Citi Trends 2026 Q3 Earnings Revenue Up 10.1% as Net Loss Narrows 3.6%

Citi Trends (CTRN) reported fiscal 2026 Q3 earnings on Dec 10, 2025, with revenue rising 10.1% year-over-year to $197.09 million, outperforming expectations. The company maintained a stable EPS of $-0.86 but reduced its net loss to $6.89 million, a 3.6% improvement from the prior year. Guidance for Q4 includes high single-digit comparable store sales growth and gross margins of 40-41%.

Revenue

Citi Trends reported total net sales of $197.09 million, which accounted for the entirety of its revenue in the quarter. This reflects a 10.1% year-over-year increase, driven by sustained demand for its product offerings.

Earnings/Net Income

While EPS remained stable at $-0.86, the narrowed net loss signals improving financial health. The company’s ability to reduce losses by 3.6% to $6.89 million demonstrates progress in cost management and operational efficiency.

Price Action

The stock experienced mixed short-term performance, dropping 4.16% intraday but gaining 4.72% weekly and surging 18.55% month-to-date.

Post-Earnings Price Action Review

The strategy of buying CTRN when revenue beats and holding for 30 days yielded a 54.21% return, underperforming the 86.69% benchmark. A Sharpe ratio of 0.15 suggests moderate risk-adjusted returns, while a 0% maximum drawdown indicates the strategy avoided losses but missed broader market gains.

CEO Commentary

CEO James D. Citron acknowledged challenges, including weak consumer spending and inventory pressures, but emphasized strategic priorities: digital transformation, store-level optimization, and demand-aligned procurement.

Guidance

The company expects Q4 comparable store sales growth in the high single digits and gross margins of 40-41%, reflecting confidence in its operational and inventory strategies.

Additional News

On Dec 3, DA Davidson analyst Michael Baker raised CTRN’s price target to $52 from $43, maintaining a Buy rating, citing momentum in holiday sales and fresh inventory. Separately, an analyst highlighted Citi Trends’ potential to triple EBITDA to $45 million by 2027 through margin expansion and store growth, though cautioned the stock’s elevated valuation may limit upside.

Revenue