Analysts had predicted Citi Trends would earn $0.09 per share on nearly $200 million in sales in the second quarter of 2022, but in fact, Citi Trends lost money for the quarter -- $0.31 per share -- and its sales fell short at only $185 million. Perhaps most disappointing was the fact that earnings -- which were already expected to be down significantly from last year's $1.36-per-share quarterly profit -- didn't just fall but actually flipped from black to red ink with the $0.31 per share loss. Recapping the results, CEO David Makuen in a statement admitted that the quarter was "challenging," and blamed "extraordinary pressure from widespread inflation" for decreased foot traffic in Citi Trends' stores, and decreased spending by those shoppers who did show up.
Thank you for joining us on Citi Trends second quarter 2022 earnings call. On our call today is our chief executive officer, David Makuen; and chief financial officer, Heather Plutino. You should be aware that prepared remarks today made during this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Citi Trends (CTRN) delivered earnings and revenue surprises of -263.16% and 9.71%, respectively, for the quarter ended July 2022. Do the numbers hold clues to what lies ahead for the stock?