Citi Trends (CTRN) Q3 2026 earnings summary

Executive summary

• Achieved Q3 2025 total sales of $197.1 million, up 10.1% year-over-year, with comparable store sales growth of 10.8% and strong performance across all categories and geographies.

• Net loss for Q3 2025 was $6.9 million, a slight improvement from $7.2 million in Q3 2024; year-to-date net loss narrowed to $2.2 million from $29.0 million in the prior year.

• Transformation strategy is progressing, focusing on operational discipline, customer connection, and a clear roadmap to $45 million EBITDA by 2027.

• Strong brand positioning as a culturally relevant, neighborhood-based off-price retailer focused on the African American consumer, with differentiated assortments and community engagement.

• Operated 593 stores as of November 1, 2025, with 24 remodels and 3 new openings in Q3.

Financial highlights

• Q3 gross margin was 38.9%, down 90 basis points year-over-year due to freight expense timing and prior year low markdowns.

• Q3 adjusted EBITDA loss was $2.9 million, improved from $3.3 million loss in Q3 2024; year-to-date adjusted EBITDA loss improved by $21.2 million year-over-year.

• Q3 SG&A expense was $79.3 million ($79.5 million adjusted), with SG&A rate improved by 130 basis points to 40.3%.

• Cash and cash equivalents at quarter-end were $51.1 million, with no debt and no borrowings under a $75 million credit facility.

• Inventory at quarter-end was $123.5 million, down 3.1% year-over-year; average in-store inventory up 4.5%.

Outlook and guidance

• Raised full-year 2025 guidance: expecting high single-digit comp store sales growth, gross margin expansion of ~230 basis points, and SG&A leverage of ~90 basis points.

• Full-year EBITDA expected in the range of $10–$12 million, up from prior guidance of $7–$11 million.

• Q4 comps expected to be up high single digits; Q4 gross margin projected at 40–41%; Q4 EBITDA expected at $10–$12 million.

• Long-term plan targets $900 million in sales, 42% gross margin, and $45 million EBITDA by 2027, with 25 new stores in 2026 and 40 in 2027.

• Full-year capital expenditures expected at $23 million, focused on new store openings, remodels, and systems investments.