From Yahoo Finance: 2025-06-03 10:36:00

Citi Trends, Inc. (NASDAQ: CTRN) saw a stock increase after reporting first-quarter earnings. Quarterly sales grew 8.3% to $201.7 million, beating estimates. Comparable store sales rose by 9.9%, driven by improved product style, value, and better product allocation methods. Adjusted EPS of 17 cents surpassed the consensus loss estimate of 92 cents.

Gross margin expanded to 39.6%, with merchandise inventory down 7.6% YoY. Adjusted EBITDA was $5.4 million, compared to a loss last year. CEO Ken Seipel praised strong Q1 results and positive sales momentum into Q2. The company expects mid-single digits comparable store sales growth and adjusted EBITDA of $6M-$10M.

Citi Trends plans to open up to 5 new stores, remodel around 50, and close up to 5 locations. Stock price surged by 13.1% to $30.55. CEO Seipel highlighted the company’s ability to manage net product costs and remain flexible in the face of economic uncertainties.

Read more: Citi Trends CEO Asserts It Will Tackle Tariffs with ‘Aggressive Growth,’ Responsive Adjustments