Citi Trends (CTRN)
NASDAQ:CTRN
Want to see CTRN full AI Analyst Report?
Top Page
Citi Trends
(NASDAQ:CTRN)
Select Model
Select Model
Rating:50Neutral
Price Target:
$44.00
▼(-14.88% Downside)
Action:Reiterated
Date:06/02/26
Overall score reflects weak-to-mixed financial performance (thin profitability, high leverage, and minimal free cash flow) and a stretched valuation (high P/E), partially offset by a notably strong and upgraded FY26 outlook from the latest earnings call and generally neutral technical conditions.
Positive Factors
Upgraded FY26 guidance and strong comp trends
Management's upgraded FY26 guidance, driven by 13.9% Q1 comps and sustained high-single-digit balance-of-year comps, signals durable operational momentum and repeatable customer demand. Over 2–6 months this supports revenue visibility, capacity to scale remodels/opens, and credibility of the turnaround plan.
Negative Factors
Elevated leverage and reduced equity cushion
High debt-to-equity (~1.9x) and a smaller equity cushion limit financial flexibility and increase vulnerability to sales or margin shocks. Over the next several months, elevated leverage constrains capital allocation choices, raises refinancing and covenant risk, and reduces ability to invest through downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Upgraded FY26 guidance and strong comp trends
Management's upgraded FY26 guidance, driven by 13.9% Q1 comps and sustained high-single-digit balance-of-year comps, signals durable operational momentum and repeatable customer demand. Over 2–6 months this supports revenue visibility, capacity to scale remodels/opens, and credibility of the turnaround plan.
Read all positive factors
Citi Trends (CTRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$386.62M
Dividend YieldN/A
Average Volume (3M)106.34K
Price to Earnings (P/E)28.9
Beta (1Y)1.53
Revenue Growth10.48%
EPS GrowthN/A
CountryUS
Employees2,600
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.64
Shares Outstanding8,361,054
10 Day Avg. Volume104,338
30 Day Avg. Volume106,337
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)2.99
Price to Sales (P/S)0.42
P/FCF Ratio557.15
Enterprise Value/Market Cap1.40
Enterprise Value/Revenue0.66
Enterprise Value/Gross Profit1.77
Enterprise Value/Ebitda23.07
Forecast
1Y Price Target
$73.00Price Target Upside41.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.07
Revenue Forecast (FY)$874.70M
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...
How the Company Makes Money
Citi Trends primarily makes money by selling merchandise through its physical retail stores, generating revenue at the point of sale from customers purchasing its products. Its core revenue stream is net sales from retail merchandise, which genera...
Citi Trends Earnings Call Summary
Earnings Call Date:Jun 02, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 25, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operating and financial result for Q1 FY26 with meaningful top-line growth, margin improvement, and a significant increase in adjusted EBITDA. Management highlighted broad-based category performance, improved inventory productivity, AI-driven improvements, and a clean balance sheet. Key near-term headwinds are increased freight/fuel surcharges (which reduced earlier margin expansion expectations) and higher absolute SG&A and incentive accruals tied to improved performance. Store growth cadence in 2026 is still being re-established, though new stores and remodels are performing above expectations and management provided upgraded full-year guidance. On balance, the operational momentum and upgraded outlook outweigh the manageable headwinds.Positive Updates
Strong Top-Line Growth
Total sales of $231.0M in Q1 FY26, up 14.4% year-over-year; comparable store sales increased 13.9% with a 2-year stack of +23.8%, marking 20–21 consecutive months of comp growth.
Negative Updates
Higher Freight and Fuel Surcharges
Freight expense rose due to fuel surcharges, partially offsetting merchandise margin gains; management lowered prior gross margin expansion expectations (from +100 bps previously to a revised +50–70 bps) and expects the freight headwind to continue through the year.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total sales of $231.0M in Q1 FY26, up 14.4% year-over-year; comparable store sales increased 13.9% with a 2-year stack of +23.8%, marking 20–21 consecutive months of comp growth.
Read all positive updates
Company Guidance
Management updated fiscal 2026 guidance calling for comparable store sales growth of 8%–10% (implying high‑single‑digit comps for the balance of the year) and total sales growth of 9%–11% (management’s plan ~10%), gross margin expansion of 50–70 bps versus FY25 (FY25 gross margin 39.6%) while noting fuel surcharge headwinds that reduced prior expectations, adjusted SG&A leverage of 140–160 bps versus last year, adjusted EBITDA of $35M–$40M (EBITDA margin expanding ~200 bps vs FY25), about 25 new store openings, ~4 closures and ~50 remodels, and full‑year capex of $35M–$40M; they expect year‑end cash roughly flat to last year’s ~$66M (Q1 cash $81.1M), no debt/no revolver draws, and incorporated Q1 metrics (Q1 sales $231M, +14.4%; Q1 comp +13.9%, 2‑yr stack +23.8%; Q1 adjusted EBITDA $13.9M; Q1 gross margin 40%; quarter‑end inventory +4.8% YoY; Q1 adjusted SG&A $78.3M, 33.9% of sales, leveraging 250 bps).Citi Trends Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
40
Negative
Cash Flow
34
Negative
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 819.96M | 753.08M | 747.94M | 795.01M | 991.60M |
| Gross Profit | 306.16M | 282.04M | 285.12M | 310.99M | 407.53M |
| EBITDA | 11.47M | -18.19M | 3.41M | 96.93M | 99.94M |
| Net Income | 5.21M | -43.17M | -11.98M | 58.89M | 62.24M |
Balance Sheet | |||||
| Total Assets | 471.17M | 462.77M | 518.72M | 544.26M | 474.02M |
| Cash, Cash Equivalents and Short-Term Investments | 66.09M | 61.09M | 79.71M | 103.50M | 49.79M |
| Total Debt | 223.32M | 220.40M | 234.65M | 267.60M | 216.11M |
| Total Liabilities | 354.85M | 349.59M | 361.01M | 377.81M | 357.88M |
| Stockholders Equity | 116.32M | 113.18M | 157.71M | 166.44M | 116.14M |
Cash Flow | |||||
| Free Cash Flow | 624.00K | -13.96M | -24.45M | -16.53M | 44.61M |
| Operating Cash Flow | 20.95M | -3.85M | -9.58M | 5.75M | 74.32M |
| Investing Cash Flow | -8.49M | -10.11M | -13.36M | 60.18M | -29.52M |
| Financing Cash Flow | -7.45M | -4.66M | -854.00K | -12.23M | -118.19M |
Citi Trends Technical Analysis
Positive
51.69
Price Trends
45.30
Positive
45.59
Positive
41.87
Positive
Market Momentum
0.14
Negative
53.14
Neutral
53.33
Neutral
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 51.69 is above the 20-day moving average (MA) of 43.57, above the 50-day MA of 45.30, and above the 200-day MA of 41.87, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 53.14 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTRN.
Citi Trends Risk Analysis
Citi Trends disclosed 29 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $443.13M | 20.10 | 3.68% | ― | 4.60% | ― | |
59 Neutral | $197.51M | 7.04 | 23.05% | 2.25% | -2.34% | -31.72% | |
57 Neutral | $396.16M | 19.51 | 4.41% | ― | 4.68% | 3252.79% | |
51 Neutral | $462.33M | -50.02 | -2.97% | 2.68% | -3.87% | 39.59% | |
50 Neutral | $386.62M | 28.94 | 4.67% | ― | 10.48% | ― | |
47 Neutral | $79.52M | -0.88 | 532.94% | ― | -12.80% | 11.78% |
* Consumer Cyclical Sector Average
CTRN
Citi Trends
43.06
9.23
27.28%
DBI
Designer Brands
8.44
4.75
128.60%
GCO
Genesco
37.93
15.26
67.31%
PLCE
Children's Place
3.52
-3.34
-48.69%
ZUMZ
Zumiez
17.39
5.81
50.17%
JILL
JJill
13.08
-3.41
-20.66%
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.