Wed, Jun 11, 8:16 PM (33 days ago)
**Citi Trends, Inc. (CTRN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Net sales increased by 8.3% to $201.7 million in Q1 2025 from $186.3 million in Q1 2024, driven by a 9.9% increase in comparable store sales. - **Profit Margins:** Gross margin improved to 60.4% in Q1 2025 from 61.3% in Q1 2024 due to decreased shrink and freight expenses, offset by increased markdowns. - **Net Income:** Net income was $0.9 million in Q1 2025, compared to a net loss of $3.4 million in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $11.0 million in Q1 2025, an improvement from $19.6 million in Q1 2024. - **Earnings Changes:** Basic and diluted earnings per share were $0.11 in Q1 2025, compared to a loss of $0.42 in Q1 2024. **Key Metrics and Trends:** - **Inventory:** Inventory decreased to $109.9 million in Q1 2025 from $119.0 million in Q1 2024 due to strategic reductions in average in-store and pack-and-hold inventory. - **Capital Expenditures:** Capital expenditures were $2.1 million in Q1 2025, with plans for $20 million in fiscal 2025 for new stores and remodels. - **Share Repurchases:** $6.3 million was returned to shareholders through share repurchases in Q1 2025. - **Liquidity:** Cash and cash equivalents were $41.6 million at the end of Q1 2025, down from $58.2 million in Q1 2024. **Future Operations and Uncertainties:** - **Economic Conditions:** The company faces ongoing inflationary pressures, new tariff programs, and changes in consumer sentiment. - **Seasonality:** The business is seasonal, with higher sales in the first and fourth quarters. Weather patterns also influence sales. - **Capital Allocation:** The company prioritizes investments in growth opportunities and maintaining operations, with excess cash returned to shareholders through share repurchases. - **Lease Commitments:** Total lease commitments are $220.4 million, with $50.4 million due within 12 months. **Management Discussion:** - **Performance Measures:** Key metrics include comparable store sales growth, average sales per store, and store-level contribution. - **Strategic Focus:** The company aims to maintain liquidity, invest in growth, and return excess cash to shareholders. They monitor economic conditions, inventory risks, and consumer preferences closely. - **Risk Factors:** The company faces risks related to economic conditions, supply chain disruptions, competition, and regulatory changes.