Citi Trends (CTRN)
NASDAQ:CTRN
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Citi Trends
(NASDAQ:CTRN)
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Rating:52Neutral
Price Target:
$48.00
▼(-7.14% Downside)
Action:ReiteratedDate:04/16/26
The score is held back primarily by weak financial performance (thin profitability, high stated leverage, and minimal free cash flow). Offsetting factors include a technically improving price trend and a constructive earnings call with upbeat FY26 growth and margin guidance, while valuation appears reasonable with a moderate P/E.
Positive Factors
Sustained Comparable Store Sales Momentum
Nineteen months of positive comparable-store growth and recent Q4/Q2 two-year comp strength indicate durable customer demand and traffic for the value-oriented model. This consistent sales cadence supports predictable revenue scaling and underpins store-level economics for planned expansion.
Negative Factors
Thin and Volatile Profitability
Reported net margin is minimal and operating profit remains negative, indicating limited earnings power. Low margin headroom makes the business highly sensitive to cost inflation, freight or promotional missteps and constrains sustainable reinvestment capacity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Comparable Store Sales Momentum
Nineteen months of positive comparable-store growth and recent Q4/Q2 two-year comp strength indicate durable customer demand and traffic for the value-oriented model. This consistent sales cadence supports predictable revenue scaling and underpins store-level economics for planned expansion.
Read all positive factors
Citi Trends (CTRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$400.15M
Dividend YieldN/A
Average Volume (3M)106.34K
Price to Earnings (P/E)66.8
Beta (1Y)1.52
Revenue Growth8.88%
EPS GrowthN/A
CountryUS
Employees2,600
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.64
Shares Outstanding8,343,340
10 Day Avg. Volume104,338
30 Day Avg. Volume106,337
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)2.99
Price to Sales (P/S)0.42
P/FCF Ratio557.15
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue0.66
Enterprise Value/Gross Profit1.76
Enterprise Value/Ebitda22.90
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
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 primarily makes money by selling merchandise through its physical retail stores, generating revenue at the point of sale from customers purchasing its products. Its core revenue stream is net sales from retail merchandise, which genera...
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
46
Neutral
Balance Sheet
40
Negative
Cash Flow
34
Negative
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 819.96M | 753.08M | 747.94M | 795.01M | 991.60M |
| Gross Profit | 306.16M | 282.04M | 285.12M | 310.99M | 407.53M |
| EBITDA | 11.47M | -18.19M | 3.41M | 96.93M | 99.94M |
| Net Income | 5.21M | -43.17M | -11.98M | 58.89M | 62.24M |
Balance Sheet | |||||
| Total Assets | 471.17M | 462.77M | 518.72M | 544.26M | 474.02M |
| Cash, Cash Equivalents and Short-Term Investments | 66.09M | 61.09M | 79.71M | 103.50M | 49.79M |
| Total Debt | 223.32M | 220.40M | 234.65M | 267.60M | 216.11M |
| Total Liabilities | 354.85M | 349.59M | 361.01M | 377.81M | 357.88M |
| Stockholders Equity | 116.32M | 113.18M | 157.71M | 166.44M | 116.14M |
Cash Flow | |||||
| Free Cash Flow | 624.00K | -13.96M | -24.45M | -16.53M | 44.61M |
| Operating Cash Flow | 20.95M | -3.85M | -9.58M | 5.75M | 74.32M |
| Investing Cash Flow | -8.49M | -10.11M | -13.36M | 60.18M | -29.52M |
| Financing Cash Flow | -7.45M | -4.66M | -854.00K | -12.23M | -118.19M |
Citi Trends Technical Analysis
Positive
51.69
Price Trends
45.87
Positive
45.05
Positive
39.46
Positive
Market Momentum
0.77
Negative
64.92
Neutral
85.31
Negative
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 51.69 is above the 20-day moving average (MA) of 44.87, above the 50-day MA of 45.87, and above the 200-day MA of 39.46, indicating a bullish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 64.92 is Neutral, neither overbought nor oversold. The STOCH value of 85.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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% | |
61 Neutral | $378.30M | 22.60 | 2.52% | ― | 4.78% | ― | |
56 Neutral | $413.55M | 30.86 | 4.41% | ― | 4.48% | ― | |
55 Neutral | $184.84M | 8.40 | 23.05% | 2.25% | -2.34% | -31.72% | |
52 Neutral | $400.15M | 66.77 | 4.67% | ― | 8.88% | ― | |
51 Neutral | $375.45M | -37.20 | -2.97% | 2.68% | -3.87% | 39.59% | |
42 Neutral | $72.41M | -0.50 | 532.94% | ― | -12.80% | 11.78% |
* Consumer Cyclical Sector Average
CTRN
Citi Trends
45.64
22.84
100.18%
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Citi Trends Corporate Events
Executive/Board Changes
Citi Trends Announces Board Change and New Finance Chair
Neutral
Feb 20, 2026
On February 19, 2026, Citi Trends, Inc. announced that director Wes Calvert departed from its Board of Directors, with the company emphasizing that his exit was not due to any disagreement over operations, policies, or practices. The same day, the...
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.