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May 03, 2025
Citi Trends Q1 2025 Earnings Report
Citi Trends returned to profitability with strong comparable sales growth and margin expansion.
Key Takeaways
Citi Trends delivered solid Q1 results, posting a 9.9% comp sales increase and a return to profitability with $0.9M in net income. Adjusted EBITDA was $5.4M, reversing a prior year loss, and the company raised its FY25 outlook.
Comparable store sales rose 9.9%, reflecting strong traffic and conversion.
Net income reached $0.9M, reversing a $3.4M loss in Q1 2024.
Gross margin expanded 90 bps to 39.6% due to better markup and lower shrink.
Adjusted EBITDA came in at $5.4M, exceeding expectations with 40% flowthrough.
Revenue by Geographic Location
Forward Guidance
Full-year outlook improved on stronger sales and margin expectations, with EBITDA guidance increased to $6–10M.
Positive Outlook
- Raised full-year comp store sales guidance to mid-single digits.
- Expecting gross margin to improve by 200 bps YoY.
- SG&A leverage forecast raised to 60–80 bps improvement.
- Full-year EBITDA outlook increased to $6–10M.
- Continued improvements in merchandising and supply chain driving results.
Challenges Ahead
- Gross margin outlook slightly below earlier guidance due to supply chain delays.
- Cautious macroeconomic environment cited, especially around tariffs.
- Still early in transformation efforts, limiting full realization of benefits.
- No earnings tax benefit expected, tax rate projected at 0%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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