Citi Trends (CTRN) AI Stock Analysis

• Market Cap: $359.01M
• Dividend Yield: N/A
• Average Volume (3M): 106.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: 5.77%
• EPS Growth: 35.12%
• Country: US
• Employees: 2,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -0.88
• Shares Outstanding: 8,345,260
• 10 Day Avg. Volume: 104,338
• 30 Day Avg. Volume: 106,337
• PEG Ratio: -0.02
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -15.43
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 1.33
• Enterprise Value/Ebitda: 24.43
• 1Y Price Target: $55.50
• Price Target Upside: 36.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $47.00 ▲(15.17% Upside)

Citi Trends' overall stock score is primarily influenced by its financial challenges, including high leverage and cash flow issues. Despite these challenges, the company shows strong technical momentum and positive future guidance from the earnings call, which partially offsets the negative financial performance and valuation concerns.

Positive Factors

Sales Growth

Consistent sales growth indicates strong market demand and effective sales strategies, supporting long-term revenue expansion.

Strategic Expansion

Strategic store expansion can enhance market presence and drive revenue growth, leveraging economies of scale over time.

Technological Advancements

Investing in technology to enhance customer engagement can improve customer loyalty and long-term sales growth.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting long-term financial stability.

Cash Flow Challenges

Cash flow challenges can hinder the company's ability to invest in growth opportunities and meet financial obligations.

Gross Margin Challenges

Decreasing gross margins can pressure profitability, requiring improved cost management to sustain long-term earnings.

Citi Trends Business Overview & Revenue Model

Company Description

Citi Trends, Inc. is a retail company that operates a chain of discount apparel and accessories stores primarily targeting urban customers in the United States. The company focuses on offering a variety of fashionable clothing, shoes, and accessories for men, women, and children, often at prices that are significantly lower than traditional retailers. Citi Trends also emphasizes value-driven merchandise, catering to a diverse demographic and striving to meet the needs of communities in which its stores are located.

How the Company Makes Money

Citi Trends generates revenue primarily through the sale of apparel and accessories in its retail stores, which are strategically located in urban areas with high foot traffic. The company's revenue model is based on a low-price strategy, allowing it to attract a cost-conscious customer base. Key revenue streams include in-store sales, e-commerce sales through its online platform, and seasonal promotions that drive traffic and volume. Additionally, Citi Trends may benefit from partnerships with clothing manufacturers that allow for exclusive lines or branded merchandise, further enhancing its product offerings and customer appeal. The company's focus on community engagement and value is integral to maintaining customer loyalty and driving repeat business.

Citi Trends Financial Statement Overview

Summary

Citi Trends faces significant financial challenges with declining profitability, high leverage, and cash flow issues. The company needs to address cost management and improve operational efficiency to stabilize its financial position.

Income Statement

Citi Trends has experienced declining profitability with negative net profit margins and EBIT margins in the TTM period. Revenue growth is modest at 1.85% TTM, but the company has struggled to maintain positive earnings, indicating challenges in cost management and market conditions.

Balance Sheet

The company has a high debt-to-equity ratio of 2.02 TTM, indicating significant leverage. Return on equity is negative, reflecting losses and potential financial instability. The equity ratio is low, suggesting a reliance on debt financing.

Cash Flow

Citi Trends has negative free cash flow growth and a negative free cash flow to net income ratio, highlighting cash flow challenges. The operating cash flow to net income ratio is low, indicating inefficiencies in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	782.72M	753.08M	747.94M	795.01M	991.60M	783.29M
Gross Profit	302.24M	282.04M	285.12M	310.99M	407.53M	311.68M
EBITDA	16.41M	-18.19M	3.41M	96.93M	99.94M	51.43M
Net Income	-16.64M	-43.17M	-11.98M	58.89M	62.24M	23.98M
Balance Sheet
Total Assets	457.41M	462.77M	518.72M	544.26M	474.02M	494.59M
Cash, Cash Equivalents and Short-Term Investments	50.40M	61.09M	79.71M	103.50M	49.79M	123.18M
Total Debt	217.49M	220.40M	234.65M	267.60M	216.11M	192.81M
Total Liabilities	344.17M	349.59M	361.01M	377.81M	357.88M	330.96M
Stockholders Equity	113.24M	113.18M	157.71M	166.44M	116.14M	163.63M
Cash Flow
Free Cash Flow	-9.23M	-13.96M	-24.45M	-16.53M	44.61M	93.90M
Operating Cash Flow	3.03M	-3.85M	-9.58M	5.75M	74.32M	110.86M
Investing Cash Flow	-1.05M	-10.11M	-13.36M	60.18M	-29.52M	26.70M
Financing Cash Flow	-10.88M	-4.66M	-854.00K	-12.23M	-118.19M	-34.30M

Citi Trends Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 40.81 is below the 20-day moving average (MA) of 44.28, above the 50-day MA of 40.40, and above the 200-day MA of 31.46, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 43.18 is Neutral, neither overbought nor oversold. The STOCH value of 10.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTRN.

Citi Trends Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZUMZ	71 Outperform	$474.42M	57.28	2.79%	―	2.81%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JILL	61 Neutral	$215.39M	6.49	28.98%	2.25%	-2.67%	-22.93%
CTRN	56 Neutral	$359.01M	-20.45	-13.76%	―	5.77%	35.12%
DBI	53 Neutral	$377.73M	-12.72	-8.61%	2.68%	-5.16%	-3394.48%
GCO	48 Neutral	$243.48M	-119.16	-0.13%	―	2.76%	96.01%
PLCE	38 Underperform	$89.56M	-1.52	―	―	-10.09%	81.44%

Citi Trends Corporate Events

Citi Trends’ Earnings Call Highlights Growth and Challenges

Citi Trends’ recent earnings call conveyed a positive sentiment, highlighting strong sales growth and gross margin improvements. The company is strategically positioned for expansion and inventory optimization, although challenges such as increased SG&A expenses and an adjusted EBITDA loss remain. Overall, Citi Trends’ outlook is optimistic, with strategic initiatives paving the way for a promising future.

Citi Trends Reports Strong Q2 2025 Performance

Citi Trends, Inc. is a prominent off-price value retailer specializing in apparel, accessories, and home trends, primarily catering to African American families across the United States. The company operates 590 stores in 33 states, offering a unique shopping experience with a focus on affordability and trend-leading merchandise.