Citi Trends to open 25 stores, remodel 50; momentum continues in Q1
Citi Trends reported a strong first quarter as sales rose 14.4% amid increased customer demand.
The off-price value retailer of apparel, accessories and home trends primarily for Black families marked its 21st consecutive months of sales growth. Citi Trends plans to open 25 stores this year in a mix of existing and new markets, and remodel 50 locations. It’s preparing to accelerate expansion in 2027.
“Our early results from our newest stores are exceeding expectations giving us the confidence and accelerating to approximately 40 new stores in 2027,” CEO Ken Seipel said on the earnings call.
Citi Trends reported that its total sales increased 14.4% to $230.9 million for the quarter ended May 3. Comparable store sales increased 13.9%, driven by increases in both traffic and basket size as well as merchandising initiatives. The growth represented an increase of 23.8% on a two-year basis.
Net income totaled $7.8 million, with earnings per share of $0.91 $9.2 million, for the quarter ended May 3, compared to net income of $0.9 million, in the year-ago period. Adjusted EBITDA was $13.9 million, more than doubling from $6.4 million in the prior year.
“We delivered an exceptional start to 2026, building on the momentum established last year,” Seipel stated in the earnings release. “We are also encouraged by the momentum we are seeing early in the second quarter, with quarter-to-date comparable store sales growth trending in the high-single digits, upper teens on a two-year basis, which further validates that our strategy is working to drive sustainable trends in our financial performance.”
For the full year, Citi Trends expects comparable store sales to increase 8% to 10%, with total sales growing at a pace of between 9% to 11%.
“As we move through 2026, we remain focused on three priorities: consistent execution, strong sales flow-through to profit and accelerated growth,” Seipel stated. “We are strengthening our product offering, expanding our off-price and extreme value opportunities, improving operational efficiency, and deepening customer engagement through initiatives like our upcoming Insiders Club loyalty platform."
Citi Trends operates 591 stores located in 33 states.
