Citi Trends (CTRN) Q2 2027 earnings summary

Executive summary

• Achieved eighth consecutive quarter of comparable store sales growth, with Q2 2026 comps up 10.5% and a two-year stack of 19.7%.

• Q2 2026 net sales rose 10.9% year-over-year to $211.6 million; year-to-date sales increased 12.7% to $442.5 million.

• Q2 net loss was $0.9 million, primarily due to the absence of a prior-year $11 million building sale gain; year-to-date net income was $6.8 million.

• Adjusted EBITDA for Q2 was $5.5 million, up $6.6 million year-over-year; first half EBITDA totaled $19.4 million, surpassing all of 2025.

• Launched Insiders Club CRM platform and expanded new-store pipeline.

Financial highlights

• Q2 total sales were $211.6 million, up 10.9% year-over-year; comparable store sales increased 10.5%.

• Q2 gross margin expanded 60 basis points to 40.6%, driven by higher merchandise margin and lower shrink.

• Adjusted SG&A expenses were $80.4 million, leveraging 260 basis points as a percent of sales; SG&A as adjusted was 38.0% of sales, improved from 40.6% in Q2 2025.

• Cash and cash equivalents stood at $55.9 million at quarter-end, with no debt and no borrowings under a $75 million credit facility.

• Inventory at quarter-end was $126.4 million, up 7.5% year-over-year, below sales growth.

Outlook and guidance

• Raised full-year comparable store sales growth outlook to 9%-11% (from 8%-10%), and total sales growth to 10%-12%.

• Gross margin expected to expand 50-70 basis points; adjusted SG&A leverage to improve by 160-180 basis points.

• Adjusted EBITDA guidance increased to $38-$42 million, with margin expansion of 230 basis points over 2025.

• Plan to open approximately 20 new stores (down from 25) and remodel 60-65 locations (up from 50) in 2026; capital expenditures unchanged at $35-$40 million.

• Year-end cash balance expected to be flat to last year’s $66 million.