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Citi Trends (NASDAQ: CTRN) Q1 2026 sales up 14.4% with higher EBITDA outlook

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Citi Trends, Inc. reported significantly improved results for the first quarter of fiscal 2026, with total sales up 14.4% to $230.9 million and comparable store sales rising 13.9%, a 23.8% increase on a two-year basis.

Net income grew to $7.8 million, or $0.91 diluted earnings per share, compared with $0.11 a year earlier. Adjusted EBITDA more than doubled to $13.9 million, giving a 6.0% adjusted EBITDA margin versus 3.2% in 2025. The company reaffirmed its fiscal 2026 adjusted EBITDA outlook of $35 million to $40 million and highlighted a debt-free balance sheet, $81.1 million of cash, and plans to open 25 new stores during 2026.

Positive

  • Strong Q1 2026 profitability and margin expansion: Net income rose to $7.8 million and adjusted EBITDA more than doubled to $13.9 million, lifting adjusted EBITDA margin to 6.0% from 3.2% in the prior-year quarter.
  • Upgraded full-year earnings outlook: Management reaffirmed a 2026 adjusted EBITDA projection of $35 million to $40 million, characterized as more than doubling fiscal 2025 results while maintaining a debt-free balance sheet and $81.1 million of cash.

Negative

  • None.

Insights

Citi Trends delivered strong Q1 growth and raised-profit outlook.

Citi Trends showed robust operating momentum in Q1 2026. Sales rose 14.4% to $230.9M, driven by 13.9% comparable store sales growth, while net income increased to $7.8M. Adjusted EBITDA more than doubled to $13.9M, with margin expanding to 6.0%.

Management attributes performance to higher customer traffic, larger basket sizes, and merchandising and value initiatives. The company also emphasizes its debt-free position, $81.1M in cash, and an improved non-GAAP framework that now adds back equity-based compensation to better reflect cash profitability.

The reaffirmed 2026 adjusted EBITDA outlook of $35M–$40M, described as more than double fiscal 2025, along with plans to open 25 new stores in 33 states, signals continued growth ambitions. Future company filings and updates are expected to detail execution on store expansion, loyalty initiatives, and margin sustainability through fiscal 2026.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q1 2026 net sales $230.9M Total sales for first quarter 2026, up 14.4% year over year
Q1 2026 comparable store sales 13.9% Comparable store sales growth for first quarter 2026; two-year stack 23.8%
Q1 2026 net income $7.8M Net income for first quarter 2026 vs. $0.9M in 2025
Q1 2026 adjusted EBITDA $13.9M Adjusted EBITDA for first quarter 2026 vs. $6.4M in 2025
Q1 2026 adjusted EBITDA margin 6.0% Adjusted EBITDA margin for first quarter 2026 vs. 3.2% in 2025
2026 adjusted EBITDA outlook $35M–$40M Company’s projected adjusted EBITDA for fiscal 2026 vs. fiscal 2025
Cash and cash equivalents $81.1M Cash balance as of May 2, 2026
Store count 591 stores Number of stores operated in 33 states
comparable store sales financial
"Comparable store sales growth of 13.9%; Two-year stack of 23.8%"
Comparable store sales measure the change in revenue generated by stores that have been open for a certain period, typically at least one year. It helps assess how well a business is growing by showing whether existing stores are attracting more customers and sales, rather than just counting new store openings. Investors use this figure to gauge the true health and performance of a company's core operations over time.
adjusted EBITDA financial
"Q1 2026 adjusted EBITDA* of $13.9 million, more than double Q1 2025 results"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
non-GAAP financial measures financial
"The Company uses certain financial measures, including adjusted SG&A, adjusted net income (loss), adjusted EBITDA, and adjusted EBITDA margin"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
equity-based compensation financial
"Beginning in 2026 the Company updated its definition of Adjusted Net Income, Adjusted EBITDA and Adjusted SG&A to include an addback of equity-based compensation expense"
Equity-based compensation is pay given to employees or contractors in the form of company ownership—such as stock, stock options, or restricted shares—instead of or in addition to cash. It matters to investors because it aligns workers’ interests with shareholders (like giving employees a slice of the company pie), but can also dilute existing owners and appears as a real cost on financial statements, affecting earnings and share value.
adjusted EBITDA margin financial
"Adjusted EBITDA margin 6.0 % 3.2 %"
Adjusted EBITDA margin shows how much profit a company makes from its core operations, expressed as a percentage of its total revenue, after removing certain one-time or unusual expenses and income. It helps investors understand the company's true earning ability from regular business activities, making it easier to compare performance over time or with other companies. Think of it as measuring the efficiency of a business in turning sales into profits, excluding irregular adjustments.
leadership succession other
"Leadership succession 6 136 —"
Revenue $230.9M +14.4% YoY
Net income $7.8M vs. $0.9M prior-year quarter
Adjusted EBITDA $13.9M more than double prior-year $6.4M
Adjusted EBITDA margin 6.0% vs. 3.2% prior-year quarter
Guidance

Fiscal 2026 adjusted EBITDA outlook of $35 million to $40 million, described as more than doubling fiscal 2025 results.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): June 2, 2026

 

Citi Trends, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware   000-41886   52-2150697
(State or other jurisdiction of incorporation)   (Commission File Number)   (IRS Employer Identification No.)

 

17 Park of Commerce Boulevard, Suite 200, Savannah, Georgia   31405
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (912) 236-1561

 

Former name or former address, if changed since last report: Not applicable

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2 below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
¨ Pre- commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common stock, $0.01 par value CTRN Nasdaq Stock Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company  ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

 

 

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On June 2, 2026, the Company issued a press release reporting its financial results for the first quarter ended May 2, 2026 (the “Press Release”). A copy of the Press Release is attached to this Current Report on Form 8-K (the “Current Report”) as Exhibit 99.1, the contents of which are incorporated herein solely for purposes of this Item 2.02 disclosure by this reference.

 

The information contained in this Item 2.02, including the Press Release attached to this Current Report, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section. The information in this Item 2.02, including the Press Release, shall not be incorporated by reference into any filings under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.   Description
     
99.1   Press Release dated June 2, 2026.
     
104   Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  CITI TRENDS, INC.
   

Date: June 2, 2026

 By: /s/ Heather Plutino
  Name: Heather Plutino
  Title: Chief Financial Officer

 

 

 

Exhibit 99.1

 

CITITRENDS ANNOUNCES FIRST QUARTER FISCAL 2026 RESULTS

 

Q1 2026 total sales increased 14.4% to $230.9 million

 

Comparable store sales growth of 13.9%; Two-year stack of 23.8%

 

Q1 2026 Net Income of $7.8 million; Q1 2026 adjusted EBITDA* of $13.9 million, more than double Q1 2025 results

 

Company reaffirms increased 2026 adjusted EBITDA* outlook, more than doubling Fiscal 2025 results

 

SAVANNAH, GA (June 2, 2026) — Citi Trends, Inc. (NASDAQ: CTRN), a leading off-price value retailer of apparel, accessories and home trends primarily for Black families in the United States, today reported results for the first quarter ended May 2, 2026. For purposes of comparison, unless otherwise stated, metrics in this release are compared to the 13-week quarter ended May 3, 2025.

 

Chief Executive Officer Comments

 

Ken Seipel, Chief Executive Officer, said: “We delivered an exceptional start to 2026, building on the momentum established last year. Comparable store sales increased 13.9%, an increase of 23.8% on a two-year basis. We delivered $7.8 million of Net Income and adjusted EBITDA* more than doubled to $13.9 million, with performance accelerated across all merchandise categories and geographies. Most importantly, our growth was driven by increased customer traffic and larger basket size, reinforcing that our customers are responding to our improved assortment, trend-right product, and compelling value. We are also encouraged by the momentum we are seeing early in the second quarter, with quarter-to-date comparable store sales growth trending in the high-single digits, upper teens on a two-year basis, which further validates that our strategy is working to drive sustainable trends in our financial performance.”

Seipel continued, “As we move through 2026, we remain focused on three priorities: consistent execution, strong sales flow-through to profit and accelerated growth. We are strengthening our product offering, expanding our off-price and extreme value opportunities, improving operational efficiency, and deepening customer engagement through initiatives like our upcoming Insiders Club loyalty platform. We are leveraging our refined, data-driven site selection process to open 25 new stores this year, with a mix of existing and new markets. With a debt-free balance sheet, improving profitability, and strong customer momentum, we believe CITITRENDS is well positioned for sustained profitable growth and long-term shareholder value creation, giving us confidence in our increased adjusted EBITDA* projection of $35 million to $40 million this year.”

 

Financial Highlights – First Quarter 2026

 

·Total sales of $230.9 million increased $29.1 million, or 14.4% vs. Q1 2025; comparable store sales increased 13.9% compared to Q1 2025 driven by increases in both traffic and basket

 

·Gross margin of 40.0% increased 40 basis points compared to Q1 2025 due to increased merchandise margin offset by higher freight expense from increased fuel surcharges

 

·SG&A expense of $79.7 million, $78.3 million as adjusted*; on a rate basis, adjusted SG&A* was 33.9% of sales, leveraging 250 basis points vs last year, driven by leverage of fixed costs with higher sales

 

·Net income of $7.8 million, $9.2 million as adjusted*, vs. net income of $0.9 million, or adjusted net income* of $2.4 million in Q1 2025

 

·Adjusted EBITDA* of $13.9 million compared to adjusted EBITDA* of $6.4 million in Q1 2025

 

·Real Estate: Opened 2 stores, closed 1 store and remodeled 25 stores in the quarter

 

·Cash of $81.1 million at quarter-end, with no debt and no borrowings under a $75 million credit facility

 

·Merchandise inventory was $115.2 million at the end of the quarter, an increase of 4.8% vs. Q1 2025

 

 

 

  

Fiscal 2026 Outlook

 

The Company’s outlook for fiscal 2026 compared to fiscal 2025 is as follows:

 

·Expecting comparable store sales growth in the range of 8% to 10%, implying balance-of-year comps in the high single-digits. Total sales growth is expected to be 9% to 11% for the year.

 

·Gross margin is expected to expand approximately 50 to 70 basis points, lower than previous outlook due to expected continued headwinds from fuel surcharges

 

·Adjusted SG&A* is expected to leverage approximately 130 to 160 basis points, higher than previous outlook of 70 to 100 basis points, due to the impact of higher sales on the fixed cost structure and ongoing disciplined expense control

 

·Adjusted EBITDA* is expected to be in the range of $35 million to $40 million. Adjusted EBITDA margin* expansion is expected to be approximately 200 basis points

 

·For the year, the Company’s real estate plans remain unchanged with plans to open approximately 25 new stores, remodel approximately 50 stores, and close 4 stores

 

·Capital expenditures are expected to be in the range of $35 million to $40 million, consistent with previous outlook, with the majority of the spend on new stores and remodels

 

Investor Conference Call and Webcast

 

CITITRENDS will host a conference call today at 9:00 a.m. ET. The live broadcast of CITITRENDS’ conference call will be available online at the Company’s Investor Relations website, www.ir.cititrends.com, beginning today at 9:00 a.m. ET. The online replay will follow shortly after the call and will be available for replay for one year.

 

The live conference call can also be accessed by dialing (877) 407-0779. A replay of the conference call will be available until June 9, 2026, by dialing (844) 512-2921 and entering the passcode,13760258.

 

During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company’s responses to questions, as well as other matters discussed during the call, may contain or constitute information that has not been disclosed previously.

 

*Non-GAAP Financial Measures

 

The historical non-GAAP financial measures discussed herein are reconciled to their corresponding GAAP measures at the end of this press release. The Company is unable to provide a full reconciliation of the forward-looking non-GAAP financial measures above without unreasonable effort because it is not possible to predict certain of the adjustment items with a reasonable degree of certainty. This information is dependent upon future events and may be outside of the Company’ control and its unavailability could have a significant impact on its financial results.

 

About CITITRENDS

 

Citi Trends, Inc. is a leading off-price value retailer of apparel, accessories and home trends primarily for Black families in the United States. The Company operates 591 stores located in 33 states. For more information, visit cititrends.com or your local store.

 

 

 

 

Forward-Looking Statements

 

All statements other than historical facts contained in this news release, including statements regarding the Company’s future financial results and position, business policy and plans, objectives and expectations of management for future operations and capital allocation expectations, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 that are subject to material risks and uncertainties. The words “believe,” “may,” “could,” “plans,” “estimate,” “expects,” “continue,” “anticipate,” “intend,” “expect,” “upcoming,” “trend,” “guidance,” “outlook” and similar expressions, as they relate to the Company, are intended to identify forward-looking statements, although not all forward-looking statements contain such language. Statements with respect to earnings, sales or new store guidance, including under the section “Fiscal Year 2026 Outlook” and our ability to deliver on such financial outlook are forward-looking statements. Investors are cautioned that any such forward-looking statements are subject to the finalization of the Company’s quarter-end financial and accounting procedures, are not guarantees of future performance or results, and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Actual results or developments may differ materially from those included in the forward-looking statements as a result of various factors which are discussed in our Annual Reports and Quarterly Reports on Forms 10-K and 10-Q, respectively, and any amendments thereto, filed with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, uncertainties relating to general economic conditions, including inflation, energy and fuel costs, unemployment levels, and any deterioration whether caused by acts of war, terrorism, political or social unrest (including any resulting store closures, damage or loss of inventory) or other factors; changes in market interest rates and market levels of wages; the imposition of new taxes on imports, new tariffs and changes in existing tariff rates; the imposition of new trade restrictions and changes in existing trade restrictions or trade relationships; impacts of natural disasters such as hurricanes; uncertainty and economic impact of pandemics, epidemics or other public health emergencies; transportation and distribution delays or interruptions; changes in freight rates; the Company’s ability to attract and retain workers; the Company’s ability to negotiate effectively the cost and purchase of merchandise inventory risks due to shifts in market demand and to manage inventory shrinkage; the Company’s ability to gauge fashion trends and changing consumer preferences; consumer confidence and changes in consumer spending patterns; competition within the industry; competition in the Company’s markets; the duration and extent of any economic stimulus programs; changes in product mix; interruptions in suppliers’ businesses; risks related to cybersecurity, data privacy and intellectual property; temporary changes in demand due to weather patterns; seasonality of the Company’s business; the results of pending or threatened litigation; delays and costs associated with building, remodeling, assuming leases, opening and operating new stores; delays associated with building, and opening or expanding new or existing distribution centers; changes in regulator’s requirements or stakeholder’s expectations on environmental, social and sustainability related topics; challenges in effectively managing the use of artificial intelligence; and strategic transactions that could negative impact our liquidity, increase our expenses, or present significant distractions to management. Any forward-looking statements by the Company, with respect to guidance, the repurchase of shares pursuant to a share repurchase program, or otherwise, are intended to speak only as of the date such statements are made. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company does not undertake to publicly update any forward-looking statements in this news release or with respect to matters described herein, whether as a result of any new information, future events or otherwise.

 

Contact:

Tom Filandro

ICR, Inc.

CitiTrendsIR@icrinc.com

 

 

 

 

CITI TRENDS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

 

   First Quarter 
   2026   2025   2024 
Net sales  $230,858   $201,728   $186,289 
                
Cost of sales (exclusive of depreciation shown separately below)   (138,630)   (121,918)   (114,254)
Selling, general and administrative expenses   (79,745)   (74,887)   (74,211)
Depreciation   (5,108)   (4,370)   (4,793)
Asset impairment   -    (64)   - 
Income (loss) from operations   7,375    489    (6,969)
Interest income   647    458    849 
Interest expense   (86)   (76)   (79)
Income (loss) before income taxes   7,936    871    (6,199)
Income tax expense   (182)   -    2,773 
Net income (loss)  $7,754   $871   $(3,426)
                
Basic net income (loss) per common share  $0.95   $0.11   $(0.42)
Diluted net income (loss) per common share  $0.91   $0.11   $(0.42)
                
Weighted average number of shares outstanding               
Basic   8,126    8,034    8,253 
Diluted   8,484    8,170    8,253 

 

 

 

 

CITI TRENDS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

 

   May 2, 2026   May 3, 2025 
Assets:          
Cash and cash equivalents  $81,100   $41,556 
Inventory   115,246    109,931 
Prepaid and other current assets   16,612    13,752 
Property and equipment, net   56,639    49,146 
Operating lease right of use assets   224,770    218,360 
Other noncurrent assets   1,824    4,416 
Total assets  $496,191   $437,408 
           
Liabilities and Stockholders' Equity:          
Accounts payable  $113,238   $80,919 
Current operating lease liabilities   44,046    24,053 
Accrued liabilities   27,646    44,592 
Other current liabilities   1,049    908 
Noncurrent operating lease liabilities   182,416    175,797 
Other noncurrent liabilities   2,453    2,580 
Total liabilities   370,848    328,849 
           
Total stockholders' equity   125,343    108,559 
Total liabilities and stockholders' equity  $496,191   $437,408 

 

 

 

 

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)

(in thousands, except per share data)

 

The Company uses certain financial measures, including adjusted SG&A, adjusted net income (loss), adjusted EBITDA, and adjusted EBITDA margin to understand and evaluate the Company’s current operating performance and to allow for period-to-period comparisons. The Company believes these non-GAAP financial measures provide meaningful supplemental information about our financial results to investors. These non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies and should be considered in addition to and not as a substitute for, or superior to, any measure of performance, cash flow or liquidity prepared in accordance with GAAP. These Non-GAAP measures have no standardized meanings and are not defined by GAAP. The Company is providing a reconciliation of each of these non-GAAP financial measures to their most comparable financial measures on a GAAP basis.

 

Beginning in 2026 the Company updated its definition of Adjusted Net Income, Adjusted EBITDA and Adjusted SG&A to include an addback of equity-based compensation expense. Equity-based compensation is a non-cash expense that the Company does not use to assess core profitability and the Company believes excluding equity-based compensation will improve comparability and provide greater transparency of cash generated from operations. Prior period information presented has been adjusted to reflect this change.

  

    First Quarter 
    May 2, 2026    May 3, 2025 
Reconciliation of Adjusted SG&A          
SG&A  $(79,745)  $(74,887)
Equity based compensation   1,303    968 
Leadership succession6   136    — 
Lease termination fee5   —    390 
Severance1   —    320 
Shareholder matters4    —    175 
Cyber incident expenses3   —    (402)
Adjusted SG&A  $(78,306)  $(73,436)

 

    First Quarter 
    May 2, 2026    May 3, 2025 
Reconciliation of Adjusted Net Income          
Net income  $7,754   $871 
Asset impairment   —    64 
Equity based compensation   1,303    968 
Leadership succession6   136    — 
Lease termination fee5   —    390 
Severance1   —    320 
Shareholder matters4    —    175 
Cyber incident expenses3   —    (402)
Tax effect   (33)   — 
Adjusted net income (loss)  $9,160   $2,386 

 

 

 

 

    First Quarter 
    May 2, 2026    May 3, 2025 
Reconciliation of Adjusted EBITDA          
Net income (loss)  $7,754   $871 
Interest income   (647)   (458)
Interest expense   86    76 
Income tax expense   182    — 
Depreciation   5,108    4,370 
Asset impairment   —    64 
Equity based compensation   1,303    968 
Leadership succession6   136    — 
Lease termination fee5   —    390 
Severance1   —    320 
Shareholder matters4    —    175 
Cyber incident expenses3   —    (402)
Adjusted EBITDA  $13,922   $6,374 

 

    First Quarter 
    May 2, 2026    May 3, 2025 
Adjusted EBITDA Margin          
Sales  $230,858   $201,728 
Adjusted EBITDA   13,922    6,374 
Adjusted EBITDA margin   6.0%   3.2%

 

1 Represents severance and related costs resulting from the CEO transition and subsequent implementation of CEO-led organizational changes.

2 Represents costs associated with the hiring of a new CEO.

3 Represents costs associated with the cyber disruption of the Company's back office and distribution center IT systems in January 2023.

4 Represents costs related to requests and inquiries from a significant shareholder.

5 Represents a lease termination fee associated with the closure of a store.

6 Represents executive search costs incurred related to succession planning for our key leadership roles.

 

 

Source: View Original Filing on SEC EDGAR

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