Citi Trends (CTRN) Q2 2027 earnings summary

Executive summary

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

• Year-to-date total sales rose 12.7% to $442.5 million, with comparable store sales up 12.2%.

• Adjusted EBITDA for Q2 reached $5.5 million, a $6.6 million improvement over last year; first half EBITDA totaled $19.4 million, surpassing all of 2025.

• Net income for the first half reached $6.8 million.

• 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, partially offset by higher freight costs.

• Adjusted SG&A expenses were $80.4 million, leveraging 260 basis points as a percent of sales.

• Q2 net loss was $0.9 million, or adjusted net income of $0.4 million, compared to Q2 2025 net income of $3.8 million, which included an $11.0 million gain on a building sale.

• Ended Q2 with $55.9 million in cash, no debt, and no drawings on a $75 million revolver.

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 over 2025; adjusted SG&A leverage now 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.

• Year-end cash balance expected to be flat to last year’s $66 million; capital expenditures unchanged at $35-$40 million.