Citi Trends Reports 8% Revenue Growth and Net Income Turnaround in Q2 2025

Citi Trends, Inc. reported a notable financial performance for the second quarter and first half of fiscal 2025, with net sales reaching $190.8 million for the thirteen weeks ended August 2, 2025, an increase of 8.0% from $176.6 million in the same period last year. For the first twenty-six weeks, net sales totaled $392.5 million, up 8.2% from $362.8 million in the prior year. The company achieved a net income of $3.8 million for the second quarter, a significant turnaround from a net loss of $18.4 million in the same quarter of 2024. Similarly, net income for the first half of 2025 was $4.7 million, compared to a loss of $21.8 million in the previous year.

The company experienced a decrease in cost of sales, which fell to $114.5 million in the second quarter, down 5.8% from $121.6 million in the prior year. This reduction contributed to a decrease in the cost of sales as a percentage of total sales, which dropped to 60.0% from 68.9%. Selling, general, and administrative expenses also increased, rising to $78.9 million, primarily due to higher corporate expenses and occupancy costs. However, as a percentage of sales, these expenses decreased slightly to 41.4% from 41.8% in the previous year.

Citi Trends continues to focus on strategic growth, operating 590 stores across 33 states as of August 2, 2025. The company has been actively managing its inventory, which stood at $117.6 million, a decrease of 12.9% compared to the previous year. The company also reported a gain of $11.0 million from the sale of its corporate office building, which positively impacted its financial results. Additionally, Citi Trends has been repurchasing shares, returning $6.3 million to stockholders in the first half of fiscal 2025.

Looking ahead, Citi Trends anticipates that its operations will be influenced by ongoing economic conditions, including inflation and changes in consumer sentiment. The company plans to continue investing in new stores and remodels, with capital expenditures expected to be between $22 million and $25 million for the fiscal year. The management remains cautious about potential challenges, including supply chain disruptions and shifts in consumer preferences, while expressing confidence in the company's ability to adapt and grow in the current market environment.