Citi Trends (CTRN) Q4 2026 earnings summary

Executive summary

• Achieved strong transformation in 2025, with disciplined execution and renewed customer focus driving results.

• Entering 2026 with momentum, a clear strategy, and confidence in long-term growth.

• Q4 2025 total sales reached $230.4 million, up 9.1% year-over-year, with comparable store sales growth of 8.9% and a two-year stack of 15.3%.

• Fiscal 2025 total sales were $820.0 million, up 8.9% year-over-year, with comparable store sales growth of 9.7%.

• Net income for fiscal 2025 was $5.2 million, a $48.4 million improvement from the prior year, including an $11.0 million gain on the sale of the Savannah office building.

Financial highlights

• Q4 comparable store sales grew 8.9% year-over-year; two-year comp growth was 15.3%.

• Q4 total sales rose 9.1% to $230.4 million; adjusted EBITDA reached $11.9 million, up 67% from prior year.

• Full year 2025 sales increased 8.9% to $820 million; comparable store sales up 9.7%.

• Gross margin expanded 210 basis points to 39.6% for the year; adjusted EBITDA grew by $26 million to $11.8 million.

• Ended year with $66 million cash, no debt, and no revolver borrowings; access to a $75 million credit facility.

Outlook and guidance

• Fiscal 2026 sales growth expected at 6%-8%, with comparable store sales up 5%-7%.

• Gross margin to expand by ~100 basis points; adjusted EBITDA projected at $34-$38 million, nearly doubling prior year.

• Plan to open 25 new stores, remodel 50, and close 4; capital expenditures of $35-$40 million.

• Excluding equity-based compensation from adjusted SG&A and EBITDA metrics starting 2026.

• Q1 2026 has started strong with high-single digit comparable store sales growth.