Citi Trends 2026 Q2 Earnings Strong Performance as Net Income Surges 120.7%

Citi Trends (CTRN) reported a significant turnaround in its fiscal 2026 Q2 earnings, with net income surging 120.7% year-over-year. The company exceeded expectations with improved profitability and revenue growth, while updating its full-year guidance to reflect stronger performance and operational discipline.

Revenue
Total revenue rose 8.0% year-over-year to $190.75 million in the second quarter of 2026, compared to $176.55 million in the same period of 2025. The increase was driven by strong transaction volume and broad-based product performance across stores, contributing to the fourth consecutive quarter of mid to high single-digit comparable sales growth.

Earnings/Net Income
Citi Trends returned to profitability, reporting net income of $3.82 million in 2026 Q2, a dramatic reversal from a net loss of $18.41 million in the prior-year period. Earnings per share (EPS) improved from a loss of $2.21 to $0.48, representing a 121.7% positive swing. This marked a strong earnings rebound that exceeded expectations and highlighted the company’s operational improvements.

Price Action
On the stock front, Citi Trends’ shares declined 1.82% in the latest trading day and fell 6.09% over the past full trading week. However, the stock saw a 9.44% gain month-to-date, indicating mixed investor sentiment following the earnings release.

Post-Earnings Price Action Review
The company’s strong earnings and positive guidance contributed to a cautiously optimistic outlook despite short-term stock volatility. Investors appeared to focus on the long-term recovery narrative, including gross margin expansion and EBITDA growth targets. However, the recent weekly decline suggests market uncertainty or profit-taking behavior.

CEO Commentary
Executive Chair Ken Seipel emphasized disciplined execution across operations, including improved inventory efficiency, enhanced store experiences, and the use of AI-based allocation systems. He highlighted strategic initiatives such as expanding plus-sized and big men’s apparel, refining trend curation with a new trend director, and clustering in key markets like Jacksonville and Columbia. Seipel also outlined plans for store remodels, new store openings, and closures, positioning Citi Trends for sustainable growth. Leadership expressed confidence in achieving long-term EBITDA targets of $40 million or more by 2027, supported by strong sales momentum and operational improvements.

Guidance
Citi Trends updated its full-year 2025 guidance to include mid to high single-digit comparable store sales growth, 210–230 basis points of gross margin expansion, and EBITDA in the range of $7 million to $11 million. Adjusted SG&A is expected to leverage by 60–90 basis points, with full-year expenses estimated at approximately $310 million. The company plans to open three new stores, close three, and remodel 60 locations in 2025, with capital expenditures between $22 million and $25 million. CFO Heather Plutino noted a projected 20%–25% EBITDA flow-through on incremental sales post-2025 and maintained an effective tax rate of approximately 0%.

Additional News
Citi Trends has not disclosed any significant M&A activity or C-level changes in the three weeks leading up to its earnings release. The company also has not announced any dividend or buyback programs during this period. The article titled *Citi Trends (CTRN) Stock Price & Overview*, dated September 5, 2025, appears incomplete and does not provide relevant non-earnings related news within the required timeframe.