Citi Trends Q2 sales rise, lifts 2026 outlook

Citi Trends said comparable store sales growth was driven by increases in average basket and transaction count.

Gross margin rose due to improved merchandise margin and investments to reduce shrink, partially offset by higher freight costs. The company said improved profitability was also attributed to expense control and sales flow-through to profit.

The company raised its fiscal 2026 outlook for sales and profitability.

• Comparable store sales growth outlook increased to 9%–11% from 8%–10%.
• Total sales growth outlook increased to 10%–12% from 9%–11%.
• Adjusted EBITDA outlook increased to $38 million–$42 million from $35 million–$40 million.

The current average analyst rating on the shares is "buy", with 2 "strong buy" or "buy" recommendations, no "hold" and no "sell" or . The average consensus recommendation for the apparel and accessories retailers peer group is .