Citi Trends, Inc. (NASDAQ:CTRN) posted third-quarter results on Tuesday that topped Wall Street revenue forecasts and prompted the company to raise its full-year guidance, even as losses came in wider than analysts had projected.
Shares climbed 6.44% in premarket trading following the announcement.
The off-price retailer — which focuses on serving African American households — reported $197.1 million in Q3 revenue, well above the $187.33 million consensus estimate. Comparable-store sales grew 10.8% year over year, marking the fifth straight quarter of positive comps.
However, the company recorded a loss of –$0.86 per share, missing analyst expectations of –$0.79.
CEO Ken Seipel highlighted the company’s operational improvements and momentum across its store base.
“I am pleased to report another quarter of strong results, reflecting disciplined execution and meaningful progress with our strategic transformation,” Seipel said.
“We’re experiencing broad-based momentum at Citi Trends, with sales growth spanning all store volume groups, geographies, and product categories, highlighting the comprehensive nature of our business improvement.”
The retailer saw a robust back-to-school season, driven by strength in its Children’s, Men’s, and Basic apparel categories. Total revenue rose 10.1% year over year, while gross margin came in at 38.9%, down 90 basis points from Q3 2024.
In light of its performance, Citi Trends raised its fiscal 2025 outlook. The company now expects full-year comparable-store sales to grow in the high-single digits, and sees EBITDA landing between $10 million and $12 million, above prior guidance — an improvement of $24 million to $26 million compared with 2024.
Citi Trends closed the quarter with $51.1 million in cash, no outstanding debt, and no borrowings against its $75 million credit facility. Inventory levels declined 3.1% from the prior year.