Citi Trends (CTRN) 27th Annual ICR Conference 2025 summary

Recent performance and turnaround progress

• Reported Q3 comp sales growth of 5.7% and a holiday comp of 7.1%, the best since 2012.

• Sequential monthly sales improvements in fall, with November at +9% and December at +6%.

• $26 million in unproductive inventory marked down to create open-to-buy for fresh product.

• Customer response to business improvements has been strong, with increased store traffic and engagement.

• Turnaround driven by renewed focus on core customer, inventory markdowns, and operational improvements.

Customer insights and merchandising strategy

• Core customer is fashion-conscious, aspirational, and not primarily budget-driven, with a focus on African-American communities.

• Top two customer tiers have incomes between $50,000 and $150,000, with high store visit frequency.

• Three-tiered merchandising strategy targets all income levels, with opening price points and branded products.

• New branded and off-price products are resonating with both African-American and Hispanic customers.

• Iconic brands and exclusive deals drive customer excitement and social media buzz.

Operational and foundational improvements

• Simplified product allocation and improved planning practices to match inventory with store performance.

• Systematic repair of IT systems, talent, and retail fundamentals underway.

• AI-based allocation system being tested to optimize product placement and reduce markdowns.

• Remodel program generating 5% sales lift in updated stores.

• Operational excellence prioritized via foundational retail best practices and advanced allocation methods.