Citi Trends (CTRN)
NASDAQ:CTRN
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Citi Trends
(NASDAQ:CTRN)
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Rating:54Neutral
Price Target:
$47.00
▲(8.49% Upside)
Action:ReiteratedDate:02/19/26
The score is held back primarily by weak financial performance (ongoing losses and high leverage) despite improving cash flow. Offsetting factors include a strong technical uptrend and constructive business momentum from the earnings call and holiday update, while valuation remains unfavorable given the negative P/E.
Positive Factors
Consistent Comparable Sales Growth
Sustained comp growth (10.8% Q3; 15 straight months) indicates durable customer demand and successful merchandising. Persistent top-line momentum supports inventory turns, foot traffic and provides a base for operating leverage as store and digital channels scale over the coming months.
Negative Factors
Elevated Leverage
Debt near 2.0x equity is high for a cyclical discount retailer and reduces financial flexibility. Elevated leverage increases interest and refinancing risk, limits the firm's ability to fund discretionary initiatives during downturns, and amplifies earnings volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Comparable Sales Growth
Sustained comp growth (10.8% Q3; 15 straight months) indicates durable customer demand and successful merchandising. Persistent top-line momentum supports inventory turns, foot traffic and provides a base for operating leverage as store and digital channels scale over the coming months.
Read all positive factors
Citi Trends (CTRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$361.52M
Dividend YieldN/A
Average Volume (3M)106.34K
Price to Earnings (P/E)11.8
Beta (1Y)1.51
Revenue Growth5.77%
EPS Growth35.12%
CountryUS
Employees2,600
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.85
Shares Outstanding8,345,260
10 Day Avg. Volume104,338
30 Day Avg. Volume106,337
Financial Highlights & Ratios
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 Cap1.43
Enterprise Value/Revenue0.65
Enterprise Value/Gross Profit1.71
Enterprise Value/Ebitda29.11
Forecast
1Y Price Target
$67.00Price Target Upside54.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.88
Revenue Forecast (FY)$859.29M
Citi Trends Business Overview & Revenue Model
Company Description
Citi Trends, Inc. operates as a value retailer of fashion apparel, accessories, and home goods. It offers apparel, such as fashion sportswear and footwear for men and ladies, as well as apparel for kids, including newborns, infants, toddlers, boys...
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...
Citi Trends Earnings Call Summary
Earnings Call Date:Mar 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 26, 2026
Earnings Call Sentiment Positive
The call conveyed solid, broad-based operational and financial progress: sustained comparable store sales momentum, meaningful margin expansion, inventory efficiency gains, successful marketing engagement, and a debt-free balance sheet. Management provided constructive 2026 guidance with ambitious EBITDA targets and a clear playbook (AI allocation, store refresh program, disciplined new store growth). Near-term headwinds include weather-related disruptions, some Q4 gross margin noise from freight and markdowns, a delayed loyalty rollout, and increased reliance on closeouts/off-price assortment. Overall the positives (consistent comp growth, profitability improvement, technology-driven operational gains, and healthy balance sheet) materially outweigh the challenges presented.Positive Updates
Strong Comparable Store Sales Momentum
Q4 comparable store sales grew 8.9% (15.3% on a two-year basis); full year comparable store sales increased 9.7% (13.1% two-year). This marks the sixth consecutive quarter and 19 months of positive comp growth.
Negative Updates
Q4 Gross Margin Shortfall to Expectations
Although gross margin expanded year-over-year, Q4 fell short of management’s expectations due to slightly higher-than-expected freight expense and incremental markdowns to exit the quarter clean.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Comparable Store Sales Momentum
Q4 comparable store sales grew 8.9% (15.3% on a two-year basis); full year comparable store sales increased 9.7% (13.1% two-year). This marks the sixth consecutive quarter and 19 months of positive comp growth.
Read all positive updates
Company Guidance
Management guided fiscal 2026 for total sales growth of 6%–8% with comparable store sales up 5%–7% (Q1 quarter-to-date comps running in the high single digits), about +100 basis points of gross margin expansion, and adjusted SG&A leverage of 70–100 bps versus a 37.5% adjusted SG&A rate in FY25; adjusted EBITDA is targeted at $34.0–$38.0 million (vs $17.2M in FY25) with roughly a 200 bp improvement in adjusted EBITDA margin from the 2.1% delivered in 2025. They also said equity-based compensation will be excluded from adjusted SG&A/EBITDA going forward (FY25 equity comp totaled $5.4M; 2026 estimated $5.5–6.0M), plan to open ~25 new stores (with ~4 closures), remodel ~50 stores to bring ~42% of the fleet to updated format, and expect full-year capital expenditures of $35M–$40M.Citi Trends Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
38
Negative
Cash Flow
50
Neutral
| Breakdown | TTM | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 | Jan 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 800.74M | 753.08M | 747.94M | 795.01M | 991.60M | 783.29M |
| Gross Profit | 303.01M | 282.04M | 285.12M | 310.99M | 407.53M | 311.68M |
| EBITDA | 17.82M | -18.19M | 3.41M | 96.93M | 99.94M | 51.43M |
| Net Income | -16.38M | -43.17M | -11.98M | 58.89M | 62.24M | 23.98M |
Balance Sheet | ||||||
| Total Assets | 464.26M | 462.77M | 518.72M | 544.26M | 474.02M | 494.59M |
| Cash, Cash Equivalents and Short-Term Investments | 51.10M | 61.09M | 79.71M | 103.50M | 49.79M | 123.18M |
| Total Debt | 218.04M | 220.40M | 234.65M | 267.60M | 216.11M | 192.81M |
| Total Liabilities | 356.43M | 349.59M | 361.01M | 377.81M | 357.88M | 330.96M |
| Stockholders Equity | 107.83M | 113.18M | 157.71M | 166.44M | 116.14M | 163.63M |
Cash Flow | ||||||
| Free Cash Flow | 11.95M | -13.96M | -24.45M | -16.53M | 44.61M | 93.90M |
| Operating Cash Flow | 29.97M | -3.85M | -9.58M | 5.75M | 74.32M | 110.86M |
| Investing Cash Flow | -6.82M | -10.11M | -13.36M | 60.18M | -29.52M | 26.70M |
| Financing Cash Flow | -10.93M | -4.66M | -854.00K | -12.23M | -118.19M | -34.30M |
Citi Trends Technical Analysis
Neutral
43.32
Price Trends
45.41
Negative
44.30
Negative
38.57
Positive
Market Momentum
-0.89
Positive
44.87
Neutral
6.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTRN, the sentiment is Neutral. The current price of 43.32 is below the 20-day moving average (MA) of 46.00, below the 50-day MA of 45.41, and above the 200-day MA of 38.57, indicating a neutral trend. The MACD of -0.89 indicates Positive momentum. The RSI at 44.87 is Neutral, neither overbought nor oversold. The STOCH value of 6.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CTRN.
Citi Trends Risk Analysis
Citi Trends disclosed 27 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $314.78M | 22.59 | 2.46% | ― | 2.76% | 96.01% | |
56 Neutral | $376.05M | 30.86 | 4.41% | ― | 2.81% | ― | |
55 Neutral | $173.22M | 8.40 | 28.75% | 2.25% | -2.67% | -22.93% | |
54 Neutral | $361.52M | 11.81 | 4.67% | ― | 5.77% | 35.12% | |
49 Neutral | $282.43M | -37.20 | -2.97% | 2.68% | -5.16% | -3394.48% | |
44 Neutral | $74.48M | -9.20 | 289.32% | ― | -10.09% | 81.44% |
* Consumer Cyclical Sector Average
CTRN
Citi Trends
43.32
21.90
102.24%
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22.16
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Citi Trends Corporate Events
Business Operations and StrategyFinancial Disclosures
Citi Trends Reports Strong Holiday Sales, Reaffirms 2025 Outlook
Positive
Jan 12, 2026
On January 12, 2026, Citi Trends reported strong 2025 holiday sales, with total sales for the nine-week period ending January 3, 2026 rising 9.6% year over year to $191.2 million and comparable store sales up 9.3%, producing a two-year comp stack ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.