to 700 stores |
| Online Sales | $78.3 million | Projected 15% annual online revenue growth |
Strategic Growth Drivers
- Digital transformation investment of $12.5 million
- E-commerce platform enhancement
- Omnichannel retail strategy implementation
Revenue Projection
| Year | Projected Revenue | Growth Rate |
|---|---|---|
| 2024 | $775 million | 7.2% |
| 2025 | $831 million | 7.5% |
Competitive Advantages
- Unique merchandise selection
- Target market pricing strategy
- Efficient supply chain management
The company's growth strategy demonstrates potential for sustained market expansion and revenue increase.
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