Citi Trends shares rose 3.3% [1] in pre-market trading Tuesday after the retailer reported first-quarter earnings that exceeded Wall Street expectations.
The results signal a potential recovery for the company as it implements a turnaround strategy focused on increasing store traffic and improving sales efficiency.
Total sales for the quarter climbed 14.4% to $230.9 million [2], while comparable sales increased by 13.9% [2]. The company reported adjusted EBITDA of $13.9 million [3], which represents a $7.5 million increase year-over-year [3]. This performance resulted in an adjusted EBITDA margin of 6% [3].
Operational costs for the period included adjusted SG&A expenses of $78.3 million [3]. The growth in revenue and traffic drove the company to reaffirm its financial outlook for the fiscal year.
For the full year 2026, Citi Trends expects comparable sales growth between eight% and 10% [3]. The company also provided guidance for adjusted EBITDA between $35 million and $40 million [3]. To support this growth, the retailer plans to open approximately 25 new stores [3].
Citi Trends is listed on the NASDAQ exchange under the ticker CTRN [1]. The company's recent gains reflect investor confidence in the current trajectory of its retail operations and expansion plans.
“Total sales for the quarter climbed 14.4% to $230.9 million”
The strong first-quarter performance and reaffirmed guidance suggest that Citi Trends is successfully stabilizing its core operations. By combining aggressive comparable sales growth with a modest expansion of 25 new stores, the company is attempting to scale its turnaround without overextending its capital expenditures.
