Citi Trends EPS Surges to $1.06 with 14.4% Revenue Growth, Raises Outlook
CTRN•Citi Trends reported Q1 EPS of $1.06 versus a $0.32 forecast, delivering $7.80 million net income on $230.9 million revenue, up 14.4%. Management raised full-year comparable store sales growth guidance from 5%-7% to 8%-10%, driven by a 13.9% comp sales increase.
1. Quarterly Earnings Beat
Citi Trends delivered Q1 net income of $7.8 million, or $1.06 per share, outperforming the $0.32 estimate on $230.9 million revenue, surpassing the $217.4 million projection.
2. Strong Comparable Store Sales
Comparable store sales rose 13.9%, driven by higher customer traffic and larger average basket sizes across merchandise tiers, marking the 21st consecutive month of comp growth.
3. Margin Expansion and Leverage
Gross margin expanded by 40 basis points aided by improved merchandise margins and AI-driven inventory allocation, while SG&A leverage improved by 250 basis points on scaled sales.
4. Raised Fiscal 2026 Outlook
Management raised full-year comparable store sales growth guidance to 8%-10%, up from 5%-7%, and reaffirmed adjusted EBITDA targets, reflecting confidence in sustained operational momentum.
