Citi Trends Inc. (CTRN) has declared the appointment of Kenneth (Ken) Seipel as Chief Executive Officer, effective from November 18. Concurrently, the Board has named Peter Sachse, who currently serves as the Executive Chairman of the Board, to the position of Chairman.
The company has also released its preliminary third-quarter financial results, anticipating an adjusted EBITDA loss of $3.3 million, a figure that accounts for strategic expenditures on comprehensive customer and market research, as well as investments to enhance operational processes.
The firm's gross margin is forecasted to be 39.8 percent, reflecting an increase of 160 basis points compared to the previous year. Sales are projected to reach $179.1 million, with a growth of 5.7 percent in comparable store sales.
These positive sales and gross margin figures are attributed to an improved product line, better allocation strategies, and a boost in customer traffic. The third-quarter sales performance is expected to surpass the company's earlier forecast for second-half comparable store sales, which had anticipated results ranging from stable to modestly positive in comparison to the prior year.
As for Seipel's appointment, the company highlighted that he has served as the Interim CEO of Citi Trends since June 1, 2024, and has been a member of the Board of Directors since 2019.
Peter Sachse expressed satisfaction with the company's sales and gross margin achievements in Q3 2024, stating, "We are pleased with our sales and gross margin performance in Q3 2024 and are excited to appoint Ken to the permanent role of CEO. In a short time, Ken has enhanced the Company's business performance. Ken's extensive retail experience and his proven history of leading substantial value creation as a CEO instill confidence that he will successfully formulate and implement Citi Trends' long-term strategic plan to significantly increase our company value."
