CitiTrends Announces Fourth Quarter and Fiscal 2025 Results

Core Insights - Citi Trends reported a strong performance in Q4 2025 with total sales of $230.4 million, reflecting an 8.9% growth in comparable store sales and a two-year stack of 15.3% [1][2] - For the full fiscal year 2025, total sales reached $820.0 million, with comparable store sales growth of 9.7% and a two-year stack of 13.1% [1][3] - The company anticipates a significant increase in adjusted EBITDA for fiscal 2026, projecting it to double compared to the previous year [1][4] Financial Highlights - Fourth Quarter 2025 - Merchandise inventory decreased by 7.4% year-over-year to $113.5 million, with average store inventory down 2.0% [5] - Cash at quarter-end was $66.1 million, with no debt and no borrowings under a $75 million credit facility [5] - The company closed 3 stores during the quarter [5] Financial Highlights - Full Year 2025 - Net income increased by $48.4 million to $5.2 million, with adjusted EBITDA rising by $26 million to $11.8 million [3][6] - Gross margin improved by over 200 basis points, and SG&A expenses were effectively managed [3] - Total sales for the year increased by $66.9 million, or 8.9%, compared to 2024 [8] Fiscal 2026 Outlook - The company aims for mid to high-single digit growth in total sales and continued margin expansion [4][15] - Adjusted EBITDA is expected to be in the range of $34 million to $38 million, representing a significant increase from fiscal 2025 [4][15] - Capital expenditures are projected to be between $35 million and $40 million, focusing on new store openings and remodels [15]