Citi Trends (CTRN) Q4 2025 earnings summary

Executive summary

• Achieved 6.4% comparable store sales growth in Q4 2024, a sequential improvement driven by higher traffic, basket size, and conversion, with strong two-year acceleration.

• Strengthened position as a neighborhood-based off-price retailer serving African American customers, leveraging customer research to refine product and brand strategies.

• Entered the execute phase of a three-stage turnaround, focusing on consistent execution, supply chain speed, and inventory efficiency.

• Ended fiscal year with $61.1M in cash, no debt, and total liquidity of $136M.

• Store count at year-end was 591 after opening 1, remodeling 35, and closing 12 locations.

Financial highlights

• Q4 total sales reached $211.2M, with gross margin rate expanding 60 basis points to 39.7% year-over-year.

• Adjusted EBITDA for Q4 was $7.1M, compared to $10M in Q4 2023; normalized for one-time items, $7.4M vs. $7.6M last year.

• Full-year 2024 sales were $753.1M, up 0.7% year-over-year; comparable store sales up 3.4% on a 52-week basis.

• Adjusted gross margin for the year was 37.5%; adjusted EBITDA loss of $14.2M, with $16.5M in one-time items dragging EBITDA.

• Q4 2024 net loss was $(14.2)M (adjusted net loss $(12.8)M), impacted by a $15.5M non-cash tax valuation allowance.

Outlook and guidance

• 2025 guidance: full-year comp sales growth expected in low to mid-single digits, gross margin to expand at least 220 basis points, and EBITDA projected at $5–$9M, a $19–$23M improvement over 2024.

• SG&A to leverage 30–50 basis points despite inflationary pressures; effective tax rate expected to be ~0%.

• CapEx planned at $18–$22M; plans to open up to five new stores, close up to five, and remodel approximately 50 locations.

• Q1 2025 to-date sales trends remain in the mid-single digits.