Citi Trends, Inc. (NASDAQ: CTRN) reported second-quarter sales of $190.75 million, beating the analyst consensus estimate of $188.397 million, with a 9.2% increase in comparable store sales driven by various factors. The quarterly gross margin increased by 890 basis points to 40%, while the adjusted EBITDA loss decreased to $2.6 million. Citi Trends raised its fiscal 2025 outlook for sales growth, margin expansion, and EBITDA improvement.

The company remodeled 19 stores, closed one, and ended the quarter with 590 locations. Merchandise inventory decreased by 12.9% year-over-year, with average store inventory declining by 5.7%. Citi Trends finished the quarter with cash and equivalents worth $50.397 million, lower than the previous year. The company plans to open new stores, remodel existing ones, close some locations, and increase capital spending.

CTRN shares are trading higher by 2.50% at $34.88. Citi Trends is optimistic about its financial performance, expecting continued growth and improvement in various areas. The company’s strategic initiatives and operational changes have contributed to its recent success and positive momentum.

Read more at Yahoo Finance: Citi Trends Lifts Outlook As CEO Highlights Robust Back-To-School Sales Momentum