AI Earnings Predictions for Citi Trends Inc. (CTRN)

EX-99.1

2 tm2623924d1_ex99-1.htm

EXHIBIT 99.1

Exhibit 99.1

CITITRENDS ANNOUNCES SECOND QUARTER FISCAL 2026

RESULTS

Company raises Fiscal 2026 outlook

Q2 2026 total sales increased 10.9% to $211.6 million; year-to-date total sales increased 12.7% to $442.5 million

Q2 2026 comparable store sales growth of 10.5%, 19.7% on a two-year basis; year-to-date comparable store sales of 12.2%, 21.8% on a two-year basis

Net Income for the first half of Fiscal 2026 of $6.8 million; adjusted EBITDA* of $19.4 million, an increase of $14.1 million to first half 2025 results

SAVANNAH, GA (August 25, 2026) — Citi Trends, Inc. (NASDAQ: CTRN), a leading off-price value retailer of apparel, accessories and home trends primarily for Black families in the United States, today reported results for the second quarter ended August 1, 2026. For purposes of comparison, unless otherwise stated, metrics in this release are compared to the 13-week quarter and 26-week year-to-date period ended August 2, 2025.

Chief Executive Officer Comments

Ken Seipel, Chairman and Chief Executive Officer said; “CITITRENDS delivered another strong quarter, with comparable store sales increasing 10.5% and 19.7% on a two-year basis, marking our eighth consecutive quarter of comparable store sales growth. Just as importantly, our disciplined execution is translating that sales momentum into significantly improved profitability, with first half net income of $6.8 million and adjusted EBITDA* of $19.4 million -- already exceeding the adjusted EBITDA* we generated for all of fiscal 2025.”

Seipel continued; “We remain focused on consistent execution, strong sales flow-through to profit, and disciplined growth. With continued momentum in our merchandise strategy, launch of our new Insiders Club customer relationship management platform, a growing new-store pipeline, and a strong, debt-free balance sheet, we believe CITITRENDS is increasingly well positioned to accelerate profitable growth and create meaningful long-term shareholder value.”

CITITRENDS Brand Promise:

Styles That See You, Prices That Amaze You and Trends That Tell Your Story

Financial Highlights – Second Quarter 2026

·Total sales of $211.6 million increased $20.9 million, or 10.9% vs. Q2 2025; comparable store sales increased 10.5% compared to Q2 2025 driven by increases in average basket and transaction count

·Gross margin of 40.6% an increase of 60 basis points vs. Q2 2025 due to improved merchandise margin and investments to reduce shrink, slightly offset by higher freight due to increased fuel surcharges

·SG&A expense dollars of $82.3 million, $80.4 million as adjusted*, or 38.0% of sales vs. Q2 2025 SG&A expense of $78.9 million, or $77.4 million as adjusted*, or 40.6% of sales

·Net loss of $0.9 million or adjusted net income* of $0.4 million vs. net income of $3.8 million in Q2 2025 (which included an $11.0 million gain on the sale of the Savannah office building), or adjusted net loss* of $5.4 million

·Adjusted EBITDA* of $5.5 million, an increase of $6.6 million compared to adjusted EBITDA* loss of $1.1 million in Q2 2025

·Real Estate: Opened four stores and closed one, ending the period with 594 locations. Remodeled 26 stores, completing 51 remodels for the year

·Cash of $55.9 million at quarter-end, with no debt and no borrowings under a $75 million credit facility

·Merchandise inventory was $126.4 million at the end of the quarter, an increase of 7.5% vs. Q2 2025

Financial Highlights – 26 weeks ended August 1,

2026

·Total sales of $442.5 million increased $50.0 million, or 12.7% vs. 2025; comparable store sales increased 12.2% compared to 2025, 21.8% on a two-year basis

·Net income of $6.8 million, $10.1 million as adjusted*, vs. net income of $4.7 million in 2025, or adjusted net loss* of $3.0 million

·Adjusted EBITDA* of $19.4 million compared to $5.3 million in 2025; improvement to last year of $14.1 million driven by higher sales, 50 basis point increase in gross margin rate and 260 basis points of SG&A leverage

Fiscal 2026 Outlook

The Company is updating its outlook for fiscal 2026 to incorporate second quarter results while maintaining its outlook for the second half of the year. Resulting outlook for fiscal 2026 compared to fiscal 2025 is as follows:

·Expecting comparable store sales growth in the range of 9% to 11%, slightly higher than previous outlook of 8% to 10%. Total sales growth is expected to be 10% to 12% for the year, slightly higher than previous outlook of 9% to 11%

·Gross margin is expected to expand approximately 50 to 70 basis points, in line with our previous outlook

·Adjusted SG&A* is expected to leverage approximately 160 to 180 basis points, higher than previous outlook of 130 to 160 basis points, due to the impact of higher sales on the fixed cost structure and ongoing disciplined expense control

·Adjusted EBITDA* is expected to be in the range of $38 million to $42 million, higher than previous outlook of $35 million to $40 milli

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