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Citi Trends(CTRN) - 2026 Q1 - Quarterly Results
CTRNCiti Trends(CTRN)2025-06-03 10:57
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Financial Performance - Comparable store sales growth of 9.9% and total year-over-year sales growth of 8.3%, or 15.4million,to15.4 million, to 201.7 million[1][6] - Adjusted EBITDA of 5.4million,anincreaseof5.4 million, an increase of 6.2 million compared to the prior year, with a flowthrough of 40%[1][10] - Net income of 0.9million,comparedtoanetlossof0.9 million, compared to a net loss of 3.4 million in Q1 2024, with diluted earnings per share of 0.11[6][10]−AdjustedoperatingincomeforQ12025was0.11[6][10] - Adjusted operating income for Q1 2025 was 1,036 million, compared to a loss of 5,589millioninQ12024[22]−AdjustednetincomeforQ12025was5,589 million in Q1 2024[22] - Adjusted net income for Q1 2025 was 1,418 million, improving from a loss of 2,663millioninQ12024[22]−Adjusteddilutedearningspershare(EPS)forQ12025was2,663 million in Q1 2024[22] - Adjusted diluted earnings per share (EPS) for Q1 2025 was 0.17, compared to a loss of 0.32inQ12024[22]−AdjustedEBITDAforQ12025was0.32 in Q1 2024[22] - Adjusted EBITDA for Q1 2025 was 5,406 million, a significant increase from a loss of 796millioninQ12024[23]InventoryandExpenses−Merchandiseinventorydecreasedby7.6796 million in Q1 2024[23] Inventory and Expenses - Merchandise inventory decreased by 7.6% to 109.9 million, with a 45% reduction in aged product compared to Q1 2024[10] - SG&A expenses leveraged 270 basis points compared to Q1 2024, reflecting disciplined cost controls amid increased sales[6][10] - Adjusted SG&A expenses for Q1 2025 were 74,404million,comparedto74,404 million, compared to 72,831 million in Q1 2024[22] - The company incurred 402millionincyberincidentexpensesduringQ12025[22]−Othernon−recurringexpensesamountedto402 million in cyber incident expenses during Q1 2025[22] - Other non-recurring expenses amounted to 885 million in Q1 2025, down from 1,380millioninQ12024[22]−Thecompanyreportedanassetimpairmentof1,380 million in Q1 2024[22] - The company reported an asset impairment of 64 million in Q1 2025, while there was no such expense in Q1 2024[22] Future Outlook - The company expects full-year comparable store sales growth in the mid-single digits, and EBITDA to be in the range of 6millionto6 million to 10 million, a significant improvement from 2024[11] - Plans to open up to 5 new stores and remodel approximately 50 stores during fiscal 2025[11] - Total liquidity at the end of Q1 2025 was approximately 117.0million,withnodebtand117.0 million, with no debt and 41.6 million in cash[10][11] Operational Focus - The company continues to focus on enhancing customer experience and operational improvements to drive future growth[4][5] Interest and Tax - Interest income for Q1 2025 was 458million,downfrom458 million, down from 849 million in Q1 2024[22] - The company did not report any income tax benefit in Q1 2025, compared to a benefit of $2,773 million in Q1 2024[22] Gross Margin - Gross margin improved to 39.6%, up 90 basis points from 38.7% in Q1 2024, driven by higher initial markup and lower shrink[6][10]