Company Updates EBITDA Definition, Expects 6%-8% Sales Growth in Fiscal 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 17 2026
0mins
The company said, "Beginning in 2026 the Company will update its definition of adjusted EBITDA and adjusted SG&A to include an addback of equity-based compensation expense because equity-based compensation is a non-cash expense that the Company does not use to assess core profitability. The Company believes excluding equity-based compensation will improve comparability and provide greater transparency of cash generated from operations. For reference, in fiscal 2025 this expense was $1.0 million in Q1, $1.5 million in Q2, $1.5 million in Q3 and $1.4 million in Q4, totaling $5.4 million for the year. In fiscal 2026, equity-based compensation expense is expected to be in the range of $5.5 million to $6.0 million. The Company's outlook for fiscal 2026 compared to fiscal 2025 is as follows: Expecting total sales growth of 6% to 8% with comparable store sales growth in the range of 5% to 7%; Gross margin is expected to expand approximately 100 basis points; Adjusted SG&A is expected to leverage 70 to 100 basis points, as adjusted; Adjusted EBITDA is now expected to be in the range of $34 million to $38 million, with approximately 200 basis points of adjusted EBITDA margin expansion; For the year, the Company plans to open approximately 25 new stores, remodel 50 stores, and close 4 locations; Capital expenditures are expected to be in the range of $35 million to $40 million, with the majority of the spend on new stores and remodels."
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Analyst Views on CTRN
Wall Street analysts forecast CTRN stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 38.230
Low
52.00
Averages
52.00
High
52.00
Current: 38.230
Low
52.00
Averages
52.00
High
52.00
About CTRN
Citi Trends, Inc. is a retailer of apparel, accessories and home trends primarily for African American families in the United States. The Company operates 590 stores located in 33 states. It offers a range of merchandise, including a range of apparel for juniors, missy and plus size, including trend right sportswear, outerwear, sleepwear, lingerie and scrubs; a selection of apparel for men and big men, including trend right sportswear and outerwear; an assortment of basics, fashion and trends for boys up to size 20 and girls up to size 16 and also, sizes for newborns, infants and toddlers, and kids uniforms, accessories and sleepwear, and fashionable handbags, luggage, hats, belts, sunglasses, jewelry and watches for men and women, underwear and socks for the entire family, as well as beauty and fragrance offerings for women and men. It also offers home goods for the bedroom, bathroom, kitchen and decorative accessories and casual and dress footwear in sizes for men, women and kids.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Conference Call Details: A conference call will be held on the same day at 9:00 AM ET to discuss financial and business developments, likely attracting investor interest and providing market insights.
- Online Broadcast and Replay: The call will be available via live broadcast on the company's Investor Relations website, with a replay accessible for one year post-call, enhancing information accessibility for investors.
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See More
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See More
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See More
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- Store Expansion Plans: The company plans to open approximately 25 new stores, remodel 50 locations, and close 4, indicating proactive measures to optimize store layouts and enhance customer experience, aiming to strengthen its competitive position in the market.
- Capital Expenditure Strategy: Capital expenditures are expected to range from $35 million to $40 million, primarily focused on new store openings and remodels, a strategy that will help improve operational efficiency and long-term profitability.
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See More
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See More
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- Management Participation: The company's management will attend the conference, indicating Citi Trends' commitment to investor communication, aiming to enhance market confidence and increase brand visibility.
- Live Webcast: The presentation will be available via live webcast on the company's website, allowing global investors to stay updated on the latest developments, thereby enhancing transparency and fostering investor relations.
- Archive Availability: An online archive of the presentation will be accessible for 90 days post-event, ensuring that investors who miss the live session can still access key information, further improving engagement with the investor community.
See More
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- Earnings Release Schedule: Citi Trends plans to release its Q1 2026 earnings before the market opens on June 2, 2026, reflecting the company's commitment to transparency and potentially boosting investor confidence.
- Conference Call Details: A conference call will be held on the same day at 9:00 AM ET to discuss financial and business developments, likely attracting investor interest and providing market insights.
- Online Broadcast and Replay: The call will be available via live broadcast on the company's Investor Relations website, with a replay accessible for one year post-call, enhancing information accessibility for investors.
- Company Overview: Citi Trends is a leading off-price retailer in the U.S. focused on apparel and home trends for Black families, operating 591 stores across 33 states, underscoring its significant market presence.
See More
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- Significant Sales Growth: Citi Trends achieved an 8.9% increase in comparable store sales in Q4 2025, with total sales reaching $230.4 million, demonstrating broad-based growth across regions and product categories, thereby solidifying its market position.
- Substantial EBITDA Increase: The company reported a 67% growth in EBITDA to $11.9 million, reflecting a significant enhancement in profitability amid ongoing operational efficiency improvements, which is expected to support future investments and expansions.
- Strategic Investment and Expansion: The CFO projected total sales growth of 6% to 8% for fiscal 2026 and plans to open approximately 25 new stores using a data-driven site selection methodology, aiming to further increase market share and customer reach.
- Effective Operational Transformation: By implementing standardized KPIs and real-time dashboards, the company has fundamentally transformed its operational model, enhancing its responsiveness to market changes and laying a solid foundation for future growth.
See More
Citi Trends Reports Strong Q4 Results and Positive Outlook
- Significant Revenue Growth: Citi Trends reported fourth-quarter revenue of $230.4 million, a 9% increase year-over-year and $3 million above expectations, driven by an 8.9% rise in comparable store sales, marking the sixth consecutive quarter of positive growth and demonstrating strengthened business fundamentals and operational efficiency.
- Improved Profitability: The company swung to a profit of $0.88 per share from a loss of $1.71 a year ago, with adjusted EBITDA soaring 68% to $11.9 million and gross margin expanding by 20 basis points to 39.9%, reflecting enhanced profitability due to increased traffic and improved merchandise assortment.
- Optimistic Future Outlook: For FY26, Citi Trends expects adjusted EBITDA to range between $34 million and $38 million, with approximately 100 basis points of gross margin expansion, alongside plans to open 25 new stores, remodel 50, and close 3, indicating strong confidence in future growth.
- Positive Market Reaction: Citi Trends shares surged over 20% at the open, reaching a four-year high, reflecting investor recognition of the company's successful transformation and potential for future growth.
See More
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- Sales Growth Outlook: Citi Trends anticipates total sales growth of 6% to 8% for 2026, with comparable store sales growth projected between 5% and 7%, reflecting the company's optimistic outlook that may attract increased investor interest.
- Store Expansion Plans: The company plans to open approximately 25 new stores, remodel 50 locations, and close 4, indicating proactive measures to optimize store layouts and enhance customer experience, aiming to strengthen its competitive position in the market.
- Capital Expenditure Strategy: Capital expenditures are expected to range from $35 million to $40 million, primarily focused on new store openings and remodels, a strategy that will help improve operational efficiency and long-term profitability.
- Strong Performance: Citi Trends achieved an 8.9% comparable store sales growth in the fourth quarter, with a 15.3% increase on a two-year basis, marking the sixth consecutive quarter of positive comps, demonstrating its robust performance and sustained growth potential in the retail market.
See More
Citi Trends Q4 Earnings Exceed Expectations
- Strong Earnings Report: Citi Trends reported a Q4 GAAP EPS of $0.88, beating expectations by $0.16, with revenue of $230.39 million reflecting a 9.1% year-over-year increase, surpassing estimates by $2.97 million, indicating robust market performance.
- Sales Growth Robust: For Q4 2025, total sales reached $230.4 million, with comparable store sales growth of 8.9% and a two-year stack of 15.3%, demonstrating the company's sustained competitiveness in the retail market.
- Positive Outlook: The company anticipates total sales growth of 6% to 8% for fiscal 2026, with comparable store sales growth projected between 5% and 7%, and gross margin expected to expand by approximately 100 basis points, highlighting potential for improved profitability.
- Clear Expansion Plans: Citi Trends plans to open about 25 new stores, remodel 50 locations, and close 4, with capital expenditures expected to range from $35 million to $40 million, primarily for new stores and remodels, reflecting confidence in future growth.
See More
Citi Trends to Present at UBS 2026 Global Consumer and Retail Conference
- Conference Announcement: Citi Trends will present at the UBS 2026 Global Consumer and Retail Conference on March 11, 2026, at 11:00 AM ET, showcasing its market positioning in apparel and home trends, which is expected to attract investor interest.
- Management Participation: The company's management will attend the conference, indicating Citi Trends' commitment to investor communication, aiming to enhance market confidence and increase brand visibility.
- Live Webcast: The presentation will be available via live webcast on the company's website, allowing global investors to stay updated on the latest developments, thereby enhancing transparency and fostering investor relations.
- Archive Availability: An online archive of the presentation will be accessible for 90 days post-event, ensuring that investors who miss the live session can still access key information, further improving engagement with the investor community.
See More
