Citi Trends (NASDAQ:CTRN) reported a robust recovery for the fourth quarter ended January 31, 2026, marking a pivotal turn for the off-price retailer.
Total sales for the period rose 9.1% to $230.4 million, underpinned by an 8.9% increase in comparable store sales.
Management attributed the growth to a successful implementation of a three-tiered merchandise assortment that resonated with its core customer base, resulting in higher traffic and larger transaction values.
The retailer's bottom line saw a dramatic improvement, posting a net income of $7.4 million, or $7.2 million on an adjusted basis.
This stands in sharp contrast to the adjusted net loss of $12.8 million reported in the fourth quarter of 2024.
The swing to profitability was supported by a gross margin expansion to 39.9%, a 20-basis-point improvement driven by reduced markdowns and enhanced inventory efficiency.
Adjusted EBITDA for the quarter reached $11.9 million, up from $7.1 million in the prior-year period.
Operational discipline remained a central theme of the report, as the company successfully leveraged its selling, general, and administrative (SG&A) expenses.