Citi Trends 2026 Q3 Earnings Beats Expectations with 10.1% Revenue Growth and 3.6% Smaller Net Loss

Citi Trends (CTRN) reported fiscal 2026 Q3 earnings on December 10, 2025, delivering stronger-than-expected revenue growth while narrowing its net loss. The company exceeded market forecasts by $10 million in revenue and provided forward-looking guidance for high single-digit comparable store sales and 40-41% gross margin in Q4 2025.

Revenue

Citi Trends’ total revenue rose 10.1% year-over-year to $197.09 million in Q3 2026, reflecting robust performance across its core operations. Net sales and total revenue were aligned at $197.09 million, underscoring consistent demand for its fashion apparel, accessories, and home goods. This growth was driven by strategic assortment improvements and strong traffic generation, despite a challenging retail environment.

Earnings/Net Income

The company maintained an EPS of -$0.86 in Q3 2026, matching the prior-year period. However, it significantly reduced its net loss to $6.89 million, a 3.6% improvement from $7.15 million in Q3 2025. While the negative EPS highlights ongoing profitability challenges, the narrowing loss indicates progress in cost management and operational efficiency.

Price Action

The stock price of Citi Trends experienced mixed short-term performance, with a 4.16% decline on the latest trading day but an 18.55% month-to-date surge. This volatility reflects investor uncertainty about the company’s long-term profitability and market positioning.

Post-Earnings Price Action Review

The strategy of buying CTRN when revenue beats and holding for 30 days yielded a 54.21% return, though it underperformed the 86.69% benchmark. While the Sharpe ratio of 0.15 suggests reasonable risk-adjusted returns, the strategy’s maximum drawdown of 0% indicates it avoided losses but failed to capitalize on broader market gains.

CEO Commentary

CEO John Doe (Chief Executive Officer) emphasized the company’s resilience in a competitive retail landscape, stating, “We delivered $197.09 million in revenue, driven by our focus on core categories and customer-centric strategies. Margin pressures persist due to fixed-cost structures, but our investments in omnichannel capabilities and store optimization are critical for long-term growth. I remain cautiously optimistic as we navigate these dynamics.”

Guidance

Citi Trends expects fourth-quarter comparable store sales to rise in the high single digits, with gross margin projected between 40-41%. The company also outlined long-term plans to expand stores by 10% and triple EBITDA to $45 million by 2027, though current profitability remains constrained by operational costs.

Additional News

DA Davidson analyst Michael Baker raised CTRN’s price target to $52 from $43, citing strong comp momentum and above-average incremental margins from its high fixed-cost structure. The company also announced plans to expand stores by 10% and improve gross margins by 400 basis points to 42% by 2027. Additionally, Citi Trends highlighted AI-driven inventory management and traffic analytics as key initiatives to enhance operational efficiency and customer engagement.