Education
About Us
Working with TipRanks
Follow Us
Citi Trends (CTRN)
NASDAQ:CTRN
Top Page
Citi Trends
(NASDAQ:CTRN)
Select Model
Select Model
Rating:62Neutral
Price Target:
$36.00
▲(16.69% Upside)
Citi Trends' overall stock score is driven by strong earnings call results and positive technical indicators, suggesting potential for growth. However, financial performance and valuation concerns, including negative profitability and a high P/E ratio, weigh down the score. Strategic initiatives and positive sales trends offer a promising outlook, but financial stability remains a key risk.
Citi Trends (CTRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$260.64M
Dividend YieldN/A
Average Volume (3M)100.31K
Price to Earnings (P/E)―
Beta (1Y)1.50
Revenue Growth3.32%
EPS Growth25.71%
CountryUS
Employees2,600
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.82
Shares Outstanding8,305,912
10 Day Avg. Volume99,933
30 Day Avg. Volume100,315
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.57
Enterprise Value/Revenue0.53
Enterprise Value/Gross Profit1.46
Enterprise Value/Ebitda-35.41
Forecast
1Y Price Target
$48.00Price Target Upside55.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Citi Trends Business Overview & Revenue Model
Company DescriptionCiti Trends, Inc. is a leading value retailer in the United States, primarily focused on offering trendy, affordable apparel and accessories for the family. The company operates a chain of stores that provide a wide range of products, including clothing, footwear, and home décor, targeting urban and suburban customers. Citi Trends is known for its commitment to delivering fashionable products at low prices, catering to a diverse demographic primarily in underserved communities.
How the Company Makes MoneyCiti 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 Earnings Call Summary
Earnings Call Date:Aug 26, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Dec 02, 2025
Earnings Call Sentiment Positive
Citi Trends demonstrated strong sales growth and gross margin improvement, with strategic initiatives in place for expansion and inventory optimization. However, increased SG&A expenses and an adjusted EBITDA loss present challenges. Overall, the company's positive outlook and strategic moves indicate a promising trajectory.Q2-2025 Updates
Positive Updates
Consistent Sales Growth
Citi Trends reported a fourth consecutive quarter of mid to high single-digit comparable sales growth, achieving 9.2% in Q2 and 9.6% year-to-date year-over-year comp growth.
Gross Margin Improvement
Achieved a 40% gross margin rate in Q2, the highest since fiscal 2021, marking an 890 basis point expansion versus Q2 last year.
Inventory Optimization
In-store inventory decreased by 5.7% compared to last year while supporting a 9.2% comp growth, reflecting improved inventory efficiency.
Updated 2025 Outlook
Citi Trends increased its full-year guidance, now expecting mid to high single-digit comp store sales growth and full-year EBITDA in the range of $7 million to $11 million.
Expansion and Remodel Strategy
Plans to remodel approximately 60 locations in 2025 and expand square footage by mid-single digits annually, with a goal of achieving $40 million or more in EBITDA by 2027.
Negative Updates
SG&A Expenses
Second quarter adjusted SG&A expense totaled $78.9 million, an increase from $72.1 million in the prior period, due to higher incentive compensation accruals.
Adjusted EBITDA Loss
Reported a loss of $2.6 million in adjusted EBITDA for Q2, despite an improvement versus the prior year.
Company Guidance
During the Citi Trends Second Quarter 2025 Earnings Conference Call, the company reported a strong comparable sales growth of 9.2% for the second quarter, marking their fourth consecutive quarter of mid to high single-digit comp sales growth, with year-to-date comp growth at 9.6%. The gross margin rate improved significantly, reaching the highest in several years, with an 890 basis point expansion compared to Q2 2024. SG&A expenses were slightly deleveraged due to incentive compensation, but excluding performance bonuses, SG&A leveraged in line with guidance. The company also highlighted progress in their transformation plan, which includes phases of Repair, Execute, and Optimize, aiming for sustainable profitable growth. They anticipate mid to high single-digit comp store sales growth for the full year and expect EBITDA to be between $7 million and $11 million, representing a $21 million to $25 million increase over fiscal 2024 results. Additionally, they plan to remodel approximately 60 stores in 2025 and aim for $40 million or more in EBITDA by 2027, fueled by consistent single-digit sales growth and new store expansion.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.45
Neutral
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.50
Neutral
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.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
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 |
| EBITDA | -11.55M | -18.19M | 3.41M | 148.24M | 150.40M | 51.43M |
| Net Income | -38.87M | -43.17M | -11.98M | 58.89M | 62.24M | 23.98M |
Balance Sheet | ||||||
| Total Assets | 437.41M | 462.77M | 518.72M | 544.26M | 474.02M | 494.59M |
| Cash, Cash Equivalents and Short-Term Investments | 41.56M | 61.09M | 79.71M | 103.50M | 49.79M | 123.18M |
| Total Debt | 220.39M | 220.40M | 234.65M | 267.60M | 216.11M | 192.81M |
| 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
Neutral
30.85
Price Trends
32.67
Negative
30.88
Negative
27.36
Positive
Market Momentum
-0.49
Positive
38.94
Neutral
6.75
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTRN, the sentiment is Neutral. The current price of 30.85 is below the 20-day moving average (MA) of 34.47, below the 50-day MA of 32.67, and above the 200-day MA of 27.36, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 38.94 is Neutral, neither overbought nor oversold. The STOCH value of 6.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | 270.90M | 7.45 | 30.29% | 1.76% | -2.37% | -16.40% | |
64 Neutral | 343.76M | -3,850.98 | -0.52% | ― | 1.64% | ― | |
62 Neutral | $260.64M | ― | -13.32% | ― | 3.32% | 25.71% | |
58 Neutral | 193.22M | -5.37 | -11.31% | 5.35% | -4.63% | -637.55% | |
57 Neutral | 344.70M | -12.54 | -4.37% | ― | 2.66% | -4772.54% | |
46 Neutral | 146.53M | -7.29 | 560.88% | ― | -12.08% | 93.16% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
CTRN
Citi Trends
30.85
12.35
66.76%
DBI
Designer Brands
3.74
-2.86
-43.33%
GCO
Genesco
30.71
3.60
13.28%
PLCE
Children's Place
6.35
-10.67
-62.69%
ZUMZ
Zumiez
19.64
-2.36
-10.73%
JILL
JJill
17.66
-7.13
-28.76%
Citi Trends Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Citi Trends Approves Share Increase at Annual Meeting
Positive
Jun 9, 2025
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.
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.