SAVANNAH, Ga. - Citi Trends, Inc. (NASDAQ: CTRN), a prominent off-price retailer with a market capitalization of $178 million, announced significant board changes and a positive outlook for the first quarter of 2025. According to InvestingPro analysis, the company’s stock has shown considerable volatility, with a beta of 2.3, reflecting higher market sensitivity than average. Effective April 2, Ken Seipel, currently CEO and board member, will take on the additional role of Chairman of the Board. David Heath has been appointed as Lead Independent Director, also effective April 2.
The company expressed gratitude to outgoing Chairman Peter Sachse, who retires effective April 2, after contributing to the firm since 2019 in various roles. Jonathan Duskin, the Lead Independent Director and Chair of the Finance and Audit Committees, is also retiring but will serve as a consultant until September 25, 2025. The leadership transition comes as the company faces financial challenges, with InvestingPro data showing negative EBITDA of -$13.9 million in the last twelve months and a debt-to-equity ratio of 1.95.
In a strategic move, Citi Trends will welcome Wesley Calvert and Pamela Edwards to its Board, aligning with an amended cooperation agreement with Fund 1 Investments, LLC. Calvert is set to chair the Finance Committee, while Edwards will lead the Audit Committee. This reshuffle aims to enhance operational effectiveness and long-term strategy. The company maintains a current ratio of 1.11, indicating tight but manageable liquidity. Get deeper insights into Citi Trends’ financial health and access 8 additional key ProTips with InvestingPro.
The company also forecasts mid to high-single-digit growth in comparable store sales for Q1 2025 compared to the same period last year. This positive trajectory is attributed to increased customer traffic and basket size, suggesting strong market share gains driven by effective product and service strategies.
Citi Trends operates 591 stores across 33 states, serving primarily African American families with apparel, accessories, and home trends. The information in this article is based on a press release statement.
In other recent news, Citi Trends reported mixed results for the fourth quarter of 2025. The company experienced a significant earnings per share (EPS) miss, recording -1.71 against a forecast of 0.18, which was a negative surprise of 1,050%. Despite this, revenue slightly exceeded expectations at $211.17 million, compared to the forecasted $209.19 million. Analysts from Craig-Hallum and DA Davidson have maintained a positive outlook on Citi Trends, with the former adjusting the price target to $32 while keeping a Buy rating, and the latter setting a $29 price target with a reiterated Buy rating.
Citi Trends has seen a 6.4% growth in same-store sales, which is noteworthy as it contrasts with the trend of weakening sales in the retail sector post-holiday season. The company is also focusing on strategic initiatives, such as remodeling stores and optimizing inventory management, to improve future performance. DA Davidson highlighted Citi Trends as a special situation name in the early stages of a turnaround, fueled by management changes and strategic initiatives. Looking ahead, Citi Trends expects low to mid-single-digit comparable sales growth and aims for a full-year EBITDA target of $5-9 million.
The company’s strategy includes expanding its product offerings and leveraging its off-price business model, which has resonated well with customers. Citi Trends plans to open up to five new stores and remodel approximately 50 locations in 2025. Despite the challenges, the company remains optimistic about its strategic improvements and growth prospects.
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