Should You Chase Citi Trends After Q3 Earnings?

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]