Citi Trends reported fourth‑quarter 2025 results that surpassed analyst expectations, with revenue of $230.4 million and earnings per share of $0.88, compared with a consensus estimate of $0.47. The company’s adjusted EPS of $0.85 also beat the $0.47 estimate, a surprise of $0.41 or 87 %. Net income for the quarter was $7.4 million, while comparable store sales grew 8.9 percent, the sixth consecutive quarter of positive comps and 15.3 percent on a two‑year basis.
Gross margin expanded to 39.6 percent, up 210 basis points from the prior year, driven by a stronger merchandise mix and disciplined cost management. The company’s net income margin improved as operating leverage increased, and the company reported a net income of $7.4 million versus a net loss of $43.2 million in fiscal 2024.
"Our fourth quarter results cap a transformational year for CITITRENDS. We delivered 8.9% comparable store sales growth in Q4, or 15.3% on a two‑year basis, marking our sixth consecutive quarter of positive comps," said CEO Ken Seipel. "Fiscal 2025 was about strengthening the foundation of the business and building the operational infrastructure needed for sustained profitable growth," Seipel added. "We believe these results validate the strategic actions we have taken to refocus the business on the Black customer – the center of everything we do, to sharpen our merchandise assortments, and to improve operational execution across the company."
For fiscal 2026, Citi Trends is targeting mid‑ to high‑single‑digit growth in total sales and continued margin expansion. The company projects total sales growth of 6 percent to 8 percent, comparable store sales growth of 5 percent to 7 percent, and gross‑margin expansion of roughly 100 basis points. Adjusted EBITDA is expected to be between $34 million and $38 million, more than doubling the $11.8 million reported in fiscal 2025. "In fiscal 2026, our priorities are: consistent execution, sales flow through to profit and accelerated growth. For the year, we are targeting mid to high‑single‑digit growth in total sales and continued margin expansion, and we expect to position the company to deliver adjusted EBITDA of $34 million to $38 million this year, which more than doubles our profit performance from fiscal 2025," Seipel said.
Investors responded positively to the earnings beat and the optimistic outlook, citing the company’s strong comparable store sales momentum, margin expansion, and clear focus on the Black customer as key drivers of confidence in Citi Trends’ future performance.
The results reinforce Citi Trends’ trajectory of sustained growth and operational improvement. The company’s ability to deliver a 210‑basis‑point gross‑margin expansion while driving comparable store sales growth demonstrates effective execution of its strategic initiatives. The guidance for 2026 signals confidence in continued demand and the scalability of its business model, positioning the company for a robust financial year ahead.
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