Citi Trends momentum continues; ramping up store expansion
Citi Trends ended the year on an upbeat note, with its sixth consecutive quarter of positive comparable store sales amid increased traffic and basket size.
The retailer, which specializes in value-priced apparel, home goods and accessories primarily for Black families, also was upbeat about its current quarter.
“This momentum has continued into 2026, with quarter-to-date comparable store sales trending in the high-single digits, supported by increased traffic and basket size during this important tax refund season,” Citi Trends CEO Ken Seipel said on the company’s earnings call.
The retailer said it plans to open approximately 25 new stores, remodel 50 locations and close four stores this year. Looking further out, it is targeting 40 openings in 2027.
Seipel told analysts that Citi Trends new store expansion is guided by a "disciplined" approach that combines analytics, market expertise and financial metrics.
"Using AI tools, we have analyzed three years of transaction data from every store combined with comprehensive geolocation studies to understand the specific customer and market characteristics that drive success," he said. "This data-driven approach has demonstrated approximately 90% accuracy in the sales prediction his is going to help us identify and replicate our most successful store profiles while minimizing risk as we expand our footprint."
Citi Trends net income totaled $7.4 million ($7.2 million adjusted) for the quarter ended Feb. 1, compared to a net loss of $14.2 million ($12.8 million adjusted net loss) in the year-ago period.
Total sales rose 9.1% to $230.4 million. Comparable store sales increased 8.9%, driven by increases in both traffic and basket.
For the full year, sales rose 8.9% to $820.0 million, and comparable store sales increased 9.7%, reflecting strong customer traffic and broad-based growth across stores, geographies, and merchandise categories, the company said.
“Fiscal 2025 was about strengthening the foundation of the business and building the operational infrastructure needed for sustained profitable growth,” Seipel said in the earnings release. “We believe these results validate the strategic actions we have taken to refocus the business on the Black customer — the center of everything we do, to sharpen our merchandise assortments, and to improve operational execution across the company.”
Looking ahead, the retailer expects sales growth of 6% to 8%, with comp growth of 5% to 7%.
Citi Trends operates 592 stores located in 33 states.
