Citi Trends Turns To Profit In Q1 On Comps Growth, Lifts FY25 Outlook; Stock Climbs In Pre-market

(RTTNews) - Specialty value retailer Citi Trends, Inc. (CTRN) reported Tuesday a profit in its first quarter, compared to prior year's loss, benefited by higher sales and comparable store sales. Further, the firm lifted its fiscal 2025 outlook for EBITDA view and comparable store sales growth.

In the pre-market activity on the Nasdaq, Citi Trends shares were gaining around 13 percent to trade at $30.52.

Ken Seipel, Chief Executive Officer said, "The tide is rising on all fronts at Citi Trends with all retail metrics trending positively and growth in both apparel and non-apparel, in all climate zones, and in all store volumes. Our sales momentum has continued with Q2 '25 quarter-to-date comparable store sales growth trending in the mid to upper-single digits."

The company added that though in the early transformation stages, the positive trends reinforce confidence that the firm is a highly differentiated business model, giving a clear path to growing EBITDA to $40 million and beyond.

For fiscal 2025, the company now expects EBITDA to be in the range of $6 million to $10 million, above previous outlook, a $20 million to $24 million improvement from last year.

Gross margin rate is expected to increase approximately 200 basis points compared to 2024, slightly below previous outlook due to an elongated timeline for the repair phase of the supply chain transformation.

Further, the company now projects full-year comparable store sales growth of mid-single digits, at the high end of previous outlook of low to mid-single digit growth.

Citi Trends said it continues to plan to open up to 5 new stores, remodel approximately 50 stores and close up to 5 locations in the year.

In its first quarter, the company's net income was $0.87 million, compared to net loss of $3.43 million last year. Earnings per share were $0.11, compared to loss per share of $0.42 a year ago.

Adjusted net income was $1.4 million or $0.17 per share, compared to adjusted net loss of $2.7 million or $0.32 per share in the prior year.

The Wall Street analysts on average expected the company to report earnings of $5.80 per share on sales of $10.44 billion. Analysts' estimates typically exclude special items.

Adjusted EBITDA was $5.4 million, compared to an adjusted EBITDA loss of $0.8 million a year ago.

Total sales of $201.73 million, however, increased 8.3% from last year's $186.29 million.

Analysts expected sales of $10.44 billion. Analysts' estimates typically exclude special items.

Comparable store sales increased 9.9% compared to last year, fueled by increases in traffic, basket and conversion.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.