Citi Trends 2026 Q3 Earnings Revenue Growth Outpaces Loss Reduction

Citi Trends (CTRN) reported fiscal 2026 Q3 earnings on Dec 10, 2025, delivering a 10.1% revenue increase to $197.09 million, surpassing 2025 Q3 results by $10 million. The company maintained stable EPS at -$0.86 while narrowing its net loss by 3.6% year-over-year. Guidance for Q4 remains in line with expectations, projecting 4-6% revenue growth and adjusted EPS of $0.15-0.20.

Revenue

Net sales accounted for the entire $197.09 million in total revenue, reflecting strong performance across the company’s core offerings. The 10.1% year-over-year increase underscores resilience in consumer demand, despite broader macroeconomic challenges.

Earnings/Net Income

Citi Trends maintained stable EPS at -$0.86 in 2026 Q3 compared to 2025 Q3. Meanwhile, the company successfully narrowed its net loss to $-6.89 million in 2026 Q3, reducing losses by 3.6% compared to the $-7.15 million net loss reported in 2025 Q3. While EPS remained stable at -$0.86, the company successfully narrowed its net loss by 3.6% year-over-year.

Post-Earnings Price Action Review

The strategy of buying CTRN when revenue beats and holding for 30 days delivered moderate returns but underperformed the benchmark. The strategy achieved a 54.21% return, while the benchmark returned 86.69%. The Sharpe ratio was 0.15, indicating a reasonable risk-adjusted return. However, the maximum drawdown was 0%, suggesting the strategy avoided losses but did not capitalize on broader market gains.

CEO Commentary

Citi Trends’ CEO, Mr. Jeffries, emphasized that the company faced "unprecedented challenges in Q3 due to shifting consumer spending patterns and inventory management pressures," while highlighting strategic investments in digital commerce and store optimization as key growth drivers. He noted, "Our focus remains on balancing short-term profitability with long-term resilience," underscoring a cautious outlook amid macroeconomic uncertainties. Mr. Jeffries reaffirmed commitment to enhancing customer experience through targeted promotions and supply chain efficiency, stating, "We are laser-focused on operational discipline to navigate this dynamic environment."

Guidance

The CEO outlined forward-looking expectations, stating, "We anticipate Q4 revenue growth of 4-6% year-over-year, supported by holiday demand and inventory replenishment strategies," while guiding to adjusted EPS of $0.15-0.20, excluding non-recurring charges. Capital expenditures are projected to remain below $5 million for the remainder of 2026, with a prioritization of "high-impact, low-cost initiatives." Mr. Jeffries reiterated confidence in achieving breakeven net income by year-end, though acknowledged, "Near-term profitability remains subject to macroeconomic headwinds."

Additional News

DA Davidson analyst Michael Baker raised CTRN’s price target to $52 from $43 on Dec 3, 2025, citing strong comp sales momentum and above-average incremental margins. The company also revealed plans for 2027, including a 10% store expansion and 15% sales growth, with a target of tripling EBITDA to $45 million. However, analysts caution that the stock’s $350 million market cap may already reflect 2027 expectations, limiting near-term upside.