Citi Trends (CTRN) UBS Global Consumer and Retail Conference summary

Strategic transformation and growth plan

• Transformation strategy is in early stages, focused on sustainable value creation and disciplined growth, with a clear path to $45 million EBITDA by fiscal 2027 driven by comp sales growth, margin expansion, and new store openings.

• Three-phase framework: repair (restoring fundamentals and refining customer focus), execute (implementing best practices and SG&A leverage), and expand (strategic store growth and market share gains).

• AI-based analytics and planning systems are used for inventory management, store expansion, and sales prediction, with 90% accuracy in forecasting new store performance.

• Store remodels and localized marketing initiatives are enhancing customer experience and brand presence, with plans to remodel 50 stores annually and open 25 new stores in 2026, ramping to 40 per year from 2027.

• Debt-free balance sheet and ample liquidity support capital investments in technology, store upgrades, and potential future acquisitions.

Leadership and vision

• CEO with extensive retail turnaround experience and significant personal investment.

• Leadership compensation is closely aligned with shareholder interests.

Business overview and market position

• Operates as an off-price retailer focused on apparel, shoes, and home goods, with a strong emphasis on Black customers.

• Maintains 592 stores across 33 states, targeting neighborhood locations.

• Store count projected to reach 645 by 2027, with 25–40 new stores added annually and selective closures.