Citi Trends Q2 sales rise, lifts 2026 outlook
Citi Trends Q2 sales rise, lifts 2026 outlook
Overview
U.S. off-price apparel retailer's fiscal Q2 sales grew 10.9% yr/yr, comparable store sales up 10.5%
Adjusted EBITDA for Q2 improved to $5.5 mln from a loss in prior year
Company raised fiscal 2026 outlook for sales and profitability
Outlook
Citi Trends raises fiscal 2026 comparable store sales growth outlook to 9%-11% from 8%-10%
Company expects fiscal 2026 total sales growth of 10%-12%, up from prior 9%-11% outlook
Citi Trends sees fiscal 2026 adjusted EBITDA of $38 mln-$42 mln, above previous $35 mln-$40 mln range
Result Drivers
HIGHER BASKET AND TRANSACTIONS - Q2 comparable store sales growth driven by increases in average basket and transaction count
MERCHANDISE MARGIN AND SHRINK REDUCTION - Gross margin rose due to improved merchandise margin and investments to reduce shrink, partially offset by higher freight costs
SG&A LEVERAGE - Improved profitability attributed to expense control and sales flow-through to profit
Company press release: ID:nBw5PFBb2a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $211.60 mln | $214.99 mln (2 Analysts) |
Q2 Loss Per Share |
| $0.11 |
|
Q2 Comparable Sales Growth |
| 10.50% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy"
Wall Street's median 12-month price target for Citi Trends Inc is $73.00, about 1.8% below its August 24 closing price of $74.35
The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 36 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)