Citi Trends, Inc. (NASDAQ: CTRN) Q1 2025 Earnings Call | 6/3/2025

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Citi Trends, Inc. (NASDAQ: CTRN) reported a standout Q1 2025 on June 3, 2025, with total sales rising 8.3% year-over-year to $201.7 million and comparable store sales surging 9.9%—the company’s best comp performance in years. Gross margin expanded by 90 basis points to 39.6%, driven by higher initial markups, lower shrink, and reduced freight costs, offset slightly by planned markdowns. Net income swung to $0.9 million (adjusted net income of $1.4 million), compared to a net loss of $3.4 million in Q1 2024, while adjusted EBITDA jumped to $5.4 million from a loss of $0.8 million last year. Diluted earnings per share were $0.11, or $0.17 as adjusted, versus a loss of $0.42 per share a year ago. The company remodeled 19 stores and ended the quarter with 591 locations, while inventory dropped 7.6% year-over-year, reflecting a 45% reduction in aged products and improved inventory turns. Citi Trends ended Q1 with $41.6 million in cash, no debt, and $117 million in total liquidity. Management raised its full-year outlook, now expecting mid-single-digit comparable store sales growth (at the high end of prior guidance), a 200 basis point gross margin improvement, and full-year EBITDA of $6–10 million—up to $24 million better than 2024. The company plans to open up to 5 new stores, remodel 50, and close up to 5 in 2025. CEO Ken Seipel highlighted broad-based retail strength across all regions and categories, continued market share gains, and disciplined cost management, while noting ongoing vigilance regarding tariffs and macroeconomic uncertainty. About Inside Ticker: For more expert analysis and real-time updates on Citi Trends, Inc. (NASDAQ: CTRN) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #CitiTrends #CTRN #EarningsCall #Q12025 #RetailStocks #OffPrice #StockMarket #Investing #InsideTicker