2. 2
Cautionary Note about Forward-Looking Statements
This presentation contains “forward-looking statements” within the
meaning of the federal securities laws and is intended to qualify for the
Safe Harbor from liability established by the Private Securities Litigation
Reform Act of 1995, including statements regarding expected sales, the
outlook for Citi Trends’ markets and the demand for its products. These
projections and statements are based on management’s estimates and
assumptions with respect to future events and financial performance
and are believed to be reasonable, though are inherently uncertain and
difficult to predict. Actual results could differ materially from those
projected as a result of certain factors. A discussion of factors that
could cause results to vary is included in the section entitled “Risk
Factors” in the Company’s most recent Annual Report on Form 10-K
filed with the Securities and Exchange Commission.
3. 3
• Retailer of off-price, urban fashion apparel
• Large customer base with favorable demographics
• Differentiated merchandise for the entire family
• Current fashions and brands at value prices
• Over 500 stores with dominant presence in the Southeast
4. 4
2000 2012 2017
$599.8
$1,037.7
$1,306.6
Favorable demographics
2000 2012 2020
35.8
39.7
44.8
• Our concept, merchandise and locations are tailored to our
core customer
– 70% African-American
– $20,000 to $40,000 median household income
Significant buying power
Source: U.S. Census Bureau Source: Selig Center for Economic Growth
African-American Population (in millions) African-American After-tax Income (in billions)
5. 5
4.4%
3.4%
Our customer has a greater propensity to purchase apparel…
Source: U.S. Department of Labor (2012 Consumer Expenditure Survey)
Source: Initiative for a Competitive Inner City and Pricewaterhousecoopers LLP.
…and has a greater focus on brands and fashion
2012 Apparel Expenditures as % of Annual Income
52%
67%
30%
42%
Trend Setting Fashions Unique Merchandise
African-Americans
Average U.S. Consumer
African-Americans
Average U.S. Consumer
8. 8
• Strong sourcing relationships with over 1,700 suppliers
• Buying team with average of 15+ years retail experience
• Partnership approach with vendors:
– Pay on-time
– Avoid typical retail concessions
• Result: Ability to purchase current fashions at compelling
prices:
– Off-price & close-out buys in-season
– Next Season Buys (NSB) – close-outs purchased for next season
– Up-front
9. 9
Existing store base of 529 locations
Corporate Headquarters
Distribution Center
New markets entered in FY 2005 – 2015
Buying Office
48
6
34
6
11
25
50
6329
42
18
45
20
6
15 28 3
22
18
6
5
1
10
1
3
2
4
1
2
2
3
15. 15
2012
($ in millions, except per share data) 2015 2014 2013
Sales $683.8 $670.8 $622.2
Gross Profit $267.0 $252.4 $227.8
Gross Margin 39.0% 37.6% 36.6%
SG&A $224.2 $221.0 $206.1
SG&A as % of Sales 32.8% 32.9% 33.1%
Adjusted EBITDA $ 42.8 $ 31.4 $ 21.6
Income Per Share $ 1.03 $ 0.60 $ 0.03
• Gross margin improvement due to stronger inventory management and increase in
opportunistic next-season-buys
• Continued expense leverage
• 72% increase in income per share in 2015
16. 16
2012
($ in millions, except per share data) 1st Half 2016 1st Half 2015
Sales $348.9 $348.8
Gross Profit $136.0 $138.1
Gross Margin 39.0% 39.6%
SG&A $114.4 $111.5
SG&A as % of Sales 32.8% 32.0%
Adjusted EBITDA $ 21.6 $ 26.6
Income Per Share $ 0.59 $ 0.75
• 2.0% comparable store sales decline
• Gross margin – 60 b.p. decline due equally to higher markdowns, shrink & freight
• Expenses – 2.6% increase from new stores and normal inflation, partially offset by lower
incentive compensation expense
17. 17
As of
July 30, 2016
Cash & Investment Securities $ 101.6
Total Debt* $ 0.0
Total Stockholders' Equity 219.5
Total Capitalization $219.5
* $50 million credit facility available; unused
($ in millions)