Citi Trends(CTRN)
Search documents
Citi Trends(CTRN) - 2026 Q3 - Earnings Call Transcript
2025-12-02 15:02
Financial Data and Key Metrics Changes - In Q3 2025, total sales reached $197.1 million, reflecting a 10.1% increase compared to Q3 2024. Comparable store sales grew by 10.8%, with a two-year stack growth of 16.5% [25][27] - Adjusted EBITDA for the quarter was a loss of $2.9 million, an improvement from a loss of $3.3 million in the previous year [30] - Year-to-date comparable store sales increased by 10%, with a two-year comp stack of 12.3% [31] Business Line Data and Key Metrics Changes - Strong performance was noted across all product categories, with particular strength in children's, men's, and basic apparel [5][14] - The children's division achieved strong double-digit growth, while men's and women's footwear also showed positive momentum [14][15] - The company is focusing on expanding its best tier products and enhancing its offerings in the young men's and plus-size categories [43][12] Market Data and Key Metrics Changes - Sales increases were observed across all store volume groups and geographies, indicating broad-based improvement [6][26] - The company reported a consistent customer traffic increase, particularly during the back-to-school season and the pre-holiday period [5][6] Company Strategy and Development Direction - The company aims to achieve approximately $45 million of EBITDA by 2027, representing a $60 million increase from 2024 levels, driven by consistent comparable store sales performance and strategic new store expansion [4][24] - A three-phased transformation strategy is in place, focusing on repair, execution, and optimization to drive sustainable growth [36][37] - The company is investing in technology infrastructure, including a new CRM and loyalty platform, to enhance customer engagement [10][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, highlighting strong customer connection and cultural relevance as competitive advantages [8][9] - The company anticipates continued sales momentum into Q4, with expectations for high single-digit comp store sales growth [33][34] - Management acknowledged the need for ongoing improvements in execution and operational efficiency [18][37] Other Important Information - The company remodeled 24 stores in Q3 and plans to open three new stores, bringing the total to 593 locations across 33 states [20][22] - The company has no debt and maintains a strong cash position of $51 million, providing flexibility for growth initiatives [32] Q&A Session Summary Question: What are the biggest merchandising opportunities? - Management highlighted broad-based growth across categories, with significant opportunities in young men's and plus-size segments, as well as footwear [40][42] Question: How did sales trends perform throughout the quarter? - Management noted consistent shopping patterns, with strong performance in August and October, and minimal impact from macroeconomic changes [46][47] Question: What is the current status of extreme value deals? - Extreme value deals currently represent 2-3% of sales, with plans to increase this to about 10% as the company matures its offerings [52][54] Question: What is the plan for store openings in 2026? - The company plans to open stores in three distinct timeframes: early spring, July, and October, with a focus on consistent growth [56][57] Question: What progress has been made on shrink mitigation efforts? - New AI-capable camera systems have been rolled out in a third of stores, with plans for further expansion to reduce shrink rates [60][61] Question: Can you elaborate on the CRM and loyalty program? - The company plans to launch a CRM in Q1 2026, aimed at enhancing customer engagement and providing exclusive access to deals [64][66]
Citi Trends(CTRN) - 2026 Q3 - Earnings Call Transcript
2025-12-02 15:02
Financial Data and Key Metrics Changes - In Q3 2025, total sales reached $197.1 million, reflecting a 10.1% increase compared to Q3 2024. Comparable store sales grew by 10.8%, with a two-year stack growth of 16.5% [25][26] - Year-to-date comparable store sales increased by 10%, with a two-year stack of 12.3% [30] - Gross margin for Q3 was 38.9%, which is 90 basis points lower than Q3 2024 but aligned with expectations [27][28] - Adjusted EBITDA for Q3 was a loss of $2.9 million, an improvement from a loss of $3.3 million in the previous year [30] Business Line Data and Key Metrics Changes - Strong performance was noted across all product categories, with particular strength in children's, men's, and basic apparel [5][6] - The children's division achieved double-digit growth, while men's and women's categories also showed positive momentum [14][15] Market Data and Key Metrics Changes - Sales increases were observed across all store volume groups and geographies, indicating broad-based improvement [6][26] - The company reported strong customer traffic and basket performance, demonstrating the loyalty of its customer base [9][10] Company Strategy and Development Direction - The company aims to achieve approximately $45 million of EBITDA by 2027, representing a $60 million increase from 2024 levels, driven by consistent comparable store sales performance and strategic new store expansion [4][24] - A three-phased transformation strategy is in place, focusing on repair, execution, and optimization to drive sustainable growth [36][37] - The company is investing in technology infrastructure, including a new CRM and loyalty platform, to enhance customer relationships and engagement [10][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, highlighting the resilience of the consumer despite macroeconomic changes [47] - The company expects continued sales momentum into Q4, with full-year comparable store sales growth projected at high single digits [32][33] Other Important Information - The company remodeled 24 stores in Q3 and plans to open three new stores, bringing the total to 593 locations across 33 states [20][21] - The company has no debt and maintains a strong cash position of $51 million, providing flexibility for growth initiatives [32] Q&A Session Summary Question: What are the biggest merchandising opportunities? - Management highlighted growth in young men's and women's plus-size categories, as well as opportunities in footwear and extreme value segments [40][42][45] Question: How did sales trends perform throughout the quarter? - Sales patterns remained consistent, with strong performance in August and October, while the middle month showed slight softness [46][48] Question: What is the current status of extreme value deals? - Extreme value deals currently represent 2-3% of sales, with plans to increase this to about 10% as the company matures its offerings [54][55] Question: What is the plan for store openings in 2026? - The company plans to open stores in three distinct timeframes: early spring, July, and October, with a focus on consistent growth [57][58] Question: What progress has been made on shrink mitigation efforts? - New AI-capable camera systems have been rolled out to enhance loss prevention, with expectations for a decrease in shrink rates in 2026 [61][62] Question: Can you elaborate on the CRM and loyalty program? - The company plans to launch a CRM in Q1 2026, aimed at enhancing customer engagement and providing exclusive access to deals [66][67]
Citi Trends(CTRN) - 2026 Q3 - Earnings Call Transcript
2025-12-02 15:00
Financial Data and Key Metrics Changes - In Q3 2025, total sales reached $197.1 million, reflecting a 10.1% increase compared to Q3 2024. Comparable store sales grew by 10.8%, with a two-year stack growth of 16.5% [23][24] - Year-to-date comparable store sales increased by 10%, or 12.3% on a two-year basis, driven by a 6% increase in transactions [28][30] - Gross margin for Q3 was 38.9%, which is 90 basis points lower than Q3 2024 but aligned with expectations [24][25] - Adjusted EBITDA for the quarter was a loss of $2.9 million, an improvement from a loss of $3.3 million a year ago [28] Business Line Data and Key Metrics Changes - Strong performance was noted across all product categories, with particular strength in children's, men's, and basic apparel [5][6] - The children's division achieved double-digit growth, while men's and women's categories also showed positive momentum [12][13] - The company is focusing on expanding its best tier of products and enhancing its offerings in the footwear category [12][13] Market Data and Key Metrics Changes - Sales increases were observed across all store volume groups and geographies, indicating broad-based improvement [6][24] - The company is strategically positioned to capitalize on the African American consumer market, which is central to its business model [8][9] Company Strategy and Development Direction - The company aims to achieve approximately $45 million of EBITDA by 2027, representing a $60 million increase from 2024 levels, driven by consistent comparable store sales performance and strategic new store expansion [4][22] - A three-phased transformation strategy is in place, focusing on repair, execution, and optimization to drive sustainable growth [34][35] - The company plans to remodel 50 stores annually and open about 25 new stores in 2026, followed by at least 40 stores per year from 2027 onward [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, highlighting strong customer traffic and positive sales momentum heading into the holiday season [6][8] - The company anticipates continued SG&A leverage and gross margin expansion, with full-year EBITDA expected to be in the range of $10-$12 million [31][32] - Management acknowledged the need for ongoing improvements in execution and inventory management to sustain growth [17][18] Other Important Information - The company has implemented AI-based allocation systems to enhance inventory efficiency and reduce markdowns [17][18] - A new CRM and loyalty platform is being developed to deepen customer engagement and enhance long-term value [10][52] Q&A Session Summary Question: Insights on merchandising opportunities for sales growth - Management highlighted broad-based growth across categories, with significant opportunities in young men's and plus-size women's segments, as well as in footwear [37][38][39] Question: Impact of government programs on consumer behavior - Management noted that consumer shopping patterns remained consistent despite macroeconomic changes, with strong performance in August and October [41][42] Question: Status of extreme value deals and future expectations - Current extreme value deals account for 2-3% of sales, with plans to increase this to about 10% as the company matures its offerings [43][44] Question: Store opening cadence for 2026 and beyond - The company plans to open stores in early spring, July, and October, with a balanced approach to new store openings [45][46] Question: Progress on shrink mitigation efforts - New AI-capable camera systems have been rolled out to enhance loss prevention, with expectations for a decrease in shrink rates in 2026 [48][49] Question: Details on the CRM and loyalty program - The CRM system is expected to launch in Q1 2026, aimed at enhancing customer engagement and providing exclusive access to deals [51][52]
Should You Chase Citi Trends After Q3 Earnings?
Benzinga· 2025-12-02 13:40
Core Viewpoint - Citi Trends reported Q3 results with total sales of $197.1 million, a gross margin of 38.9%, and a net loss of $6.9 million, indicating a mixed performance despite higher store traffic [1] Financial Performance - Total sales for Q3 reached $197.1 million, reflecting an increase in store traffic [1] - The company experienced a gross margin of 38.9% [1] - A net loss of $6.9 million was reported for the quarter [1] Adhishthana Cycle Analysis - Citi Trends is currently in Phase 10 of its 18-phase Adhishthana cycle, characterized by volatility and early peak-formation attempts [2][5] - The stock has progressed through the ascent leg of the Himalayan Formation following a Cakra breakout [2] - The Cakra formation occurred between January 2022 and Phase 8, leading to a significant rally of approximately 174% in Phase 9 [7] Peak Formation Insights - The peak-formation window for Citi Trends is anticipated to occur between late March and early May 2026 [8] - Until this peak-formation window arrives, the bullish ascent is expected to continue, albeit with volatility [9] Investor Outlook - For existing holders, it is advised to maintain positions while monitoring the peak-formation window in 2026, where risk may increase [11] - Prospective buyers should consider the stock for short-term tactical trades rather than long-term investments, due to current market conditions [12] - The overall structural outlook for Citi Trends remains bullish, but the opportunity for a sustainable long-term entry has not yet materialized [13]
Citi Trends(CTRN) - 2026 Q3 - Quarterly Results
2025-12-02 11:56
Sales Performance - Q3 2025 total sales reached $197.1 million, a 10.1% increase compared to Q3 2024, with comparable store sales growth of 10.8%[6] - Year-to-date total sales of $589.6 million, reflecting an 8.8% increase versus 2024, with comparable store sales growth of 10.0%[11] - Net sales for Q3 2025 were $197,091,000, an increase of 10.3% compared to $179,066,000 in Q3 2024[16] Financial Metrics - Gross margin for Q3 2025 was 38.9%, a decline of 90 basis points compared to Q3 2024[6] - SG&A expenses for Q3 2025 were $79.3 million, up from $74.7 million in Q3 2024, reflecting higher sales processing costs[6] - Net loss for Q3 2025 was $6.9 million, compared to a net loss of $7.2 million in Q3 2024[6] - Adjusted net loss for Q3 2025 was $7,089,000, compared to an adjusted net loss of $6,524,000 in Q3 2024[21] - Adjusted EBITDA loss improved to $2.9 million in Q3 2025 from a loss of $3.3 million in Q3 2024[11] - Adjusted EBITDA for Q3 2025 was $(2,912,000), an improvement from $(3,332,000) in Q3 2024[21] Future Projections - The company expects full-year EBITDA to be in the range of $10 million to $12 million, representing a $24 million to $26 million improvement compared to 2024[11] - For Q4 2025, comparable store sales are expected to increase by high-single digits, with gross margin projected between 40% and 41%[11] - The company has set a target of achieving approximately $45 million in EBITDA by fiscal 2027, a $60 million improvement from 2024 levels[5] Asset and Liability Changes - Total assets decreased to $464,260,000 in Q3 2025 from $467,076,000 in Q3 2024[18] - Total liabilities increased to $356,430,000 in Q3 2025 from $336,806,000 in Q3 2024[18] - Cash and cash equivalents rose to $51,098,000 in Q3 2025, up from $38,872,000 in Q3 2024[18] - Inventory decreased to $123,536,000 in Q3 2025 from $127,514,000 in Q3 2024[18] Store Operations - The company plans to open 3 new stores and remodel 62 stores in fiscal 2025, while closing 4 locations[11] - The company reported a gain on the sale of a building amounting to $10,960,000 during the thirty-nine weeks ended November 1, 2025[22]
Citi Trends GAAP EPS of -$0.86 misses by $0.01, revenue of $197.09M beats by $9.76M (NASDAQ:CTRN)
Seeking Alpha· 2025-12-02 11:48
Group 1 - The article does not provide any specific content related to a company or industry, as it appears to be a technical issue regarding browser settings and ad-blockers [1]
Citi Trends Announces Third Quarter Fiscal 2025 Results
Businesswire· 2025-12-02 11:45
Core Insights - Citi Trends, Inc. reported its third-quarter results for the period ending November 1, 2025, highlighting its position as a leading off-price value retailer for African American families in the U.S. [1] Financial Performance - The company’s metrics for the third quarter are compared to the 13-week quarter and 39-week year-to-date period ended November 2, 2024, indicating a focus on year-over-year performance analysis [1]. Leadership Commentary - CEO Ken Seipel provided insights into the company's performance and strategic direction, emphasizing the importance of the reported results in the context of the current retail environment [1].
Top Wall Street Forecasters Revamp Citi Trends Price Expectations Ahead Of Q3 Earnings
Benzinga· 2025-11-28 07:01
Citi Trends, Inc. (NASDAQ:CTRN) will release earnings results for the third quarter before the opening bell on Tuesday, Dec. 2.Analysts expect the Savannah, Georgia-based company to report quarterly loss at 79 cents per share, versus a year-ago loss of 78 cents per share. The consensus estimate for Citi Trends' quarterly revenue is $192.73 million, compared to $179.1 million a year earlier, according to data from Benzinga Pro.On Aug. 26, Citi Trends reported second-quarter sales of $190.75 million (+8% year ...
Top Wall Street Forecasters Revamp Citi Trends Price Expectations Ahead Of Q3 Earnings - Citi Trends (NASDAQ:CTRN)
Benzinga· 2025-11-28 07:01
Citi Trends, Inc. (NASDAQ:CTRN) will release earnings results for the third quarter before the opening bell on Tuesday, Dec. 2.Analysts expect the Savannah, Georgia-based company to report quarterly loss at 79 cents per share, versus a year-ago loss of 78 cents per share. The consensus estimate for Citi Trends' quarterly revenue is $192.73 million, compared to $179.1 million a year earlier, according to data from Benzinga Pro.On Aug. 26, Citi Trends reported second-quarter sales of $190.75 million (+8% year ...
Top 2 Consumer Stocks That May Keep You Up At Night This Month
Benzinga· 2025-11-26 00:13
Core Insights - Two stocks in the consumer discretionary sector are signaling potential warnings for momentum-focused investors as of November 25, 2025 [1] Company Performance - Ross Stores Inc reported better-than-expected third-quarter financial results and raised its fourth-quarter GAAP EPS guidance, with a stock price increase of approximately 10% over the past five days and a 52-week high of $177.32 [6] - The RSI value for Ross Stores is 80.5, indicating it is overbought [6] - Citi Trends reported second-quarter sales of $190.75 million, an 8% year-over-year increase, surpassing analyst expectations, with a stock price increase of around 25% over the past month and a 52-week high of $45.63 [6] - The RSI value for Citi Trends is 77.3, also indicating it is overbought [6]