In This Article:
Citi Trends Inc (NASDAQ:CTRN) shares traded higher on Tuesday after the fourth-quarter earnings results.
The company reported a fourth-quarter sales decline of 1.9% year-on-year to $211.17 million, missing the analyst consensus estimate of $211.54 million.
Comparable store sales increased 6.4%. Adjusted EPS loss of $1.54 missed the consensus estimate for EPS of $0.18.
Gross margin of 39.7% expanded 60 basis points Y/Y due to lower freight expense, partially offset by planned in-season markdowns.
Quarter-end total inventory decreased 6% versus last year. Adjusted EBITDA of $7.1 million decreased 29% Y/Y.
Citi Trends held $61.1 million in cash and equivalents as of February 1, 2025.
Also Read: Hyperfine, Nvidia Partner To Make Brain MRIs More Affordable
In the fourth quarter, the company repurchased 145,238 shares of its common stock for a total spend of $3.8 million
At the end of the fiscal 2024, $46.2 million remained available under the company’s share repurchase program.
“This top-line growth was driven by strong customer traffic and consistent increase in basket size. Our renewed focus on delivering trendy fashions, great brands, and amazing prices combined with compelling off-price deals strongly resonated with our customers,” said CEO Ken Seipel.
“As we enter a period of economic uncertainty, we believe we are in a good position to gain market share due to the addition of “off-price” to our business model, which enables us to offer high margin, great brands at exceptional prices with minimal impact of tariff-based cost pressures.”
Outlook: Citi Trends sees FY25 comparable store sales growth of low to mid-single digits. The company expects FY25 adjusted EBITDA of $5 million – $9 million.
The company plans to open up to 5 new stores, remodel approximately 50 stores, and close up to 5 locations.
Price Action: CTRN shares traded higher by 11.2% at $23.95 at last check Tuesday.
Read Next:
Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.
Get the latest stock analysis from Benzinga?
This article Citi Trends Stock Jumps Despite Q4 Miss, Bets Big On 'Off-Price' Model originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.