1451 ET - Off-price retailer Citi Trends could more than double over the next two years, according to D.A. Davidson's Michael Baker and Keegan Cox. The analysts say comp sales were consistent throughout 3Q with each month between 9.5%-12% and momentum has continued into 4Q--yet the stock is still trading at a discount to peers due to currently lower margins. The analysts say inventory is new, differentiated and caters to trends, driving strong sales growth while much of the company's costs are fixed. "This in turn leads to significant profit and margin improvement, with long-term earnings power much higher than current levels." With shares already up nearly 70% year-to-date, the analysts say the stock still has a long way to go in a merchandise-driven turnaround led by a new CEO. (nicholas.miller@wsj.com)
(END) Dow Jones Newswires
December 03, 2025 14:51 ET (19:51 GMT)
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