Citi Trends (CTRN) AI Stock Analysis

• Market Cap: $265.99M
• Dividend Yield: N/A
• Average Volume (3M): 107.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: 1.85%
• EPS Growth: -337.77%
• Country: US
• Employees: 2,600
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Retail
• EPS (TTM): 0.17
• Shares Outstanding: 8,294,051
• 10 Day Avg. Volume: 204,981
• 30 Day Avg. Volume: 107,064
• PEG Ratio: -1.17
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.75
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 1.53
• Enterprise Value/Ebitda: -7.70
• 1Y Price Target: $38.50
• Price Target Upside: 27.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• Price Target: $31.00 ▲(2.72%Upside)

Citi Trends shows mixed signals with financial performance under pressure due to declining revenues and profitability, but positive momentum in technical analysis and promising earnings call highlights. Corporate events indicate strategic planning for future growth. The negative P/E ratio is a cautionary signal, suggesting potential overvaluation. Continued operational improvements and strategic initiatives are key to improving the overall outlook.

Citi Trends Business Overview & Revenue Model

Company Description

Citi Trends, Inc. (CTRN) is a leading specialty value retailer of apparel, accessories, and home trends. The company primarily serves the fashion needs of value-conscious African American and Hispanic families in the United States. Citi Trends offers a wide selection of discounted merchandise, including branded and private-label products for men, women, and children, along with a variety of home and lifestyle items.

How the Company Makes Money

Citi Trends generates revenue through the sale of apparel, accessories, and home goods at its retail locations across the United States. The company's revenue model is primarily based on offering products at discounted prices, attracting cost-conscious consumers looking for quality merchandise at lower prices. Citi Trends operates a chain of physical stores where most of its sales are conducted, and it does not heavily rely on e-commerce as a sales channel. Key revenue streams include seasonal clothing collections, everyday apparel, and a variety of household items. The company's earnings are significantly influenced by its ability to maintain a diverse and appealing product mix, effective inventory management, and strategic store locations that cater to its target demographics.

Citi Trends Financial Statement Overview

Summary

Citi Trends faces financial challenges with declining revenue, profitability, and cash flow metrics. High leverage and negative returns suggest risks if trends continue. Strategic improvements are needed for operational efficiency and financial stability.

Income Statement

Citi Trends has experienced a decline in revenue and profitability. TTM shows a negative EBIT and net income, indicating significant challenges with operational efficiency and cost management. The gross profit margin is declining, reflecting increased cost pressures or reduced pricing power.

Balance Sheet

The company has a relatively high debt-to-equity ratio, signaling increased financial leverage, which could pose risks if earnings do not improve. Return on equity is negative in the TTM period due to net losses, indicating poor returns to shareholders. The equity ratio is also declining, suggesting a deterioration in financial stability.

Cash Flow

Operating cash flow has turned negative in the TTM period, indicating challenges in generating cash from operations. Free cash flow is also negative, which might impact the company's ability to invest in growth or pay down debt. Cash flow to net income ratios are unfavorable, highlighting inefficiencies in converting profits into cash.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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
	EBIT
-31.96M	-39.49M	-19.45M	75.31M	79.52M	31.93M
	EBITDA
-11.55M	-18.19M	3.41M	148.24M	150.40M	51.43M
	Net Income Common Stockholders
-38.87M	-43.17M	-11.98M	58.89M	62.24M	23.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.56M	61.09M	79.71M	103.50M	49.79M	123.18M
	Total Assets
437.41M	462.77M	518.72M	544.26M	474.02M	494.59M
	Total Debt
220.39M	220.40M	234.65M	267.60M	216.11M	192.81M
	Net Debt
134.24M	159.31M	154.95M	164.10M	166.32M	69.63M
	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: 30.18
• 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 30.18 is above the 20-day moving average (MA) of 29.41, above the 50-day MA of 24.57, and above the 200-day MA of 22.46, indicating a bullish trend. The MACD of 2.37 indicates Positive momentum. The RSI at 55.84 is Neutral, neither overbought nor oversold. The STOCH value of 53.18 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	66 Neutral	$216.26M	6.03	41.77%	2.26%	-2.24%	-33.43%
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
CTRN	57 Neutral	$265.99M	―	-29.52%	―	1.85%	-337.77%
DBI	54 Neutral	$117.67M	―	-9.20%	8.30%	-4.22%	-386.70%
ZUMZ	50 Neutral	$215.56M	1,087.27	0.23%	―	3.01%	―
GCO	49 Neutral	$230.79M	―	-3.07%	―	1.85%	22.34%
PLCE	40 Underperform	$89.47M	―	-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.

The most recent analyst rating on (CTRN) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Citi Trends stock, see the CTRN Stock Forecast page.

Citi Trends Announces New Board Appointments and Growth

On March 25, 2025, Citi Trends, Inc. entered into an Amended and Restated Cooperation Agreement with Fund 1 Investments, LLC, leading to significant changes in its Board of Directors. The agreement resulted in the appointment of Wesley Calvert and Pamela Edwards as new directors, with Calvert becoming Chair of the Finance Committee and Edwards Chair of the Audit Committee. Additionally, Kenneth D. Seipel was named Chairman of the Board, and David Heath was appointed as Lead Independent Director, effective April 2, 2025. The agreement includes a standstill provision and voting commitments from Fund 1 Investments, aiming to enhance shareholder value and support the company’s strategic initiatives. The company also announced expected strong growth in Q1 2025 comparable store sales, driven by increased customer traffic and basket size, indicating positive market reception of its product and service strategies.