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Citi Trends (CTRN)
NASDAQ:CTRN
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Citi Trends
(NASDAQ:CTRN)
55Neutral
Citi Trends (CTRN) vs. S&P 500 (SPY)
Market Cap
$183.35M
Dividend YieldN/A
Average Volume (3M)106.92K
Price to Earnings (P/E)―
Beta (1Y)1.24
Revenue Growth2.00%
EPS Growth-182.86%
CountryUS
Employees4,800
SectorConsumer Cyclical
Sector Strength49
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)-3.06
Shares Outstanding8,710,024
10 Day Avg. Volume120,107
30 Day Avg. Volume106,919
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.24
Price to Cash Flow (P/CF)-2.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$29.00Price Target Upside37.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Citi Trends Business Overview & Revenue Model
Company DescriptionCiti Trends, Inc. engages in the retail of urban fashion apparel, shoes, accessories and home decor. It offers products under its Citi Steps and Red Ape brands. The company was founded in 1946 and is headquartered in Savannah, GA.
How the Company Makes MoneyCiti Trends makes money primarily through the sale of products in its retail stores. The company generates revenue by purchasing merchandise from suppliers at wholesale prices and selling it at competitive retail prices to customers. Key revenue streams include sales from apparel, accessories, and home products. Citi Trends strategically places its stores in underserved markets, allowing it to capitalize on demand for affordable fashion. The company also benefits from economies of scale and efficient supply chain management, which help maintain low operational costs and enhance profit margins. Additionally, Citi Trends occasionally engages in partnerships or collaborations to expand its product offerings and attract a broader customer base, further contributing to its revenue.
Citi Trends Financial Statement Overview
Summary
Citi Trends is facing financial headwinds, with declining revenues and profitability impacting its financial health. High leverage and poor cash flow management pose additional challenges. The company needs to focus on improving sales performance and operational efficiency to stabilize its financial position.Income Statement
Citi Trends has shown a significant decline in profitability, with the TTM (Trailing-Twelve-Months) data indicating negative EBIT and net income. The gross profit margin also decreased from 39.92% last year to 35.39% in the TTM. Revenue has been declining, with a negative growth trend observed over the past few periods, reflecting challenges in maintaining sales momentum.35
Negative
Balance Sheet
The balance sheet shows a high debt-to-equity ratio of 1.73 in the TTM, indicating significant leverage. Stockholders' equity has decreased, leading to a drop in the equity ratio to 27.89%. This poses a risk to financial stability, although the company maintains a moderate level of cash and short-term investments.45
Neutral
Cash Flow
Cash flow from operations is negative in the TTM, and free cash flow turned negative, reflecting operational challenges. The operating cash flow to net income ratio is not favorable, indicating poor cash generation relative to net earnings. However, the company has managed its capital expenditures prudently.40
Negative
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 757.09M | 747.94M | 795.01M | 991.60M | 783.29M | 781.92M | Gross Profit |
| 267.95M | 285.12M | 310.99M | 407.53M | 311.68M | 297.19M | EBIT |
| -35.88M | -19.45M | 12.25M | 79.52M | 31.93M | 18.55M | EBITDA |
| -14.72M | 3.41M | 148.24M | 150.40M | 99.67M | 83.97M | Net Income Common Stockholders |
| -25.44M | -11.98M | 58.89M | 62.24M | 23.98M | 16.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 38.87M | 79.71M | 103.50M | 49.79M | 123.18M | 47.48M | Total Assets |
| 467.08M | 518.72M | 544.26M | 474.02M | 494.59M | 459.14M | Total Debt |
| 225.16M | 234.65M | 267.60M | 216.11M | 192.81M | 178.26M | Net Debt |
| 186.28M | 154.95M | 164.10M | 166.32M | 69.63M | 158.34M | Total Liabilities |
| 336.81M | 361.01M | 377.81M | 357.88M | 330.96M | 288.10M | Stockholders Equity |
| 130.27M | 157.71M | 166.44M | 116.14M | 163.63M | 171.04M |
| Cash Flow | Free Cash Flow | ||||
| -19.97M | -24.45M | -16.53M | 44.61M | 93.90M | 18.43M | Operating Cash Flow |
| -9.06M | -9.58M | 5.75M | 74.32M | 110.86M | 42.61M | Investing Cash Flow |
| -10.91M | -13.36M | 60.18M | -29.52M | 26.70M | -7.61M | Financing Cash Flow |
| -883.00K | -854.00K | -12.23M | -118.19M | -34.30M | -32.94M |
Citi Trends Technical Analysis
Negative
21.05
Price Trends
24.92
Negative
23.50
Negative
21.01
Positive
Market Momentum
-1.29
Positive
41.21
Neutral
20.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTRN, the sentiment is Negative. The current price of 21.05 is below the 20-day moving average (MA) of 22.65, below the 50-day MA of 24.92, and above the 200-day MA of 21.01, indicating a neutral trend. The MACD of -1.29 indicates Positive momentum. The RSI at 41.21 is Neutral, neither overbought nor oversold. The STOCH value of 20.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTRN.
Citi Trends Risk Analysis
Citi Trends disclosed 28 risk factors in its most recent earnings report. Citi Trends reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Citi Trends Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.53B | 11.51 | 17.56% | ― | 7.71% | 40.01% | |
78 Outperform | $130.54B | 27.26 | 61.98% | 1.29% | 3.95% | ― | |
72 Outperform | $40.76B | 19.55 | 40.28% | 1.19% | 3.69% | 13.71% | |
70 Outperform | $14.79B | 30.02 | 42.55% | ― | 9.33% | 50.05% | |
59 Neutral | $12.35B | 11.02 | 1.38% | 3.72% | 1.28% | -20.23% | |
55 Neutral | $183.35M | ― | -17.96% | ― | 2.00% | -182.86% | |
41 Neutral | $73.52M | ― | -22.43% | ― | -1.85% | -268.97% |
* Consumer Cyclical Sector Average
Performance Comparison
CTRN
Citi Trends
21.05
-5.81
-21.63%
ROST
Ross Stores
123.54
-19.53
-13.65%
TJX
TJX Companies
116.12
19.24
19.86%
URBN
Urban Outfitters
49.13
7.03
16.70%
BURL
Burlington Stores
233.96
6.35
2.79%
DLTH
Duluth Holdings
2.09
-2.72
-56.55%
Citi Trends Earnings Call Summary
Earnings Call Date: Mar 18, 2025 | % Change Since: -2.27% | Next Earnings Date: May 27, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with significant improvements in sales, margins, and inventory efficiency. The company is in a strong financial position and anticipates positive free cash flow, supported by strategic initiatives and a share repurchase program. However, challenges remain in specific product categories and operational execution, indicating areas for continued focus.Highlights
Comparable Store Sales Growth
Fourth quarter comparable store sales grew by 6.4%, showing sequential improvement from the third quarter and strong acceleration on a two-year basis.
Gross Margin Expansion
The company delivered a gross margin rate of 39.7%, a 60-basis-point expansion compared to Q4 2023.
Inventory Efficiency
Inventories were down 6% compared to the prior year, with a focus on liquidating aged inventory quickly and maintaining fresher inventory.
Strong Financial Position
Citi Trends maintains a healthy balance sheet with $61 million in cash, no debt, and no drawings on a $75 million revolver.
Positive Free Cash Flow Anticipation
The company anticipates generating positive free cash flow for the first time in recent history in fiscal 2025.
Share Repurchase Program
Since mid-December, Citi Trends invested $10 million in share repurchases, resuming a $50 million share repurchase program.
Expansion Strategy
Planning to remodel at least 50 stores in 2025 and conducting market studies for new store expansion.
Lowlights
Plus-Size Apparel Miss
Significant miss in plus-size apparel, driven by internally-controlled execution issues, with expectations for improvement by Q2 2025.
Valuation Allowance on Deferred Tax Assets
A non-cash valuation allowance of approximately $15.5 million was recorded, affecting tax expense.
Weather Disruption Impact
Weather disruptions in January had a 250-basis-point headwind to comparable store sales for the month.
Need for Operational Improvements
The company is still in the early stages of operational improvements, with significant opportunities ahead.
Company Guidance
During the fourth quarter of fiscal year 2024, Citi Trends reported a comparable store sales growth of 6.4%, driven by strong customer traffic and an increase in basket size. The company achieved total sales of approximately $211 million and a gross margin rate of 39.7%, marking a 60-basis-point expansion compared to the previous year. Inventory levels improved, ending the period with inventories down 6% year-over-year. Citi Trends also noted a high-single-digit growth in its footwear business and has identified key product intensification areas for 2025, including big men's, women's plus size, family footwear, consumables, and extreme value off-price deals. The company closed the fiscal year with $61 million in cash and no debt, and it anticipates low- to mid-single-digit comp sales growth for 2025, with plans to remodel at least 50 stores and open up to five new locations.Citi Trends Corporate Events
Business Operations and StrategyFinancial Disclosures
Citi Trends Reports Strong Holiday Sales Performance
Positive
Jan 13, 2025
Citi Trends announced strong holiday sales results for the period ending January 4, 2025, with total sales reaching $174.4 million, which is at the high end of expectations. The company reported a 7.1% increase in comparable store sales, driven by enhanced product offerings and improved operational processes. As a result, Citi Trends expects its sales and EBITDA for the second half of fiscal 2024 to be at the high end of their previously provided outlook. The company reaffirmed its fiscal guidance and highlighted the success of its team-based execution strategy, indicating a strong belief in its potential to deliver improved financial results.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.