Citi Trends (CTRN) AI Stock Analysis

• Market Cap: $361.06M
• Dividend Yield: N/A
• Average Volume (3M): 88.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• 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: 8,305,912
• 10 Day Avg. Volume: 87,124
• 30 Day Avg. Volume: 88,874
• 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: 1.26
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 1.51
• Enterprise Value/Ebitda: 27.75
• 1Y Price Target: $55.50
• Price Target Upside: 26.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $46.00 ▲(5.00% Upside)

Citi Trends' overall stock score is driven by strong guidance and strategic growth plans highlighted in the earnings call, despite current financial challenges. Technical indicators show positive momentum, but valuation concerns and financial performance issues weigh down the score. Continued focus on operational efficiency and cost management will be crucial for future improvement.

Positive Factors

Strategic Growth Plans

Citi Trends' clear strategic growth plans, including sales and EBITDA targets, demonstrate a focused approach to long-term expansion and profitability.

Consistent Sales Growth

Consistent sales growth over multiple quarters indicates strong market position and effective customer engagement strategies, supporting long-term revenue stability.

Technological Advancements

Investing in technology like CRM and loyalty platforms enhances customer relationships and operational efficiency, crucial for sustained competitive advantage.

Negative Factors

Gross Margin Challenges

Decreasing gross margins reflect cost management challenges, which can impact profitability and require strategic adjustments to sustain long-term financial health.

Rising SG&A Expenses

Increasing SG&A expenses can pressure operating margins, necessitating improved cost control measures to maintain financial stability and profitability.

Cash Flow Challenges

Negative cash flow highlights difficulties in capital management, potentially limiting the company's ability to invest in growth opportunities and manage financial obligations.

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 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. Continued focus on cost management and operational efficiency will be key to reversing the negative trends.

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	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: 43.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 43.81 is above the 20-day moving average (MA) of 41.30, above the 50-day MA of 37.16, and above the 200-day MA of 30.09, indicating a bullish trend. The MACD of 2.09 indicates Negative momentum. The RSI at 66.05 is Neutral, neither overbought nor oversold. The STOCH value of 55.72 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
ZUMZ	66 Neutral	$449.25M	―	0.19%	―	1.64%	―
JILL	64 Neutral	$239.84M	6.59	34.74%	1.85%	-2.37%	-16.40%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CTRN	57 Neutral	$361.06M	―	-13.76%	―	5.77%	35.12%
GCO	57 Neutral	$382.16M	―	-4.81%	―	2.66%	-4772.54%
DBI	51 Neutral	$207.59M	―	-9.98%	4.31%	-4.63%	-637.55%
PLCE	45 Neutral	$160.27M	―	―	―	-12.08%	93.16%

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.