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Feb 01, 2025
Citi Trends Q4 2024 Earnings Report
Citi Trends reported its Q4 2024 earnings with $211.2 million in net sales and a gross margin expansion, despite posting a net loss due to tax adjustments.
Key Takeaways
Citi Trends achieved net sales of $211.2 million in Q4 2024 with comparable store sales growth of 6.4%. Gross margin expanded by 60 basis points year-over-year to 39.7%. The company reported a net loss of $14.2 million, primarily driven by a non-cash valuation allowance on deferred tax assets.
Q4 2024 net sales were $211.2 million, down 1.9% due to a shorter quarter compared to Q4 2023.
Gross margin expanded to 39.7%, up 60 basis points year-over-year.
Net loss was $14.2 million, impacted by a $15.5 million non-cash tax expense.
Comparable store sales increased by 6.4%, with improved traffic, basket size, and conversion.
Forward Guidance
Citi Trends expects low to mid-single digit comparable store sales growth and significant EBITDA improvement for fiscal 2025, alongside planned store remodels and openings.
Positive Outlook
- Continued comparable store sales growth momentum into Q1 2025.
- Expected gross margin expansion of at least 220 basis points in fiscal 2025.
- SG&A expected to leverage between 30 to 50 basis points in fiscal 2025.
- Plans to remodel approximately 50 stores and open up to 5 new locations.
- Capital expenditures planned between $18 million to $22 million for fiscal 2025.
Challenges Ahead
- Impact of non-cash tax adjustments on quarterly earnings.
- Lower adjusted EBITDA compared to the prior year period.
- Increased expenses related to one-time strategic costs.
- Store closures impacting overall store count.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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