Citi Trends, Inc. reported a net income of $871,000 for the first quarter of fiscal 2025, a significant turnaround from a net loss of $3.4 million in the same period last year. The company’s net sales increased by 8.3%, reaching $201.7 million compared to $186.3 million in the first quarter of fiscal 2024. This growth was primarily driven by a 9.9% increase in comparable store sales. The cost of sales, excluding depreciation, rose to $121.9 million, reflecting a 6.6% increase, but the cost as a percentage of sales decreased to 60.4% from 61.3% year-over-year, attributed to lower shrink and freight expenses.
In terms of operational metrics, Citi Trends operated 591 stores across 33 states as of May 3, 2025. The company’s inventory decreased to $109.9 million from $119.0 million a year earlier, indicating a strategic reduction in average in-store inventory levels. Selling, general, and administrative expenses saw a slight increase of 0.9% to $74.9 million, but as a percentage of sales, these expenses decreased to 37.1% from 39.8% in the prior year, reflecting improved operational efficiency.
Citi Trends also engaged in share repurchases, returning $6.3 million to shareholders during the quarter. The company’s cash and cash equivalents stood at $41.6 million, down from $58.2 million at the end of the first quarter of fiscal 2024. The company has a revolving credit facility with a $75 million commitment, which remains untapped as of the end of the reporting period, with only $2.2 million in letters of credit outstanding.
Looking ahead, Citi Trends anticipates that its operations will continue to be influenced by general economic conditions, including inflation and consumer sentiment. The company plans to invest approximately $20 million in capital expenditures for the fiscal year, focusing on opening new stores and remodeling existing locations. Management remains cautious about the potential impacts of economic uncertainties on consumer behavior and overall sales performance, particularly given the seasonal nature of the retail business.
About Citi Trends Inc
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