Citi Trends Raises FY26 Adjusted EBITDA Outlook to $34–38M After Q4 Turnaround
Q4 sales rose 9.1% to $230.4 million with 8.9% comparable store growth (15.3% two-year), producing $7.4 million net income and $11.9 million adjusted EBITDA versus prior-year losses. FY25 revenue climbed 8.9% to $820 million with 9.7% comps, 210 bps margin expansion and a projected $34–38 million adjusted EBITDA in FY26.
1. Q4 Financial Performance
In the fourth quarter, total sales reached $230.4 million, a 9.1% increase driven by an 8.9% comparable store sales rise. Gross margin improved to 39.9%, up 20 basis points, while net income turned positive at $7.4 million and adjusted EBITDA climbed to $11.9 million from $7.1 million year-over-year.
2. Full-Year 2025 Results
Fiscal 2025 revenue totaled $820.0 million, up 8.9%, with comparable store sales up 9.7% (13.1% two-year). Gross margin expanded by 210 basis points to 39.6% and adjusted SG&A leverage improved by 120 basis points, resulting in $5.2 million net income (including an $11.0 million gain) versus a prior-year loss.
3. Profitability and Balance Sheet Strength
The company expanded net income by $48.4 million versus the prior fiscal year and increased adjusted EBITDA by $26 million. Real estate actions included closing three stores, while ending Q4 with $66.1 million in cash, zero debt, and inventory down 7.4% to $113.5 million.
4. Fiscal 2026 Outlook
Management targets mid- to high-single-digit total sales growth and further margin expansion in fiscal 2026, with a $34–38 million adjusted EBITDA goal. Q1 comparable store sales are trending in the high-single digits, supported by refined merchandise assortments and enhanced operational discipline.