Citi Trends Sales Jump 9 Percent in Q2
Citi Trends (NASDAQ:CTRN) reported second quarter 2025 earnings on August 26, 2025, highlighted by comparable sales growth of 9.2% in the second quarter and an adjusted EBITDA loss of $2.6 million, reflecting meaningful top-line improvement and ongoing turnaround initiatives. With a broad-based sales lift, a 40% gross margin rate (up 890 basis points year-over-year), and a raised full-year guidance, the company provided granular detail on strategy execution, inventory discipline, and long-term expansion plans. Below, we detail three critical insights shaping the investment narrative for Citi Trends, including operational transformation, financial controls, and future growth drivers.
Consistent comparable sales growth was achieved despite a 5.7% reduction in in-store inventory and double-digit declines in total inventory, signaling improved inventory productivity and effective supply chain changes. The company’s strategy is rooted in a dedicated focus on its core customer, investment in updated assortments, and disciplined operational execution across all regions and categories.
Sustained growth in both top line and gross margin reflects improved inventory efficiency and operational changes.
Source Fool.com
