Citi Trends, Inc. (NASDAQ:CTRN) Q2 2023 Earnings Call Transcript

That kind of kicks in, like I mentioned a few minutes ago, in ’24. From an expense side, tough to — if you consider kind of “markdown expense and expense”, which we should, yes, it should, in theory, impact that, which we’re looking forward. It might even impact freight expense a little bit because it might inform us how we better distribute out of our DCs. Still, again, very early, but as you can tell by my answer, we’re thinking about it really holistically. First and foremost, it’s sales driving. But then we’ll see, I believe, benefits kind of sprinkled throughout different functions in the organization, including others world. It has a finance team benefit as well. So any event, we’re looking forward to all these impacts as they come on, and it will just take a little bit of time as we kind of phase into it.

Does that make sense?

John Lawrence: Yes, thanks. Thanks for that. Just a follow-up. The never-ending question you get, I’m sure is, can you give us an update on how the remodels are doing and as some of those comp against the year before, how are they comping against prior history?

Heather Plutino: Yes, John, I’ll take that. We remain pleased with our remodel program. Right now, we’ve got 15% of our fleet in CTX format. And then we like to look, our associates like to look and our customers like the look. We still see a lift in the mid- to high single-digit range for a period of time after the remodel on a year-over-year comp basis, they start to perform kind of like their market, right? I mean, they perform a bit better, but that degree of delta starts to come down over time, because our customers are getting used to our store, and we’re comping over it, right? So still something that we’re really excited about. We love the look, like I said. And we’ll keep looking for opportunities to refresh our stores.

John Lawrence: Great. Thanks. Congrats.

Heather Plutino: Thank you, John.

Operator: There are no further questions on the line at this time. I’ll turn the call back to David for closing remarks.

David Makuen: Thanks, Chris. Thanks, everyone, for joining us today. Have a great remainder of the summer, and we’ll see you on the next call. Take care.

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