CTRN Citi Trends, Inc.

Risks

• Our success depends on our ability to anticipate, identify and respond rapidly to changes in consumers’ fashion tastes, and our failure to adequately evaluate fashion trends could have an adverse effect on our business, financial condition and results of operations.
• Our ability to attract consumers to our stores depends on the success of the strip shopping centers where our stores are located.
• We may not be able to sustain our growth plans or successfully implement our long-term strategic goals.
• We could experience a reduction in sales if we are unable to fulfill our current and future merchandising needs.
• Failure to properly manage and allocate our inventory could have an adverse effect on our business, sales, margins, financial condition, and results of operations.
• Our sales could decline as a result of general economic and other factors outside of our control, such as changes in consumer spending patterns and declines in employment levels.
• We do not sell our products through the internet. As the retail industry experiences an increase in online sales, our sales could be adversely affected.
• Adverse trade restrictions may disrupt our supply of merchandise. We also face various risks because much of our merchandise is imported from abroad.
• We rely on numerous third parties in the supply chain to produce and deliver the products that we sell, and our business may be negatively impacted by their failure to comply with applicable law.
• A significant disruption to our distribution process or southeastern retail locations could have an adverse effect on our business, financial condition and results of operations.
• If we fail to protect our name and brand in the marketplace, there could be a negative effect on our business and limitations on our ability to penetrate new markets.
• If we fail to implement and maintain effective internal controls in our business, there could be an adverse effect on our business, financial condition, results of operations and stock price.
• Failure to attract, train, assimilate and retain skilled personnel could have an adverse effect on our financial condition.
• Our business could be negatively affected as a result of a proxy fight and the actions of activist shareholders.
• Increases in the minimum wage could have an adverse effect on our operating costs, financial condition and results of operations.
• Failure to comply with legal requirements could have an adverse effect on our financial condition and results of operations.
• Changes in government regulations could have an adverse effect on our financial condition and results of operations.
• Any failure of our management information systems or the inability of third parties to continue to upgrade and maintain our systems could have an adverse effect on our business, financial condition and results of operations.
• Failure to maintain the security of employee, customer or vendor information could expose us to litigation, government enforcement actions and materially impact our reputation and business operations.
• Our sales, inventory levels and earnings fluctuate on a seasonal basis, which makes our business more susceptible to adverse events that occur during the first and fourth quarters.
• If we fail to successfully implement our various marketing efforts or if our competitors are more effective with their programs than we are, our revenue or results of operations may be adversely affected.
• We experience fluctuations and variability in our comparable store sales and quarterly results of operations and, as a result, the market price of our common stock may fluctuate substantially.
• Our stock price is subject to volatility.
• We cannot provide any guaranty of future cash dividend payments or that we will continue to actively repurchase our common stock pursuant to a share repurchase program.
• Provisions in our certificate of incorporation and by-laws and Delaware law may delay or prevent our acquisition by a third party.