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Citi Trends (CTRN)
NASDAQ:CTRN
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Citi Trends (CTRN) AI Stock Analysis

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CTRN

Citi Trends

(NASDAQ:CTRN)

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Neutral 66 (OpenAI - Gpt-5.6Sol)
Rating:66Neutral
Price Target:
$80.00
▲(15.79% Upside)
Action:Reiterated
Date:08/25/26
CTRN scores mid-to-high primarily due to strong technical strength and a very positive earnings-call outlook with raised guidance. The score is held back by the company’s still-developing financial quality (thin/volatile operating profitability and balance-sheet risk factors) and a stretched valuation (high P/E with no dividend yield provided).
Positive Factors
Sustained Comparable-Sales Growth
Persistent comparable-store growth indicates broad customer and merchandise traction rather than reliance only on new locations. If sustained, it can support operating leverage, strengthen store economics, and provide a durable base for future expansion.
Negative Factors
Thin and Volatile Operating Profitability
The recovery remains vulnerable because operating profit is thin relative to sales. Small changes in markdowns, labor, freight, or demand could materially reduce earnings, leaving limited buffer if retail conditions weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Comparable-Sales Growth
Persistent comparable-store growth indicates broad customer and merchandise traction rather than reliance only on new locations. If sustained, it can support operating leverage, strengthen store economics, and provide a durable base for future expansion.
Read all positive factors

Citi Trends (CTRN) vs. SPDR S&P 500 ETF (SPY)

Citi Trends Business Overview & Revenue Model

Company Description
Citi Trends, Inc. functions as a discount retail chain specializing in fashion apparel, accessories, and home goods. Its extensive product range includes a variety of clothing options for the entire family: men's fashion sportswear and footwear, w...
How the Company Makes Money
Citi Trends primarily makes money by selling merchandise directly to customers through its brick-and-mortar retail stores under the Citi Trends and City Gear banners. Its core revenue stream is retail sales across major product categories includin...

Citi Trends Earnings Call Summary

Earnings Call Date:Aug 25, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Dec 01, 2026
Earnings Call Sentiment Positive
The call conveyed a strong operational turnaround with consistent comparable sales growth, margin expansion, inventory efficiency, a clear upgrade to full-year guidance, and multiple strategic initiatives (AI, CRM, store growth) that underpin future growth. The primary headwinds cited were higher freight/fuel surcharges, a modest Q2 EBITDA margin, and some near-term timing shifts in store openings. Overall, the positive results, raised outlook, and balance sheet flexibility outweigh the cited challenges.
Positive Updates
Comparable Store Sales Growth
Q2 comparable store sales increased 10.5% year-over-year and 19.7% on a 2-year basis; marks eighth consecutive quarter of comp growth and six straight quarters of +9% or better momentum.
Negative Updates
Freight and Fuel Surcharge Pressure
Rising fuel surcharges driving higher freight expense; management expects freight headwinds to continue through the year and has incorporated the impact into guidance.
Read all updates
Q2-2026 Updates
Negative
Comparable Store Sales Growth
Q2 comparable store sales increased 10.5% year-over-year and 19.7% on a 2-year basis; marks eighth consecutive quarter of comp growth and six straight quarters of +9% or better momentum.
Read all positive updates
Company Guidance
Citi Trends raised its full‑year guidance, now targeting comparable‑store sales growth of 9%–11% (up from 8%–10%) and total sales growth of 10%–12%; gross margin is expected to expand roughly 50–70 basis points versus FY‑25’s 39.6%; adjusted SG&A leverage is forecast at 160–180 bps of fiscal‑25; adjusted EBITDA is now $38–42 million (prior $35–40M) with EBITDA margin at the midpoint up ~32 bps versus FY‑25. Store plans were revised to ~20 new openings in 2026 (previously ~25) with ~40 targeted in 2027, remodels increased to ~60–65 (vs. ~50 prior), ~4 closures expected, and capex unchanged at $35–40 million. Balance sheet targets include quarter‑end cash of $55.9 million, year‑end cash roughly flat to last year’s $66 million, no debt and no draws on a $75 million revolver, and a newly approved $100 million shelf for optional capital flexibility; management cautioned ongoing freight/fuel surcharge headwinds while keeping the second‑half outlook unchanged.

Citi Trends Financial Statement Overview

Summary
Financials show a clear TTM recovery: revenue is growing, profitability turned positive (net margin ~1.4%), and free cash flow rebounded strongly (~$28.7M). Offsetting this improvement are thin/volatile operating profits (EBIT near break-even) and balance-sheet risk highlighted by previously elevated leverage and weak historical returns, making the recovery less “high-quality” and more execution-dependent.
Income Statement
56
Neutral
Balance Sheet
45
Neutral
Cash Flow
62
Positive
BreakdownTTMJan 2026Jan 2025Jan 2024Jan 2023Jan 2022
Income Statement
Total Revenue849.09M819.96M753.08M747.94M795.01M991.60M
Gross Profit337.06M306.16M282.04M285.12M310.99M407.53M
EBITDA32.14M24.33M-18.19M3.41M96.93M99.94M
Net Income12.09M5.21M-43.17M-11.98M58.89M62.24M
Balance Sheet
Total Assets496.19M471.17M462.77M518.72M544.26M474.02M
Cash, Cash Equivalents and Short-Term Investments81.10M66.09M61.09M79.71M103.50M49.79M
Total Debt226.46M223.32M220.40M234.65M267.60M216.11M
Total Liabilities370.85M354.85M349.59M361.01M377.81M357.88M
Stockholders Equity125.34M116.32M113.18M157.71M166.44M116.14M
Cash Flow
Free Cash Flow28.74M624.00K-13.96M-24.45M-16.53M44.61M
Operating Cash Flow52.80M20.95M-3.85M-9.58M5.75M74.32M
Investing Cash Flow-12.22M-8.49M-10.11M-13.36M60.18M-29.52M
Financing Cash Flow-1.03M-7.45M-4.66M-854.00K-12.23M-118.19M

Citi Trends Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price69.09
Price Trends
50DMA
65.89
Positive
100DMA
56.46
Positive
200DMA
50.53
Positive
Market Momentum
MACD
0.57
Positive
RSI
46.86
Neutral
STOCH
24.22
Neutral
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 69.09 is below the 20-day moving average (MA) of 71.64, above the 50-day MA of 65.89, and above the 200-day MA of 50.53, indicating a neutral trend. The MACD of 0.57 indicates Positive momentum. The RSI at 46.86 is Neutral, neither overbought nor oversold. The STOCH value of 24.22 is Neutral, 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 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$565.35M75.846.19%11.15%
62
Neutral
$361.09M17.473.68%4.60%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
58
Neutral
$290.51M13.7916.83%1.50%-2.59%-39.23%
57
Neutral
$300.66M19.964.73%4.68%3252.79%
47
Neutral
$265.06M25.003.57%3.66%-1.61%
44
Neutral
$55.82M-0.54245.71%-13.13%-54.20%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CTRN
Citi Trends
67.50
30.72
83.52%
DBI
Designer Brands
5.25
1.44
37.94%
GCO
Genesco
33.52
1.93
6.11%
PLCE
Children's Place
2.63
-2.36
-47.29%
ZUMZ
Zumiez
18.16
0.62
3.53%
JILL
JJill
19.17
3.07
19.06%

Citi Trends Corporate Events

Executive/Board ChangesShareholder Meetings
Citi Trends Shareholders Endorse Board, Pay and Auditor
Positive
Jun 12, 2026
On June 10, 2026, Citi Trends, Inc. held its 2026 annual meeting of stockholders in a virtual format, where shareholders elected eight directors to serve until the next annual meeting and strongly backed the board’s slate, with only limited ...
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.Date of analysis: Aug 25, 2026