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Nov 01, 2025
Citi Trends Q3 2025 Earnings Report
Citi Trends reported a revenue increase and reduced net loss in Q3 2025.
Key Takeaways
Citi Trends delivered strong Q3 results with a 10.8% comparable store sales growth and higher traffic across all geographies. Despite a net loss, the company showed signs of operational progress and raised full-year guidance.
Comparable store sales grew 10.8%, marking the fifth consecutive quarter of positive growth.
Net loss narrowed slightly to $6.9M from $7.2M last year.
Revenue rose 10.1% YoY to $197.1M, driven by traffic, basket, and conversion growth.
Gross margin held at 38.9%, down 90bps due to timing of freight and prior year markdown favorability.
Revenue by Geographic Location
Forward Guidance
Citi Trends raised its full-year 2025 guidance, projecting higher comparable store sales, margin expansion, and improved EBITDA.
Positive Outlook
- Full-year comparable store sales expected to grow high-single digits.
- Gross margin forecast to expand ~230 bps YoY.
- SG&A leverage expected to improve by ~90 bps.
- Full-year EBITDA projected between $10M and $12M, exceeding previous outlook.
- Q4 expected to see continued sales momentum with strong holiday performance.
Challenges Ahead
- Net loss remains for Q3 despite sales growth.
- Gross margin declined YoY in Q3 due to freight pull-forward.
- Adjusted EBITDA remains negative for the quarter.
- SG&A expenses increased due to incentive compensation.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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