Citi Trends, Inc. (NASDAQ: CTRN) is a well-known off-price value retailer in the United States, focusing on providing affordable apparel, accessories, and home products primarily to African American families. The company operates in a competitive retail market, with rivals like Ross Stores and TJX Companies. Despite the competition, Citi Trends aims to deliver value through its diverse product offerings.
On March 18, 2025, CTRN reported an earnings per share (EPS) of -$1.54, which was significantly below the estimated -$0.15. This indicates a challenging financial period for the company. Despite the negative EPS, Citi Trends generated a revenue of approximately $211.17 million, surpassing the estimated $195.63 million. This revenue growth suggests strong sales performance, even amidst financial difficulties.
During the Q4 2024 earnings call, key figures like CEO Ken Seipel and CFO Heather Plutino discussed the company's financial performance and strategic direction. Analysts such as Jeremy Hamblin and Michael Baker participated, providing insights into the company's future. The call highlighted Citi Trends' commitment to maintaining its market position despite the financial challenges.
Citi Trends' financial metrics reveal a complex picture. The company has a negative P/E ratio of -7.28, indicating negative earnings. However, the price-to-sales ratio of 0.25 suggests the stock is valued at a quarter of its sales per share, which might attract value-focused investors. The enterprise value to sales ratio of 0.50 further reflects the company's valuation relative to its sales.
The company's financial health is mixed. The debt-to-equity ratio of 1.73 shows a higher level of debt compared to equity, which could be a concern for investors. However, the current ratio of 1.15 indicates a reasonable level of short-term liquidity, suggesting that Citi Trends can meet its short-term obligations. Despite the challenges, the company remains focused on delivering value to its customers.
