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Citi Trends
(NASDAQ:CTRN)
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Rating:53Neutral
Price Target:
$62.00
▼(-10.26% Downside)
Action:Reiterated
Date:09/12/26
CTRN’s score is held back primarily by mixed financial quality (thin margins, elevated leverage, and weakened free cash flow) and bearish technical momentum. These are partially offset by a strong, guidance-raising earnings call that signals improving operations, but the high P/E with no dividend support limits valuation appeal.
Positive Factors
Sustained comparable-sales growth
Repeated comparable-sales growth indicates that Citi Trends is gaining customer traction across its store base rather than relying on a single seasonal benefit. Sustained demand supports better store productivity, more efficient fixed-cost absorption, and a stronger foundation for future revenue growth.
Negative Factors
Thin profitability cushion
A sub-1% net margin leaves limited room for execution mistakes, demand softness, or cost inflation to be absorbed before earnings are affected. Even with recent improvement, the compressed profitability profile makes sustained margin discipline essential to preserve cash generation and fund growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained comparable-sales growth
Repeated comparable-sales growth indicates that Citi Trends is gaining customer traction across its store base rather than relying on a single seasonal benefit. Sustained demand supports better store productivity, more efficient fixed-cost absorption, and a stronger foundation for future revenue growth.
Read all positive factors
Citi Trends (CTRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$488.27M
Dividend Yield1.67%
Average Volume (3M)159.24K
Price to Earnings (P/E)62.2
Beta (1Y)1.69
Revenue Growth11.15%
EPS GrowthN/A
CountryUS
Employees2,500
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.89
Shares Outstanding8,339,447
10 Day Avg. Volume144,949
30 Day Avg. Volume159,240
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$81.00Price Target Upside17.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.6
Revenue Forecast (FY)$902.80M
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 through retail sales of merchandise sold in its stores. Its core revenue stream is the sale of value-priced products across key categories including apparel (e.g., men’s, women’s, and children’s clothing), accesso...
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
Positive
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
Income Statement
58
Neutral
Balance Sheet
49
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 869.97M | 819.96M | 753.08M | 747.94M | 795.01M | 991.60M |
| Gross Profit | 341.23M | 306.16M | 282.04M | 285.12M | 310.99M | 407.53M |
| EBITDA | 27.28M | 24.33M | -18.19M | 3.41M | 96.93M | 99.94M |
| Net Income | 7.34M | 5.21M | -43.17M | -11.98M | 58.89M | 62.24M |
Balance Sheet | ||||||
| Total Assets | 487.01M | 471.17M | 462.77M | 518.72M | 544.26M | 474.02M |
| Cash, Cash Equivalents and Short-Term Investments | 55.89M | 66.09M | 61.09M | 79.71M | 103.50M | 49.79M |
| Total Debt | 224.85M | 223.32M | 220.40M | 234.65M | 267.60M | 216.11M |
| Total Liabilities | 362.36M | 354.85M | 349.59M | 361.01M | 377.81M | 357.88M |
| Stockholders Equity | 124.65M | 116.32M | 113.18M | 157.71M | 166.44M | 116.14M |
Cash Flow | ||||||
| Free Cash Flow | 6.50M | 624.00K | -13.96M | -24.45M | -16.53M | 44.61M |
| Operating Cash Flow | 34.77M | 20.95M | -3.85M | -9.58M | 5.75M | 74.32M |
| Investing Cash Flow | -27.64M | -8.49M | -10.11M | -13.36M | 60.18M | -29.52M |
| Financing Cash Flow | -1.63M | -7.45M | -4.66M | -854.00K | -12.23M | -118.19M |
Citi Trends Technical Analysis
Negative
69.09
Price Trends
67.21
Negative
58.23
Negative
51.81
Positive
Market Momentum
-3.00
Positive
28.50
Positive
9.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTRN, the sentiment is Negative. The current price of 69.09 is above the 20-day moving average (MA) of 65.76, above the 50-day MA of 67.21, and above the 200-day MA of 51.81, indicating a neutral trend. The MACD of -3.00 indicates Positive momentum. The RSI at 28.50 is Positive, neither overbought nor oversold. The STOCH value of 9.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $358.64M | 13.15 | 21.10% | 1.05% | -2.25% | -24.65% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $359.99M | 8.11 | 7.60% | ― | 3.00% | ― | |
57 Neutral | $310.83M | 18.24 | 5.83% | 3.32% | -0.84% | ― | |
53 Neutral | $488.27M | 62.24 | 6.19% | 1.67% | 11.15% | ― | |
50 Neutral | $206.35M | 16.50 | 4.21% | ― | 3.61% | 7189.81% | |
45 Neutral | $44.70M | -0.34 | 172.19% | 4.14% | -15.92% | -590.26% |
* Consumer Cyclical Sector Average
CTRN
Citi Trends
55.39
23.00
71.01%
DBI
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6.02
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GCO
Genesco
32.76
-0.37
-1.12%
PLCE
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2.04
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-67.92%
ZUMZ
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13.20
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JILL
JJill
23.94
6.27
35.45%
Citi Trends Corporate Events
Business Operations and StrategyExecutive/Board Changes
Citi Trends Announces Planned CFO Leadership Transition
Neutral
Sep 11, 2026
On September 10, 2026, Citi Trends, Inc. announced that Executive Vice President, Chief Financial Officer and Chief Accounting Officer Heather Plutino has decided to step down from her roles for personal reasons. She will continue in her current p...
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.