TCF POST Report
Savannah, Ga. — August 25, 2026- Citi Trends, Inc. (NASDAQ: CTRN), the Savannah-based off-price retailer known for serving Black families across the United States with apparel, accessories, and home goods, delivered another quarter of accelerating sales and improving profitability, prompting management to raise its guidance for the remainder of fiscal 2026.
Operating under the tagline “Styles That See You, Prices That Amaze You and Trends That Tell Your Story,” the 594-store chain — which spans 33 states — has built its identity around value-priced, trend-forward merchandise tailored to its core customer base. That positioning continues to pay off: the company just logged its eighth consecutive quarter of comparable-store sales growth.
The Numbers
For the second quarter ended August 1, 2026, total sales climbed 10.9% year-over-year to $211.6 million, driven by a 10.5% increase in comparable-store sales (19.7% on a two-year stacked basis). Gross margin expanded 60 basis points to 40.6%, helped by better merchandise margins and shrink-reduction efforts, though higher fuel-related freight costs offset some of that gain.
Profitability told a more mixed story on a headline basis. The company reported a net loss of $0.9 million for the quarter, compared with net income of $3.8 million a year earlier — but last year’s figure included an $11.0 million one-time gain from the sale of Citi Trends’ former Savannah office building. Strip out one-time items, and adjusted EBITDA swung to a $5.5 million gain, a $6.6 million improvement over the adjusted EBITDA loss posted in the prior-year quarter.
Year-to-date, the picture is stronger still: sales through the first half of fiscal 2026 rose 12.7% to $442.5 million, with comparable-store sales up 12.2% (21.8% on a two-year basis). Net income for the first half reached $6.8 million, and adjusted EBITDA hit $19.4 million — already surpassing the company’s full-year adjusted EBITDA for all of fiscal 2025. New store openings however trimmed to 20 for the year, down from a prior estimate of 25
Management Commentary
Chairman and CEO Ken Seipel credited the results to consistent execution and sales flow-through, pointing to continued momentum in the merchandising strategy, the rollout of a new “Insiders Club” customer loyalty platform, an expanding new-store pipeline, and a debt-free balance sheet as reasons for confidence in the company’s growth trajectory.
Balance Sheet and Store Footprint
Citi Trends ended the quarter with $55.9 million in cash, no debt, and no borrowings against its $75 million credit facility. Merchandise inventory rose 7.5% year-over-year to $126.4 million to support the sales momentum. During the quarter, the company opened four new stores and closed one, while completing 26 store remodels — bringing its year-to-date remodel total to 51.
