By Adriano Marchese

Citi Trends swung to a net profit boosted by higher sales and revenue in the fourth quarter, a momentum which is expected to continue into the new year.

For the three months ended Jan. 31, the off-price value clothing retailer posted on Tuesday a swing to a net income of $7.4 million, or 88 cents a share, compared with a loss of $14.2 million, or $1.71 a share, in the same quarter a year ago.

Adjusted earnings before interest, taxes, depreciation and amortization came to $11.9 million a share, up from C$7.1 million.

Total sales rose 9.1% to $230.4 million. Comparable sales growth was 8.9%.

Citi said the momentum has continued into 2026, with first-quarter-to date comparable store sales trending in the high-single digits.

The company has been continuing its inventory efficiency initiatives, with merchandise inventory down 7.4% in the quarter, as well as a 2% decline in average store inventory.

The company also closed three stores in the period.

Looking ahead to the full year, Citi expects sales to grow between 6% to 8%, with comparable-store sales in the range of 5% to 7%. Gross margin is expected to expand by about 100 basis points, and adjusted earnings before interest, taxes, depreciation and amortization to be between C$34 million and $38 million.

Citi also plans to open about 25 new stores and remodel about 50 of them. It added that four stores are set for closure.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

March 17, 2026 07:18 ET (11:18 GMT)

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