SAVANNAH, Ga. (AP) — Discount clothing and accessories retailer company Citi Trends reported worse-than-expected second-quarter results in spite of narrowing its losses.
Shares in the company tumbled more than 16 percent in morning trading as it reported a loss of $7.9 million, or 54 cents per share, for the period ended July 28. A year earlier it lost $10 million, or 69 cents per share. Analysts polled by FactSet expected a smaller loss of 44 cents per share.
The prior-year period included a $1.6 million asset impairment charge related to the property and equipment at 21 underperforming stores.
Revenue rose 2 percent to $132.3 million, against expectations of $133.9 million, from $130.2 million a year earlier.
Citi Trends Inc., based in Savannah, Ga., had 512 stores at quarter's end. Revenue at stores open at least a year dropped 4 percent. This metric is a key indicator of a retailer's health because it excludes results from stores recently opened or closed.
The company's stock plunged $2.44, or 16.6 percent, to $12.30. Over the last year, the shares have traded in a range of $7.87 to $16.42.
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