Citi Trends (CTRN) AI Stock Analysis

• Market Cap: $321.31M
• Dividend Yield: N/A
• Average Volume (3M): 70.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: 3.32%
• EPS Growth: 25.71%
• Country: US
• Employees: 2,600
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Apparel - Retail
• EPS (TTM): -0.82
• Shares Outstanding: 8,294,051
• 10 Day Avg. Volume: 115,541
• 30 Day Avg. Volume: 70,614
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 1.46
• Enterprise Value/Ebitda: -35.41
• 1Y Price Target: $44.00
• Price Target Upside: 13.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 62 Neutral
• Price Target: $36.00 ▼(-7.07% Downside)

Citi Trends' overall stock score is driven by strong earnings call results and positive technical indicators, suggesting potential for growth. However, financial performance and valuation concerns, including negative profitability and a high P/E ratio, weigh down the score. Strategic initiatives and positive sales trends offer a promising outlook, but financial stability remains a key risk.

Citi Trends Business Overview & Revenue Model

Company Description

Citi Trends, Inc. is a leading value retailer in the United States, primarily focused on offering trendy, affordable apparel and accessories for the family. The company operates a chain of stores that provide a wide range of products, including clothing, footwear, and home décor, targeting urban and suburban customers. Citi Trends is known for its commitment to delivering fashionable products at low prices, catering to a diverse demographic primarily in underserved communities.

How the Company Makes Money

Citi Trends generates revenue primarily through the sale of its retail merchandise in physical stores and online. The company's revenue model is centered around offering a curated selection of discounted apparel and accessories, which allows it to attract price-sensitive customers. Key revenue streams include in-store sales, online sales through its e-commerce platform, and potentially private label products. Citi Trends also benefits from strategic partnerships with various suppliers and brands, enabling it to offer exclusive merchandise and seasonal promotions that drive foot traffic and sales. Additionally, the company may capitalize on its loyalty programs and marketing initiatives to enhance customer retention and promote repeat purchases.

Citi Trends Financial Statement Overview

Summary

Citi Trends is experiencing financial strain with declining revenues and profitability, affecting both the income statement and cash flows. The balance sheet shows moderate leverage, posing potential risks if earnings do not improve. While the company faces challenges, the relatively stable cash position offers some resilience to navigate through difficult periods.

Income Statement

Citi Trends has faced declining revenue and profitability in recent years. The TTM data shows a negative EBIT and net income, reflecting operational challenges. Gross profit margin has decreased compared to previous years, indicating pressure on cost management. However, despite the negative trend, there are signs of recovery in revenue growth when comparing recent TTM figures to the previous annual data.

Balance Sheet

The company's balance sheet reveals moderate stability with a debt-to-equity ratio that is relatively high, indicating potential leverage risk. The equity ratio has decreased over time, reflecting increased liabilities. However, the company maintains a consistent level of cash, which provides some liquidity buffer. Return on equity has been negative recently, consistent with the negative net income.

Cash Flow

Citi Trends has struggled with cash flow in recent periods, as evidenced by negative free cash flow. The operating cash flow to net income ratio is weak, highlighting challenges in converting income to cash. Free cash flow growth has been negative, suggesting difficulties in managing capital expenditures relative to cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	768.52M	753.08M	747.94M	795.01M	991.60M	783.29M
Gross Profit	280.67M	282.04M	285.12M	310.99M	407.53M	311.68M
EBITDA	-11.55M	-18.19M	3.41M	148.24M	150.40M	51.43M
Net Income	-38.87M	-43.17M	-11.98M	58.89M	62.24M	23.98M
Balance Sheet
Total Assets	437.41M	462.77M	518.72M	544.26M	474.02M	494.59M
Cash, Cash Equivalents and Short-Term Investments	41.56M	61.09M	79.71M	103.50M	49.79M	123.18M
Total Debt	220.39M	220.40M	234.65M	267.60M	216.11M	192.81M
Total Liabilities	328.85M	349.59M	361.01M	377.81M	357.88M	330.96M
Stockholders Equity	108.56M	113.18M	157.71M	166.44M	116.14M	163.63M
Cash Flow
Free Cash Flow	-5.83M	-13.96M	-24.45M	-16.53M	44.61M	93.90M
Operating Cash Flow	4.80M	-3.85M	-9.58M	5.75M	74.32M	110.86M
Investing Cash Flow	-10.62M	-10.11M	-13.36M	60.18M	-29.52M	26.70M
Financing Cash Flow	-10.79M	-4.66M	-854.00K	-12.23M	-118.19M	-34.30M

Citi Trends Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 38.74 is above the 20-day moving average (MA) of 33.57, above the 50-day MA of 31.99, and above the 200-day MA of 26.32, indicating a bullish trend. The MACD of 1.63 indicates Negative momentum. The RSI at 71.82 is Negative, neither overbought nor oversold. The STOCH value of 76.07 is Neutral, 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
JILL	68 Neutral	$267.70M	6.90	34.74%	1.71%	-2.37%	-16.40%
GCO	62 Neutral	$346.11M	―	-4.81%	―	2.66%	-4772.54%
CTRN	62 Neutral	$321.31M	―	-13.32%	―	3.32%	25.71%
Sector *	61 Neutral	$17.96B	13.14	-5.29%	3.00%	1.25%	-13.95%
DBI	60 Neutral	$184.56M	―	-9.20%	4.54%	-4.22%	-386.70%
ZUMZ	58 Neutral	$327.87M	1,677.27	0.23%	―	3.01%	―
PLCE	41 Neutral	$115.27M	―	-521.67%	―	-12.15%	75.86%

Citi Trends Corporate Events

Citi Trends Approves Share Increase at Annual Meeting

On June 5, 2025, Citi Trends, Inc. held its annual stockholders meeting virtually, where stockholders approved an amendment to increase shares under the 2021 Incentive Plan by 500,000. Additionally, eight directors were elected, executive compensation was approved on a non-binding basis, and Deloitte & Touche LLP was ratified as the independent auditor for the fiscal year ending January 31, 2026, indicating strong governance and strategic planning for future growth.