Overview

• US off-price apparel retailer's fiscal Q1 sales rose 14.4% yr/yr, comps up 13.9%

• Adjusted EBITDA more than doubled from prior yr, driven by higher traffic and basket size

• Company reaffirms fiscal 2026 outlook, expects adjusted EBITDA of $35 mln to $40 mln

Outlook

• Citi Trends expects fiscal 2026 comparable store sales growth of 8% to 10%

• Company sees 2026 adjusted EBITDA of $35 mln to $40 mln, reaffirming increased outlook

• Gross margin for 2026 expected to expand 50 to 70 basis points, below prior outlook due to fuel surcharges

Result Drivers

• CUSTOMER TRAFFIC & BASKET SIZE - Growth driven by increased customer traffic and larger basket size, with customers responding to improved assortment and value, per CEO Ken Seipel

• CATEGORY & GEOGRAPHIC STRENGTH - Performance accelerated across all merchandise categories and geographies, according to CEO Ken Seipel

• EXPENSE LEVERAGE - SG&A expense as a percentage of sales decreased, benefiting from higher sales leveraging fixed costs and ongoing disciplined expense control

Company press release: ID:nBwccfy2Ya

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales		$230.9 mln
Q1 EPS		$0.91
Q1 Comparable Sales Growth		13.9%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

• Wall Street's median 12-month price target for Citi Trends Inc is $67.50, about 52.4% above its June 1 closing price of $44.28

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 54 three months ago

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