Citi Trends, Inc. reported a significant increase in financial performance for the first quarter of fiscal 2026, ending May 2, 2026. The company achieved net sales of $230.9 million, a 14.4% increase from $201.7 million in the same period last year. This growth was driven by a 13.9% rise in comparable store sales and an additional $1.5 million from net store openings and closures. The company's net income also saw a substantial rise, reaching $7.8 million compared to $0.9 million in the prior year, resulting in basic earnings per share of $0.95, up from $0.11.
In terms of operational metrics, Citi Trends reported a total of 591 stores across 33 states as of the end of the reporting period. The company’s inventory increased to $115.2 million from $109.9 million year-over-year, reflecting the higher sales volume. The cost of sales, excluding depreciation, rose to $138.6 million, but as a percentage of sales, it decreased slightly to 60.0% from 60.4% in the previous year, attributed to lower shrink expenses despite rising freight costs.
Citi Trends has not engaged in share repurchases during the first quarter of fiscal 2026, contrasting with the $6.3 million spent on repurchases in the same quarter of the previous year. The company maintains a strong liquidity position, with cash and cash equivalents totaling $81.1 million, up from $41.6 million a year earlier. The company also has a revolving credit facility with a $75 million commitment, which remains untapped as of the end of the quarter.
Looking ahead, Citi Trends plans to invest between $35 million and $40 million in capital expenditures for fiscal 2026, primarily for the opening of approximately 25 new stores and remodeling around 50 existing locations. The company is closely monitoring economic conditions, including inflation and consumer sentiment, which could impact future performance. Management remains optimistic about leveraging its market position as a leading off-price retailer for Black families, focusing on maintaining adequate liquidity and investing in growth opportunities.
About Citi Trends Inc
Citi Trends, Inc. is an off-price retailer specializing in trendy, culturally relevant apparel, accessories, and home goods primarily for African American families in the U.S. It offers a curated mix of well-known brands, private labels, and extreme value deals through neighborhood stores in vibrant communities. The company emphasizes value, fashion, community engagement, and a store experience tailored to its core customer base.
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