Citi Trends, Inc., the U.S. off-price value retailer of apparel, accessories and home trends targeting primarily African American customers, is reporting that total sales for the nine-week holiday period ending January 3 increased 9.6 percent to $191.2 million. Comparable store sales increased 9.3 percent versus the 2024 comparative period, representing a two-year stack of 16.4 percent comp sales growth.

For the year-to-date (YTD) period ending January 3, total sales increased 9.0 percent year-over-year to $780.8 million. Comparable store sales increased 9.8 percent compared to the comparative YTD period last year, representing a two-year stack of 13.3 percent comp sales growth.

Company CEO Ken Seipel said that the top-line momentum seen over the last five quarters continued through the holiday season, with comparable store sales growth driven by continued increases in both the number of transactions and average basket size.

“Our holiday sales were fueled by our elevated product assortment, including brands, fashion and exciting off-price deals, all of which resonated well with our customers,” Seipel noted. “This year, our in-store readiness was further supported with our ‘Joy Looks Good on You’ marketing campaign with refreshed branding on social media. Since launching the campaign, we’ve had over twelve million viral views and engagements. As a result of holiday performance, we are reaffirming our previously provided outlook.”

Fiscal 2025 Outlook
The company also reaffirmed its previously provided outlook for fiscal 2025 as follows:

  • Expecting full-year comparable store sales to be up high-single-digits.
  • Full-year gross margin is expected to expand approximately 230 basis points compared to 2024.
  • SG&A is expected to leverage approximately 90 basis points compared to 2024.
  • Full-year EBITDA is expected to be in the range of $10 million to $12 million, representing a $24 million to $26 million improvement over 2024.
  • Expecting the 2025 effective tax rate of approximately 0 percent.
  • For the year, the company will open 3 new stores, close 4 and remodel 62.
  • Capital expenditures for the full year are expected to be approximately $23 million.
  • Year-end cash balance is expected to be approximately $65 million.

The company also reaffirmed its prior comments for its fourth quarter outlook for fiscal 2025 as follows:

  • The company’s implied fourth-quarter comparable-store sales are expected to be up in the high single digits compared to Q4 2024. Fourth-quarter gross margin is expected to be in the range of 40 percent to 41 percent and SG&A is expected to be approximately $82 million.
  • Q4 EBITDA is expected to be in the range of $10 million to $12 million.

Citi Trends, Inc. operates 591 stores located in 33 states.

 Image courtesy Citi Trends, Inc.