Consistent Sales Growth
Citi Trends reported a 10.8% increase in comparable store sales for Q3, marking the fifth consecutive quarter and fifteenth straight month of strong comp growth. Total sales were up 10.1% compared to the previous year.
Positive Customer Engagement
The company saw increased customer traffic across all store volume groups and geographies. Continued focus on the African American demographic led to strong performance in children's, men's, and basic apparel categories.
Inventory and Supply Chain Efficiency
Inventory dollars decreased by 3.1% compared to last year, with improved supply chain processes leading to higher in-store inventory efficiency.
Strategic Store Expansion
Citi Trends remodeled 24 stores in Q3 and opened three new ones, bringing the total to 593 locations. Plans to open about 25 new stores in 2026 and 40 stores in 2027 were outlined.
Financial Performance and Outlook
Adjusted EBITDA for Q3 was a loss of $2.9 million, in line with expectations and better than the previous year's loss. Guidance for full-year EBITDA was raised to $10 million to $12 million.
Technological Advancements
Implementation of a new CRM and loyalty platform is in progress to enhance customer engagement and long-term value.