Citi Trends, Inc. Announces Executive Transition

Names Bruce Smith Acting CEO

Appoints Ed Anderson as Executive Chairman

SAVANNAH, Ga.–(BUSINESS WIRE)–Citi Trends, Inc. (“Citi Trends” or the “Company”) (NASDAQ:CTRN) today
announced that its Board of Directors (the “Board”) has appointed Bruce
Smith, the Company’s Chief Operating Officer and Chief Financial
Officer, as Acting Chief Executive Officer, and Ed Anderson, as
Executive Chairman, effective immediately. Jason Mazzola has resigned as
CEO and a director of the Company to pursue another opportunity.

The Board has commenced a formal search process to identify a permanent
CEO. Although the timing of the completion of this process cannot be
determined with certainty, the Board’s objective is to make an
appointment as soon as practical while allowing time for a thorough
search. Mr. Smith, who will continue to serve as COO and CFO during the
search process, has had a broad role with the Company’s management team
during his tenure and will work closely with Mr. Anderson to manage Citi
Trends’ operations and advance the Company’s long-term business strategy.

“I look forward to working closely with Bruce, who has demonstrated an
important range of skills and insights during his 10 years with the
Company, and the rest of the leadership team to create immediate and
lasting value for our stockholders, customers and employees,” said Mr.
Anderson. “We have begun a search for a permanent CEO, and will, of
course, strongly consider Bruce for this role given his qualifications
and excellent service to the Company over the years. Citi Trends’ future
is bright and everyone within the organization remains focused on
delivering outstanding product that excites our customer, fuels loyalty
and drives sales.” Mr. Anderson continued, “We appreciate Jason’s
contributions to the Company during his tenure and wish him well in his
future endeavors.”

“Having worked alongside Ed for many years, in addition to having
developed our strategic plan with Jason and the management team, I
believe we are well positioned to capitalize on the many opportunities
that lie ahead,” said Mr. Smith.

John Lupo, lead independent director, stated, “Ed is a proven leader who
has made significant contributions to Citi Trends during his more than
15 years with the Company. His intimate knowledge of the Company and our
industry make him ideally suited to work with Bruce, a talented
executive with significant expertise. I am confident they will continue
to advance our strategic priorities put in place to drive sustained
growth and profitability, which the Board would expect to be reflected
in the market valuation of our stock and the delivery of solid returns
to our shareholders. With this strong foundation in place, the Board is
committed to Citi Trends’ long-term business strategy and confident in
management’s ability to execute during this transition and beyond.”

Mr. Smith has been the CFO of Citi Trends since April 2007 and has
served as its Chief Operating Officer since March 2015. He brings more
than 35 years of experience in strategic and financial management and
operations. Prior to joining Citi Trends, Mr. Smith served as CFO and
Executive Vice President of Hancock Fabrics Inc., a specialty retailer
of crafts and fabrics. Prior to that, he served as CFO and Executive
Vice President of discount retailer, Fred’s Inc. Mr. Smith is a
Certified Public Accountant.

Mr. Anderson has served as a Citi Trends director since 2001 and as
Chairman of the Board since May 2006, including holding the Executive
Chairman title on three occasions. He served as CEO of the Company from
2001 to April 2009 and returned to that position from January 2012 to
March 2015. From 1997 to 2001, Mr. Anderson was Chief Financial Officer
of Variety Wholesalers, Inc., an operator of discount stores. Prior to
1997, Mr. Anderson served as Chairman, President and Chief Executive
Officer of Rose’s Stores, Inc., a discount retailer.

As the leadership transitions, the Board has reduced the size of its
Board of Directors to six members, from seven members, effective

About Citi Trends

Citi Trends, Inc. is a value-priced retailer of urban fashion apparel
and accessories for the entire family. The Company operates 538 stores
located in 31 states. Citi Trends’ website address is

Forward-Looking Statements

All statements other than historical facts contained in this news
release, including statements regarding our future financial results and
position, business policy and plans and objectives of management for
future operations, are forward-looking statements that are subject to
material risks and uncertainties. The words “believe,” “may,” “could,”
“plans,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and
similar expressions, as they relate to Citi Trends, are intended to
identify forward-looking statements. Investors are cautioned that any
such forward-looking statements are not guarantees of future performance
or results and are inherently subject to risks and uncertainties, some
of which cannot be predicted or quantified. Actual results or
developments may differ materially from those included in the
forward-looking statements as a result of various factors which are
discussed in Citi Trends filings with the Securities and Exchange
Commission. These risks and uncertainties include, but are not limited
to, uncertainties relating to economic conditions, growth risks,
consumer spending patterns, competition within the industry, competition
in our markets, the ability to anticipate and respond to fashion trends
and the outcome of our current proxy fight and any other actions of
activist stockholders. Any forward-looking statements by the Company are
intended to speak only as of the date such statements are made. Except
as required by applicable law, including the securities laws of the
United States and the rules and regulations of the Securities and
Exchange Commission, Citi Trends does not undertake to publicly update
any forward-looking statements in this news release or with respect to
matters described herein, whether as a result of any new information,
future events or otherwise.

Important Additional Information

Citi Trends, its directors and certain of its executive officers may be
deemed to be participants in the solicitation of proxies from Citi
Trends stockholders in connection with the matters to be considered at
Citi Trends’ 2017 Annual Meeting. Citi Trends intends to file a proxy
statement with the U.S. Securities and Exchange Commission (the “SEC”)
in connection with any such solicitation of proxies from Citi Trends

Detailed information regarding the identity of potential participants,
and their direct or indirect interests, by security holdings or
otherwise, will be set forth in the proxy statement and other materials
to be filed with the SEC in connection with Citi Trends’ 2017 Annual
Meeting. Information regarding the direct and indirect beneficial
ownership of Citi Trends’ directors and executive officers in Citi
Trends securities is included in their SEC filings on Forms 3, 4 and 5,
and additional information can also be found in Citi Trends’ Annual
Report on Form 10-K for the year ended January 30, 2016, filed with the
SEC on April 13, 2016 and its Quarterly Reports on Form 10-Q for the
first three quarters of the fiscal year ended January 28, 2017 filed on
May 31, 2016, August 29, 2016 and December 5, 2016, respectively.
Stockholders will be able to obtain any proxy statement, any amendments
or supplements to the proxy statement and other documents filed by Citi
Trends with the SEC for no charge at the SEC’s website at
Copies will also be available at no charge at the Investor Relations
section of our corporate website at


Phil Denning, ICR
Goldfarb, Chuck Garske and Teresa Huang
Okapi Partners