Why Did CTRN Stock Gain Nearly 10% In Premarket Today?

The company beat Q3 revenue expectations and raised its fiscal 2025 EBITDA outlook.

Shares of Citi Trends Inc. (CTRN) jumped 10% in premarket trading on Tuesday after the company posted a better-than-expected third-quarter revenue and outlined a profit roadmap that suggests a $60 million Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) swing over the next three years. 

On Monday, CTRN stock climbed to its highest since February 2022, before paring gains to close 2.7% lower.

Q3 Earnings At A Glance

The company reported a 10% increase in Q3 net sales at $197.1 million, above Street estimates of $187.3 million, according to fiscal.ai data. The company’s net loss narrowed to $6.9 million in Q3 from a loss of $7.1 million a year earlier.

The retailer raised its fiscal 2025 outlook, now expecting high-single-digit comparable store sales growth and gross margin expansion of about 230 basis points versus 2024. 

Full-year EBITDA is forecast between $10 million and $12 million, marking a $24 - $26 million swing from last year. For Q4, Citi Trends anticipates high-single-digit comparable sales growth, gross margin of 40% - 41%, and EBITDA of $10 million to $12 million.

“We have established a clear line of sight to achieve approximately $45 million of EBITDA in fiscal 2027, which would represent a $60 million improvement from 2024 levels,” said CEO Ken Seipel.

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