Citi Trends (CTRN) AI Stock Analysis

• Market Cap: $368.53M
• Dividend Yield: N/A
• Average Volume (3M): 106.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• 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: 1.49
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 1.82
• Enterprise Value/Ebitda: 33.47
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $42.00 ▼(-8.30% Downside)

The score is held down primarily by weak financial performance (losses, high leverage, and cash flow issues). This is partially offset by strong technical momentum and a more optimistic forward narrative from management, while valuation remains challenged due to negative earnings.

Positive Factors

Consistent comparable store sales growth

Sustained multi-quarter comp growth indicates durable product-market fit with the targeted urban demographic. Persistent same-store gains drive higher revenue per location, support operating leverage as stores scale, and validate expansion plans, improving medium-term cash generation potential.

Planned store expansion and remodel program

A concrete, staged store growth and remodel strategy signals management confidence in unit economics and market opportunity. If new and refreshed locations sustain comps, this supports revenue scalability and SG&A leverage over several years, enhancing long-term margin recovery prospects.

Investments in AI analytics, CRM and loyalty

Deploying AI for inventory and CRM/loyalty investments targets structural improvements: better assortment, higher turns, reduced stockouts, and improved retention. These capabilities can sustainably raise gross margins and lifetime customer value while reducing working capital needs over the medium term.

Negative Factors

High financial leverage

A high debt-to-equity ratio materially limits financial flexibility and increases interest and refinancing risk. Heavy leverage constrains the company's ability to fund store openings, remodels, or absorb margin shocks, raising restructuring or liquidity risks in a cyclical retail environment.

Negative profitability and weak cash flow conversion

Persistent negative profitability and poor free cash flow conversion undermine self-funded growth and heighten dependency on external financing. This impairs the execution of the multi-year roadmap, increases dilution or leverage risk, and makes margin recovery and sustained expansion more challenging.

Gross margin pressure and ongoing shrink issues

Erosion in gross margin and elevated shrink are structural profitability headwinds. Unless shrink is materially reduced and sourcing efficiency improves, margin expansion targets will be harder to achieve, limiting the company's ability to translate sales growth into sustainable earnings and cash flow.

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, and girls; sleepwear, lingerie, and scrubs for ladies; and kids uniforms and accessories. The company also provides accessories and beauty products that include handbags, luggage, hats, belts, sunglasses, jewelry, and watches, as well as undergarments and outerwear for men and women. In addition, it offers home and lifestyle products comprising home products for the bedroom, bathroom, kitchen, and decorative accessories; and food, tech, team sports, and health products, as well as seasonal items, books, and toys. The company provides its products primarily to African American and Latinx families in the United States. As of January 29, 2022, it operated 609 stores in urban and rural markets in 33 states. The company was formerly known as Allied Fashion, Inc. and changed its name to Citi Trends, Inc. in 2001. Citi Trends, Inc. was founded in 1946 and is headquartered in Savannah, Georgia.

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

Weak fundamentals: profitability is negative (negative net margin/EBIT margin), leverage is high (debt-to-equity 2.02) with negative ROE, and cash flow quality is poor (negative free cash flow growth and weak conversion of income to cash).

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: 45.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 45.8 is above the 20-day moving average (MA) of 45.16, above the 50-day MA of 44.13, and above the 200-day MA of 34.64, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 54.46 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	65 Neutral	$243.21M	7.34	28.98%	2.25%	-2.67%	-22.93%
GCO	63 Neutral	$312.67M	-155.37	-0.13%	―	2.76%	96.01%
ZUMZ	62 Neutral	$424.08M	51.65	2.79%	―	2.81%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CTRN	53 Neutral	$368.53M	-22.95	-13.76%	―	5.77%	35.12%
DBI	48 Neutral	$332.07M	-11.51	-8.61%	2.68%	-5.16%	-3394.48%
PLCE	38 Underperform	$91.33M	-1.57	―	―	-10.09%	81.44%

Citi Trends Corporate Events

Citi Trends Reports Strong Holiday Sales, Reaffirms 2025 Outlook

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 of 16.4%. For the year-to-date period through January 3, 2026, total sales increased 9.0% to $780.8 million and comparable store sales grew 9.8%, underscoring sustained momentum driven by elevated product assortments, effective marketing and improved in-store experience. The company said the solid holiday performance supports its ongoing transformation strategy and reaffirmed its previously issued fiscal 2025 outlook, including expectations for higher comparable sales, margin expansion, SG&A leverage, significantly improved EBITDA, a year-end cash balance of about $65 million, and a store footprint plan of modest openings, a small number of closures and a sizable remodel program, signaling confidence in its operational trajectory and value-creation plans for shareholders.

The most recent analyst rating on (CTRN) stock is a Hold with a $47.00 price target. To see the full list of analyst forecasts on Citi Trends stock, see the CTRN Stock Forecast page.