Citi Trends shares surge over 4% as Q4 revenue tops estimates

Published 18/03/2025, 12:06
Citi Trends shares surge over 4% as Q4 revenue tops estimates

SAVANNAH, Ga. -On Tuesday, Citi Trends Inc. (NASDAQ:CTRN) the off-price retailer reported fourth-quarter revenue that beat analyst expectations, despite posting a wider-than-expected loss.

The company’s shares jumped 4.50% in premarket trading following the release.

The company reported Q4 revenue of $211.17 million, surpassing the consensus estimate of $209.19 million. However, Citi Trends posted a loss per share of $1.71, which was $1.89 worse than analysts’ expectations for earnings of $0.18 per share.

Comparable store sales increased 6.4% in Q4 compared to the same period last year, driven by increases in traffic, basket size and conversion. The company said this reflects improved product value, addition of off-price extreme value items, and better allocation methods.

Gross margin expanded 60 basis points YoY to 39.7% in Q4, benefiting from lower freight costs that were partially offset by planned markdowns.

For fiscal 2025, Citi Trends expects low to mid-single digit comparable store sales growth and significant EBITDA improvement. The company plans to open up to 5 new stores and remodel approximately 50 locations.

Citi Trends ended fiscal 2024 with $61.1 million in cash and no debt. The company repurchased 145,238 shares for $3.8 million in Q4.

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