Citi Trends Raises Full-Year 2025 Guidance for Mid to High-Single Digit Comparable Store Sales Growth

Citi Trends has updated its earnings guidance for FY2025, expecting comparable store sales growth of mid to high-single digits, above its previous outlook of mid-single digit growth. This is a significant increase and indicates a strong performance for the company in the upcoming year.

Citi Trends, Inc. (NASDAQ: CTRN) has updated its earnings guidance for the full year 2025, signaling a strong performance outlook for the company. The retailer, which focuses on affordable apparel and home trends, expects comparable store sales growth of mid to high-single digits, surpassing its previous outlook of mid-single-digit growth [1].

The updated guidance reflects Citi Trends' robust Q2 fiscal 2025 performance. The company reported total sales of $190.8 million, an 8% year-over-year increase, and a 9.2% rise in comparable store sales, marking the fourth consecutive quarter of growth [2]. The company's gross margin rate reached 40.0%, the highest for a second quarter since fiscal 2021, driven by reduced markdowns and improved inventory management [3].

The positive Q2 results have led to a revision in the company's full-year outlook. Citi Trends expects a gross margin expansion of approximately 210 to 230 basis points compared to 2024, supported by improved inventory management and supply chain efficiencies. Additionally, the company projects full-year EBITDA between $7 million and $11 million, a significant improvement over 2024 [1].

The updated guidance was well-received by investors, with shares of Citi Trends rising more than 2% following the announcement [3]. The stock's positive reaction reflects growing confidence in the company's ability to execute on its strategic initiatives, including store remodels, product assortment improvements, and digital integration [1].

Overall, Citi Trends' updated earnings guidance indicates a strong performance trajectory for the upcoming year. With continued momentum in comparable store sales and margin expansion, the company is positioned to benefit from its ongoing transformation and evolving consumer trends in the retail sector [1].

References:
[1] Citi Trends (CTRN) Reports Strong Q2 Results, Raises Fiscal Guidance (https://tokenist.com/citi-trends-ctrn-reports-strong-q2-results-raises-fiscal-guidance/)
[2] Citi Trends Posts 9.2% Comp Gain in Q2 (https://www.mitrade.com/insights/news/live-news/article-8-1069818-20250826)
[3] Citi Trends rises over 2% as Q2 earnings beat, raises full-year outlook (https://www.investing.com/news/earnings/citi-trends-rises-over-2-as-q2-earnings-beat-raises-fullyear-outlook-93CH-4210726)