Citi Trends (CTRN) AI Stock Analysis

• Market Cap: $325.26M
• Dividend Yield: N/A
• Average Volume (3M): 93.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: 3.32%
• EPS Growth: 25.71%
• Country: US
• Employees: 2,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -0.82
• Shares Outstanding: 8,305,912
• 10 Day Avg. Volume: 94,559
• 30 Day Avg. Volume: 93,432
• 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: 0.53
• Enterprise Value/Gross Profit: 1.46
• Enterprise Value/Ebitda: -35.41
• 1Y Price Target: $43.00
• Price Target Upside: 11.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $37.00 ▼(-4.39% Downside)

Citi Trends' overall stock score reflects financial challenges with declining revenues and profitability, offset by positive sales growth and strategic initiatives highlighted in the earnings call. Technical indicators show short-term momentum, but valuation concerns persist due to negative earnings.

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 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 2024	Dec 2023	Dec 2023	Dec 2022
Income Statement
Total Revenue	768.52M	753.08M	753.08M	747.94M	747.94M	795.01M
Gross Profit	280.67M	282.04M	282.04M	285.12M	285.12M	310.99M
EBITDA	-11.55M	-18.19M	-18.19M	3.41M	3.41M	148.24M
Net Income	-38.87M	-43.17M	-43.17M	-11.98M	-11.98M	58.89M
Balance Sheet
Total Assets	437.41M	462.77M	462.77M	518.72M	518.72M	544.26M
Cash, Cash Equivalents and Short-Term Investments	41.56M	61.09M	61.09M	79.71M	79.71M	103.50M
Total Debt	220.39M	220.40M	220.40M	234.65M	234.65M	267.60M
Total Liabilities	328.85M	349.59M	349.59M	361.01M	361.01M	377.81M
Stockholders Equity	108.56M	113.18M	113.18M	157.71M	157.71M	166.44M
Cash Flow
Free Cash Flow	-5.83M	-13.96M	-13.96M	-24.45M	-24.45M	-16.53M
Operating Cash Flow	4.80M	-3.85M	-3.85M	-9.58M	-9.58M	5.75M
Investing Cash Flow	-10.62M	-10.11M	-10.11M	-13.36M	-13.36M	60.18M
Financing Cash Flow	-10.79M	-4.66M	-4.66M	-854.00K	-854.00K	-12.23M

Citi Trends Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 38.7 is above the 20-day moving average (MA) of 36.32, above the 50-day MA of 34.75, and above the 200-day MA of 28.77, indicating a bullish trend. The MACD of 1.01 indicates Negative momentum. The RSI at 65.12 is Neutral, neither overbought nor oversold. The STOCH value of 94.89 is Negative, 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	64 Neutral	$370.52M	―	0.19%	―	1.64%	―
JILL	63 Neutral	$224.00M	6.16	34.74%	2.04%	-2.37%	-16.40%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DBI	56 Neutral	$197.68M	―	-9.98%	4.90%	-4.63%	-637.55%
CTRN	53 Neutral	$325.26M	―	-13.32%	―	3.32%	25.71%
GCO	50 Neutral	$331.10M	―	-4.81%	―	2.66%	-4772.54%
PLCE	49 Neutral	$170.47M	―	―	―	-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.