Citi Trends (CTRN) investor relations material

Leadership and transformation progress

• CEO with extensive retail turnaround experience has led a doubling of market cap and projects further doubling potential.

• Transformation strategy focuses on operational improvements, customer connection, and a disciplined growth plan.

• Management team includes experienced leaders in finance and merchandising, with a focus on value retailing.

• Consistent industry-leading comparable sales growth achieved through transaction increases and product strength.

• Three-phased framework: repair, execute, and growth, underpins sustainable, profitable expansion.

Financial performance and outlook

• Holiday comp store sales rose 9.3% on top of last year's 7.1%, with year-to-date comp sales up 9.8%.

• Targeting $900 million in sales and $45 million EBITDA by 2027, with gross margin expansion to 42%.

• Plans to leverage SG&A by 200 basis points and achieve a 5% profit margin in 2027.

• Operates debt-free with $65 million projected cash and $140 million liquidity, enabling growth investments.

• Capital spend of $45 million planned for 2026–2027, focused on remodels, new stores, and technology.

Business model and customer strategy

• Off-price retail model capitalizes on supply chain inefficiencies, offering branded products at deep discounts.

• Three-tiered product strategy serves all income levels, with a focus on African-American families.

• Extreme value segment targeted to grow to 10% of sales, driving traffic and margin.

• High-frequency customer base, with over one-third shopping weekly or biweekly.

• Cultural relevance and community connection are key competitive advantages.