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Citi Trends (CTRN)
NASDAQ:CTRN
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Citi Trends
(NASDAQ:CTRN)
Rating:60Neutral
Price Target:
$29.00
▲( 12.40% Upside)
Citi Trends (CTRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$213.57M
Dividend YieldN/A
Average Volume (3M)70.73K
Price to Earnings (P/E)―
Beta (1Y)1.31
Revenue Growth0.69%
EPS Growth-254.98%
CountryUS
Employees2,600
SectorConsumer Cyclical
Sector Strength72
IndustryApparel - Retail
Share Statistics
EPS (TTM)-1.54
Shares Outstanding8,277,733
10 Day Avg. Volume70,813
30 Day Avg. Volume70,728
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.69
Price to Sales (P/S)0.00
P/FCF Ratio-13.61
Enterprise Value/Market Cap1.64
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit1.28
Enterprise Value/Ebitda-9.00
Forecast
1Y Price Target
$30.50Price Target Upside18.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Citi Trends Business Overview & Revenue Model
Company DescriptionCiti Trends, Inc. (CTRN) is a leading specialty value retailer of apparel, accessories, and home trends. The company primarily serves the fashion needs of value-conscious African American and Hispanic families in the United States. Citi Trends offers a wide selection of discounted merchandise, including branded and private-label products for men, women, and children, along with a variety of home and lifestyle items.
How the Company Makes MoneyCiti Trends generates revenue through the sale of apparel, accessories, and home goods at its retail locations across the United States. The company's revenue model is primarily based on offering products at discounted prices, attracting cost-conscious consumers looking for quality merchandise at lower prices. Citi Trends operates a chain of physical stores where most of its sales are conducted, and it does not heavily rely on e-commerce as a sales channel. Key revenue streams include seasonal clothing collections, everyday apparel, and a variety of household items. The company's earnings are significantly influenced by its ability to maintain a diverse and appealing product mix, effective inventory management, and strategic store locations that cater to its target demographics.
Citi Trends Financial Statement Overview
Summary
Citi Trends is facing significant financial challenges, with declining revenue, profitability, and cash flow metrics. The company's high leverage and negative returns highlight potential risks if current trends continue. Strategic improvements are needed to enhance operational efficiency and financial stability.Income Statement
Citi Trends has experienced a decline in revenue and profitability. TTM shows a negative EBIT and net income, indicating significant challenges with operational efficiency and cost management. The gross profit margin is declining, reflecting increased cost pressures or reduced pricing power.55
Neutral
Balance Sheet
The company has a relatively high debt-to-equity ratio, signaling increased financial leverage, which could pose risks if earnings do not improve. Return on equity is negative in the TTM period due to net losses, indicating poor returns to shareholders. The equity ratio is also declining, suggesting a deterioration in financial stability.60
Neutral
Cash Flow
Operating cash flow has turned negative in the TTM period, indicating challenges in generating cash from operations. Free cash flow is also negative, which might impact the company's ability to invest in growth or pay down debt. Cash flow to net income ratios are unfavorable, highlighting inefficiencies in converting profits into cash.50
Neutral
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 753.08M | 747.94M | 795.01M | 991.60M | 783.29M | Gross Profit |
| 282.04M | 285.12M | 310.99M | 407.53M | 311.68M | EBIT |
| -39.49M | -19.45M | 12.25M | 79.52M | 31.93M | EBITDA |
| -18.19M | 3.41M | 148.24M | 150.40M | 99.67M | Net Income Common Stockholders |
| -43.17M | -11.98M | 58.89M | 62.24M | 23.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 61.09M | 79.71M | 103.50M | 49.79M | 123.18M | Total Assets |
| 462.77M | 518.72M | 544.26M | 474.02M | 494.59M | Total Debt |
| 220.40M | 234.65M | 267.60M | 216.11M | 192.81M | Net Debt |
| 159.31M | 154.95M | 164.10M | 166.32M | 69.63M | Total Liabilities |
| 349.59M | 361.01M | 377.81M | 357.88M | 330.96M | Stockholders Equity |
| 113.18M | 157.71M | 166.44M | 116.14M | 163.63M |
| Cash Flow | Free Cash Flow | |||
| -13.96M | -24.45M | -16.53M | 44.61M | 93.90M | Operating Cash Flow |
| -3.85M | -9.58M | 5.75M | 74.32M | 110.86M | Investing Cash Flow |
| -10.11M | -13.36M | 60.18M | -29.52M | 26.70M | Financing Cash Flow |
| -4.66M | -854.00K | -12.23M | -118.19M | -34.30M |
Citi Trends Technical Analysis
Positive
25.80
Price Trends
21.87
Positive
23.78
Positive
21.37
Positive
Market Momentum
1.34
Negative
61.75
Neutral
46.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTRN, the sentiment is Positive. The current price of 25.8 is above the 20-day moving average (MA) of 23.77, above the 50-day MA of 21.87, and above the 200-day MA of 21.37, indicating a bullish trend. The MACD of 1.34 indicates Negative momentum. The RSI at 61.75 is Neutral, neither overbought nor oversold. The STOCH value of 46.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTRN.
Citi Trends Risk Analysis
Citi Trends disclosed 28 risk factors in its most recent earnings report. Citi Trends reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Citi Trends Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $252.32M | 6.33 | 55.23% | 1.80% | 1.02% | 4.66% | |
62 Neutral | $168.23M | ― | -3.31% | 6.21% | -2.14% | -173.54% | |
62 Neutral | $6.88B | 11.26 | 2.78% | 3.93% | 2.65% | -22.00% | |
60 Neutral | $213.57M | ― | -31.87% | ― | 0.69% | -254.98% | |
49 Neutral | $254.96M | ― | -0.50% | ― | 1.57% | 98.64% | |
48 Neutral | $246.42M | ― | -3.49% | ― | 0.02% | -31.11% | |
43 Neutral | $137.29M | ― | -521.67% | ― | -13.49% | 63.10% |
* Consumer Cyclical Sector Average
Performance Comparison
CTRN
Citi Trends
25.80
2.48
10.63%
DBI
Designer Brands
3.34
-6.00
-64.24%
GCO
Genesco
21.86
-4.67
-17.60%
PLCE
Children's Place
5.91
-7.43
-55.70%
ZUMZ
Zumiez
12.35
-6.05
-32.88%
JILL
JJill
16.51
-15.13
-47.82%
Citi Trends Earnings Call Summary
Earnings Call Date:Mar 18, 2025
(Q4-2024)
| % Change Since: 19.78%|
Next Earnings Date:Jun 03, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with significant improvements in sales, margins, and inventory efficiency. The company is in a strong financial position and anticipates positive free cash flow, supported by strategic initiatives and a share repurchase program. However, challenges remain in specific product categories and operational execution, indicating areas for continued focus.Q4-2024 Updates
Positive Updates
Comparable Store Sales Growth
Fourth quarter comparable store sales grew by 6.4%, showing sequential improvement from the third quarter and strong acceleration on a two-year basis.
Gross Margin Expansion
The company delivered a gross margin rate of 39.7%, a 60-basis-point expansion compared to Q4 2023.
Inventory Efficiency
Inventories were down 6% compared to the prior year, with a focus on liquidating aged inventory quickly and maintaining fresher inventory.
Strong Financial Position
Citi Trends maintains a healthy balance sheet with $61 million in cash, no debt, and no drawings on a $75 million revolver.
Positive Free Cash Flow Anticipation
The company anticipates generating positive free cash flow for the first time in recent history in fiscal 2025.
Share Repurchase Program
Since mid-December, Citi Trends invested $10 million in share repurchases, resuming a $50 million share repurchase program.
Expansion Strategy
Planning to remodel at least 50 stores in 2025 and conducting market studies for new store expansion.
Negative Updates
Plus-Size Apparel Miss
Significant miss in plus-size apparel, driven by internally-controlled execution issues, with expectations for improvement by Q2 2025.
Valuation Allowance on Deferred Tax Assets
A non-cash valuation allowance of approximately $15.5 million was recorded, affecting tax expense.
Weather Disruption Impact
Weather disruptions in January had a 250-basis-point headwind to comparable store sales for the month.
Need for Operational Improvements
The company is still in the early stages of operational improvements, with significant opportunities ahead.
Company Guidance
During the fourth quarter of fiscal year 2024, Citi Trends reported a comparable store sales growth of 6.4%, driven by strong customer traffic and an increase in basket size. The company achieved total sales of approximately $211 million and a gross margin rate of 39.7%, marking a 60-basis-point expansion compared to the previous year. Inventory levels improved, ending the period with inventories down 6% year-over-year. Citi Trends also noted a high-single-digit growth in its footwear business and has identified key product intensification areas for 2025, including big men's, women's plus size, family footwear, consumables, and extreme value off-price deals. The company closed the fiscal year with $61 million in cash and no debt, and it anticipates low- to mid-single-digit comp sales growth for 2025, with plans to remodel at least 50 stores and open up to five new locations.Citi Trends Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Citi Trends Announces New Board Appointments and Growth
Positive
Mar 27, 2025
On March 25, 2025, Citi Trends, Inc. entered into an Amended and Restated Cooperation Agreement with Fund 1 Investments, LLC, leading to significant changes in its Board of Directors. The agreement resulted in the appointment of Wesley Calvert and Pamela Edwards as new directors, with Calvert becoming Chair of the Finance Committee and Edwards Chair of the Audit Committee. Additionally, Kenneth D. Seipel was named Chairman of the Board, and David Heath was appointed as Lead Independent Director, effective April 2, 2025. The agreement includes a standstill provision and voting commitments from Fund 1 Investments, aiming to enhance shareholder value and support the company’s strategic initiatives. The company also announced expected strong growth in Q1 2025 comparable store sales, driven by increased customer traffic and basket size, indicating positive market reception of its product and service strategies.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.