📊 CTRN Key Takeaways
Investment Thesis
Citi Trends is operationally unprofitable with negative operating income (-0.6% margin) and negative net income despite stable revenue growth of 0.7% YoY, indicating fundamental business deterioration. The company is burning cash with negative free cash flow of -14.1M while carrying 41.6M in long-term debt, creating unsustainable capital structure dynamics. Profitability metrics across ROE (-2.0%) and ROA (-0.5%) are deeply negative, suggesting the business model is not generating adequate returns on invested capital.
CTRN Strengths
- Maintains positive gross margin of 28.9% indicating product-level profitability
- Adequate liquidity cushion with 51.1M in cash representing 11% of total assets
- Stable revenue base with modest 0.7% YoY growth showing customer retention despite headwinds
CTRN Risks
- Operating losses persist with negative operating margin of -0.6%, indicating inability to control expenses relative to revenue
- Negative free cash flow of -14.1M combined with 41.6M debt load threatens financial sustainability and limits strategic flexibility
- Severely negative return metrics (ROE -2.0%, ROA -0.5%) demonstrate capital is being destroyed rather than deployed productively
- Interest coverage ratio of -42.3x indicates inability to service debt from operating earnings, creating refinancing risk
- Quick ratio of 0.38x reveals potential working capital stress and inventory management challenges typical of distressed retail
Key Metrics to Watch
- Operating margin trajectory and path to profitability
- Free cash flow generation and ability to reduce debt burden
- Inventory turnover and working capital efficiency
- Same-store sales trends and customer traffic metrics
- Quarterly gross margin stability under competitive retail pressures
CTRN Financial Metrics
💡 AI Analyst Insight
Citi Trends Inc presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CTRN Profitability Ratios
CTRN vs Consumer Sector
How Citi Trends Inc compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CTRN Balance Sheet & Liquidity
CTRN 5-Year Financial Trend
5-Year Trend Summary: Citi Trends Inc's revenue has shown modest growth of 1% over the 5-year period. The most recent EPS of $7.17 reflects profitable operations.
CTRN Growth Metrics (YoY)
CTRN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $179.1M | $871.0K | $-0.27 |
| Q2 2025 | $176.6M | $871.0K | $0.46 |
| Q1 2025 | $186.3M | $871.0K | $0.11 |
| Q3 2024 | $179.1M | -$15.5M | $-0.47 |
| Q2 2024 | $173.6M | -$11.7M | $-0.61 |
| Q1 2024 | $179.7M | -$3.4M | $-0.42 |
| Q3 2023 | $179.5M | -$15.5M | $-0.47 |
| Q2 2023 | $173.6M | -$11.7M | $-0.31 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CTRN Capital Allocation
CTRN SEC Filings
Access official SEC EDGAR filings for Citi Trends Inc (CIK: 0001318484)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CTRN
What is the AI rating for CTRN?
Citi Trends Inc (CTRN) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CTRN's key strengths?
Maintains positive gross margin of 28.9% indicating product-level profitability. Adequate liquidity cushion with 51.1M in cash representing 11% of total assets.
What are the risks of investing in CTRN?
Operating losses persist with negative operating margin of -0.6%, indicating inability to control expenses relative to revenue. Negative free cash flow of -14.1M combined with 41.6M debt load threatens financial sustainability and limits strategic flexibility.
What is CTRN's revenue and growth?
Citi Trends Inc reported revenue of $589.6M.
Does CTRN pay dividends?
Citi Trends Inc pays dividends, with $0.8M distributed to shareholders in the trailing twelve months.
Where can I find CTRN SEC filings?
Official SEC filings for Citi Trends Inc (CIK: 0001318484) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CTRN's EPS?
Citi Trends Inc has a diluted EPS of $-0.27.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.