Citi Trends said first-quarter fiscal 2026 total sales rose 14.4% to $230.9 million from the year-earlier period, as comparable store sales climbed 13.9% and the company posted a two-year stack of 23.8%.
Net income increased to $7.8 million from $0.9 million a year ago. Adjusted EBITDA more than doubled to $13.9 million from $6.4 million.
Gross margin improved to 40.0%, up 40 basis points from the prior-year quarter, while adjusted SG&A fell to 33.9% of sales, a 250-basis-point improvement.
Inventory ended the quarter at $115.2 million, up 4.8% from the same quarter last year. Cash was $81.1 million, with no debt and no borrowings on its $75 million credit facility.
During the quarter, Citi Trends opened 2 stores, closed 1 and remodeled 25.
For fiscal 2026, the company now expects comparable store sales growth of 8% to 10% and total sales growth of 9% to 11%. It is targeting adjusted EBITDA of $35 million to $40 million, more than double fiscal 2025, with adjusted EBITDA margin expansion of about 200 basis points.
The company kept its real estate plan unchanged at about 25 new stores, roughly 50 remodels and 4 closures, and maintained capital spending guidance at $35 million to $40 million. Following these announcements, the company's shares moved -3.77%, and are now trading at a price of $44.275. For the full picture, make sure to review Citi Trends Inc's 8-K report.
