Citi Trends(CTRN) - 2026 Q4 - Annual Results

Sales Performance - Q4 2025 total sales reached $230.4 million, with comparable store sales growth of 8.9% and a two-year stack of 15.3%[1] - Fiscal 2025 total sales amounted to $820.0 million, reflecting a 9.7% increase in comparable store sales and a two-year stack growth of 13.1%[1] - Net sales for Q4 2025 reached $230,393, a 9.4% increase from $211,172 in Q4 2024[20] - For the fiscal year ending January 31, 2026, net sales totaled $819,962, up 8.9% from $753,079 in the previous fiscal year[20] Profitability - Net income for Q4 2025 was $7.4 million, a significant improvement from a net loss of $14.2 million in Q4 2024[6] - Adjusted EBITDA for Q4 2025 was $11.9 million, compared to $7.1 million in Q4 2024, marking a $4.8 million increase[6] - The company reported an adjusted net income of $7,182 for Q4 2025, compared to an adjusted net loss of $12,773 in Q4 2024[25] - Adjusted EBITDA for Q4 2025 was $11,897, a 67.5% increase from $7,098 in Q4 2024[25] Financial Metrics - Gross margin for fiscal 2025 was 39.6%, an increase of 210 basis points compared to 2024, driven by lower markdowns and improved inventory management[11] - Cash at the end of Q4 2025 was $66.1 million, with no debt and no borrowings under a $75 million credit facility[11] - Total assets as of January 31, 2026, were $471,171, an increase from $462,769 as of February 1, 2025[22] - The adjusted EBITDA margin for the fiscal year 2026 was 2.1% based on sales of $819,962[33] Expenses and Cost Management - SG&A expenses for fiscal 2025 were $313.2 million, reflecting a 120 basis point leverage compared to 2024[11] - Selling, general and administrative expenses for the fiscal year 2026 were $313,171, up from $300,173 in the previous year[26] Future Plans - Fiscal 2026 targets total sales growth of mid to high-single digits and adjusted EBITDA of $34 million to $38 million, more than doubling the previous year's performance[5] - The company plans to open approximately 25 new stores and remodel 50 stores in fiscal 2026, while closing 4 locations[12] - The company plans to update its definition of Adjusted EBITDA and Adjusted SG&A to include equity-based compensation starting in 2026[32] Inventory Management - Inventory decreased to $113,515 as of January 31, 2026, from $122,640 a year earlier[22] Store Operations - The company closed 3 stores in Q4 2025 and ended the year with 590 locations after opening 3 new stores and remodeling 62[11]