Savannah, Ga. — The board of directors of Citi Trends Inc. has appointed Kenneth (Ken) Seipel as chief executive officer, effective Nov. 18, 2024. Seipel has been serving as the interim CEO of Citi Trends since June 1, 2024, and on the board of directors since 2019. Concurrently, the board appointed Peter Sachse, the current executive chairman of the board, as chairman of the board.
In addition, the company is announcing preliminary Q3 2024 results with sales of $179.1 million and comparable store sales growth of 5.7% vs. Q3 2023. Q3 sales results are expected to be above the company’s previous outlook of second half comparable store sales results flat to up low single digits compared to prior year. Gross margin for Q3 2024 is expected to be 39.8%, an increase of 160 basis points compared to Q3 2023.
“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,” says Sachse. “In a short period of time, Ken has improved the company’s business performance and is laying the groundwork for long term shareholder value creation. Ken’s deep retail experience and his strong track record of leading significant value creation as CEO in past companies gives us confidence that he will develop and execute Citi Trends’ long term strategic plan to more than triple our company value.”
Adds Seipel: “Citi Trends is an exciting growth opportunity. The company is uniquely positioned with nearly 600 stores serving our core African American customers in their neighborhoods, creating a defensible moat against competition. We are fortunate to have a loyal and frequent base of shoppers.”
Seipel is a senior retail executive with experience in public and private equity backed ownership companies along with Fortune 500 retail company background. From 2018 to 2021, he served as CEO and co-owner of West Marine, the world’s largest retailer of boating supplies. In 2011 and 2012, Seipel served as president and COO of Wet Seal Inc. Earlier in his career, he was executive vice president of operations for North America at the Old Navy division of Gap, Inc. Seipel began his career with JCPenney in operations and merchandise buying.
Citi Trends, Inc. is a value-priced retailer of urban fashion apparel, accessories and home goods for the entire family. The company operates 592 stores located in 33 states. For more information, visit www.cititrends.com.
SOURCE: Citi Trends, Inc.