Citi Trends, Inc. (NASDAQ:CTRN) Q4 2023 Earnings Call Transcript

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Heather Plutino: [Hi, John, it’s good to hear from you] (ph). Appreciate the question. So yeah, you were right in the heart of it, right? With the ice and cold weather in parts of the country that are just not prepared for that, we definitely saw a holdback in traffic. And we’ve studied it, we’ve stared at it. We think that based on our calculations, which is never an exact science, that the sales were impacted to the degree that we would have trended similarly to the levels exiting New Year as whether or not that weather holdback not occurred. So recall, our holiday sales release, the 10 weeks of holiday included in that release, our comps were negative 0.3%, near flat.

John Lawrence: Great. Thanks.

Heather Plutino: Okay, great. Thank you. Go ahead.

John Lawrence: Yeah, excuse me. David, when you look at all the things that occurred during the fourth quarter, all the progress, what would you say was, as far as the system is concerned, I know you were getting at the third quarter, we talked about some of that at ICR, what would you say as you continue through that period up to now, what is the system telling you, market, and what are you [indiscernible] and learning from at this point in time?

David Makuen: Hey, John, mind if I clarify, what do you mean by system? I’m going to make sure I understand.

John Lawrence: I’m sorry, the ERP, the allocation.

David Makuen: Okay, got you. Yeah, let me give you a quick update on where we are. Similar to probably what I mentioned in the call, the launch went successfully end of August which we reported in the November call. And like with any new system, we’ve gotten to know it more and more. Users have become more accustomed to how to apply it to our business as the weeks and months have progressed. And we’re kind of sitting right at the six month mark in a really good place. We used it to our benefit, as I mentioned in the main call today, to fuel some really good insights and actions that impacted Q4, and most importantly, some actions that impacted our Q1 2024 setup. So we’re more or less exactly on track with what we knew would be the case in terms of learning curve and getting to know and use the system.

I think the most exciting thing coming out of it is quite simply insights. I mentioned in the call this idea of a new data platform that’s included typically in a good ERP system and we’re leveraging that data platform literally down to the store SKU, week level if necessary to drive different decisions around allocations, replenishment, and that idea of sort of is it in the right store? Is it in the right place at the right time, et cetera? So we are, as you can tell by my energy, we’re really pumped about it. And we think it’s over time, like we have stated many times, over time it’ll be a really nice benefit to the top line and bottom line of our business. And we’re cooking with gaps.

Operator: Mr. Makuen, there are no further questions at this time.

David Makuen: Thanks, Frank. Thanks everybody for joining us today. Happy upcoming Easter and Passover. We’ll see you next time. Bye-bye.

Operator: That does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines. Have a great day everyone.

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