Citi Trends Inc. (NASDAQ:CTRN) posted fourth-quarter results that topped analyst expectations and issued a fiscal 2026 outlook pointing to a sharp increase in profitability, sending its shares up about 15%.
The off-price retailer reported adjusted earnings of $0.88 per share for the quarter, significantly exceeding the analyst consensus of $0.47 by $0.41. Revenue came in at $230.4 million, above the expected $227.4 million and up 9.1% from $211.2 million in the same quarter a year earlier. Comparable store sales rose 8.9%, marking the company’s sixth straight quarter of positive comparable growth.
Looking ahead to fiscal 2026, Citi Trends expects adjusted EBITDA to reach between $34 million and $38 million. The midpoint of that range, $36 million, represents more than double the $11.8 million reported in fiscal 2025. The company forecasts total sales growth of 6% to 8%, with comparable store sales projected to increase between 5% and 7%. Gross margin is expected to improve by roughly 100 basis points, while adjusted SG&A is projected to leverage between 70 and 100 basis points.
“Our fourth quarter results cap a transformational year for CITITRENDS,” said Chief Executive Officer Ken Seipel. “We delivered 8.9% comparable store sales growth in Q4, or 15.3% on a two-year basis, marking our sixth consecutive quarter of positive comps.”
For the full fiscal year 2025, Citi Trends reported total sales of $820.0 million, up 8.9% year over year, with comparable store sales increasing 9.7%. The company posted net income of $5.2 million, which included an $11.0 million gain from the sale of its Savannah office building, compared with a net loss of $43.2 million in fiscal 2024. Gross margin improved by 210 basis points to 39.6%.
At the end of the quarter, the company held $66.1 million in cash and carried no debt, with no borrowings drawn under its $75 million credit facility. Citi Trends also plans to open about 25 new stores and remodel 50 locations during fiscal 2026.