CTRN News & Events

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."

Reports Q4 revenue $230.4M vs. $211.2M last year. Ken Seipel, CEO, said: "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. For the full year, comparable store sales increased 9.7%, reflecting strong customer traffic and broad-based growth across our stores, geographies, and merchandise categories. This momentum has continued into 2026, with Q1 quarter-to-date comparable store sales trending in the high-single digits. Fiscal 2025 was about strengthening the foundation of the business and building the operational infrastructure needed for sustained profitable growth. We expanded net income by $48.4 million compared to fiscal 2025 to $5.2 million, expanded adjusted EBITDA by $26 million year-over-year to $11.8 million, improved gross margin by more than 200 basis points, and delivered meaningful SG&A leverage. 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. 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. With improving traffic trends, stronger operational discipline, and a clear path forward, we believe CITITRENDS is well positioned to continue driving profitable growth and shareholder value."

The company's implied fourth quarter comparable store sales are expected to be up high-single digits vs. Q4 2024. Q4 gross margin is expected to be in the range of 40% to 41% and SG&A is expected to be approximately $82M. Q4 EBITDA is expected to be in the range of $10M-$12M.

Citi Trends announced results for its holiday selling period. Total sales for the nine-week holiday period ending January 3, 2026 of $191.2M compared to $174.4M in the same period in 2024, an increase of 9.6%. Comparable store sales increased 9.3% versus 2024 with a two-year stack of 16.4%. For the year-to-date period ending January 3, 2026, total sales of $780.8M compared to $716.3M in the same period in 2024, an increase of 9.0%. Comparable store sales increased 9.8% compared to the same period last year; 13.3% on a two-year stack basis. Ken Seipel, CEO, said, "I am pleased to report that the top line momentum we've seen over the last five quarters continued through the holiday season with comparable store sales growth of 9.3% as a result of continued increases in both the number of transactions and average basket size. This growth comes on top of the 7.1% comp for the same period last year, giving us a two-year stack of 16.4%. Our holiday sales were fueled by our elevated product assortment, including brands, fashion and exciting off-price deals, all of which resonated well with our customers. This year, our in-store readiness was further supported with our "Joy Looks Good on You" marketing campaign with refreshed branding on social media. Since launching the campaign, we've had over twelve million viral views and engagements. As a result of holiday performance, we are reaffirming our previously provided outlook."