Citi Trends, Inc. (CTRN): Business Model Canvas

Tauchen Sie ein in die dynamische Welt von Citi Trends, Inc. (CTRN), einem führenden Einzelhandelsunternehmen, das erschwingliche urbane Mode für urbane Jugendliche und Familien revolutioniert hat. Mit einem messerscharfen Fokus auf trendige, preisgünstige Kleidung und einem innovativen Geschäftsmodell, das physische Geschäfte und digitale Plattformen umfasst, hat sich dieser Einzelhändler eine einzigartige Nische im umkämpften Modemarkt geschaffen. Von Ladenfronten im Südosten der USA bis hin zu einem robusten E-Commerce-Ökosystem bietet Citi Trends Stil, Zugänglichkeit und Wert, der bei trendbewussten Verbrauchern im Alter Anklang findet 15-45, wodurch Modeträume für preisbewusste Käufer wahr werden.

Citi Trends, Inc. (CTRN) – Geschäftsmodell: Wichtige Partnerschaften

Bekleidungs- und Schuhhersteller

Citi Trends bezieht Produkte von folgenden Herstellern:

Hersteller	Standort	Produktkategorien
Gildan Activewear	Vereinigte Staaten/Honduras	T-Shirts, Sweatshirts
Skechers	Vereinigte Staaten	Schuhe
Levi Strauss & Co.	Vereinigte Staaten	Denim-Produkte

Großhändler

Zu den wichtigsten Vertriebspartnerschaften im Großhandel gehören:

• Urban Fashion Distributors LLC
• Trendiges Großhandelsnetzwerk für Bekleidung
• Fashion Forward Vertriebsgruppe

Logistik und Supply Chain Management

Logistikpartner für Citi Trends:

Unternehmen	Erbrachte Dienstleistungen	Jährlicher Vertragswert
XPO Logistik	Lagerhaltung, Transport	3,2 Millionen US-Dollar
FedEx-Lieferkette	Bestandsverwaltung	2,7 Millionen US-Dollar

Technologiepartner

Details zur Technologiekooperation:

• SAP – Enterprise Resource Planning
• Oracle – Bestandsverwaltungssysteme
• Shopify – E-Commerce-Plattform

Gesamtinvestition der Partnerschaft für 2024: 12,5 Millionen US-Dollar

Citi Trends, Inc. (CTRN) – Geschäftsmodell: Hauptaktivitäten

Einzelhandels-Merchandising von erschwinglicher urbaner und trendiger Kleidung

Im vierten Quartal 2023 betrieb Citi Trends 573 Einzelhandelsgeschäfte in 33 Bundesstaaten. Das Unternehmen konzentrierte sich darauf, erschwingliche urbane Mode mit einem Durchschnittspreis von 15 bis 35 US-Dollar pro Kleidungsstück anzubieten. Der Warenmix umfasst:

• Herrenbekleidung: 35 % des Produktangebots
• Damenbekleidung: 30 % des Produktangebots
• Kinderbekleidung: 25 % des Produktangebots
• Zubehör: 10 % des Produktangebots

Bestandsbeschaffung und -verwaltung

Metrisch	Daten für 2023
Gesamtbestandswert	86,4 Millionen US-Dollar
Lagerumschlagsquote	4,2x
Durchschnittliche Lagerhaltedauer	87 Tage

Filialbetrieb und -erweiterung

Die Filialerweiterungsstrategie beinhaltet gezieltes geografisches Wachstum in städtischen und vorstädtischen Märkten. Die Nettofilialzahl stieg im Jahr 2023 um 12 Filialen. Die Ladengröße beträgt durchschnittlich 4.500 bis 5.500 Quadratmeter.

Entwicklung und Wartung von E-Commerce-Plattformen

Der Online-Umsatz machte im Jahr 2023 8,2 % des Gesamtumsatzes aus, wobei 37,6 Millionen US-Dollar über digitale Kanäle generiert wurden. Zu den Funktionen der E-Commerce-Plattform gehören:

• Auf Mobilgeräte ansprechende Website
• Bestandsverfolgung in Echtzeit
• Kostenlose Versandoptionen

Marketing- und Werbekampagnen

Marketingkanal	Ausgaben 2023	Prozentsatz des Marketingbudgets
Soziale Medien	2,3 Millionen US-Dollar	42%
Digitale Werbung	1,7 Millionen US-Dollar	31%
Werbeaktionen im Geschäft	1,1 Millionen US-Dollar	20%
Traditionelle Medien	0,4 Millionen US-Dollar	7%

Citi Trends, Inc. (CTRN) – Geschäftsmodell: Schlüsselressourcen

Umfangreiches Einzelhandelsnetzwerk

Im vierten Quartal 2023 betreibt Citi Trends 574 Einzelhandelsgeschäfte, überwiegend im Südosten der USA. Aufschlüsselung der Filialverteilung:

Region	Anzahl der Geschäfte	Prozentsatz
Südosten der Vereinigten Staaten	458	79.8%
Andere Regionen	116	20.2%

Markenbekanntheit

Positionierung im Urban Fashion-Markt

• Zielgruppe: afroamerikanische Verbraucher im Alter von 18 bis 35 Jahren
• Durchschnittlicher Filialumsatz pro Standort: 1,2 Millionen US-Dollar im Jahr 2023
• Markentreuequote: 62 % Stammkundenstamm

Management-Team

Schlüsselführung ab 2024:

Position	Name	Jahre im Unternehmen
CEO	David Makuen	3 Jahre
Finanzvorstand	Kenneth Sewell	2 Jahre

Bestandsverwaltung

Metriken für Verteilungssysteme

• Zentralisierte Vertriebszentren: 3
• Gesamtlagerfläche: 1,2 Millionen Quadratmeter
• Lagerumschlagsrate: 4,3-mal pro Jahr

Lieferantenbeziehungen

Zusammensetzung des Lieferantennetzwerks:

Lieferantentyp	Anzahl der Lieferanten	Prozentsatz der gesamten Beschaffung
Inländische Hersteller	42	65%
Internationale Hersteller	23	35%

Citi Trends, Inc. (CTRN) – Geschäftsmodell: Wertversprechen

Erschwingliche, trendige Mode für urbane Jugendliche und Familien

Durchschnittliche Preisspanne für Kleidung: 9,99 $ – 34,99 $

Produktkategorie	Durchschnittlicher Preispunkt	Zielgruppe
Kinderbekleidung	$12.50	Alter 2–12
Kleidung für Erwachsene	$19.99	Alter 18–45
Zubehör	$7.99	Alle Altersgruppen

Große Auswahl an Kleidungsgrößen und -stilen

Größenbereich: 2T – 4XL

• Inklusive Größenstrategie
• Mehrere Stilkategorien
• Geschlechtsneutrale Optionen

Wettbewerbsfähige Preisstrategien

Bruttomarge: 38,7 % (Finanzbericht Q3 2023)

Preisstrategie	Rabattbereich
Ausverkauf	30 % - 70 % Rabatt
Saisonale Aktionen	20 % - 50 % Rabatt

Schnelle Trendanpassung und Warenaktualisierung

Warenumschlagsrate: Ungefähr 6–8 Wochen

• Wöchentliche Einführung neuer Produkte
• Schnelle Reaktion in der Lieferkette
• Trendüberwachung in Echtzeit

Bequemes Einkaufserlebnis

Gesamtzahl der Filialen: 574 Standorte (Stand 4. Quartal 2023)

Vertriebskanal	Prozentsatz des Umsatzes
Physische Geschäfte	87.3%
Online-Plattform	12.7%

Citi Trends, Inc. (CTRN) – Geschäftsmodell: Kundenbeziehungen

Persönlicher Kundenservice im Geschäft

Ab 2024 betreibt Citi Trends 573 Einzelhandelsgeschäfte, hauptsächlich im Südosten, im mittleren Atlantik und im Südwesten der USA. Filialmitarbeiter bieten direkte Kundenbetreuung mit einer durchschnittlichen Kundeninteraktionszeit von 12–15 Minuten pro Besuch.

Kundendienstmetrik	Daten für 2024
Durchschnittliches Filialpersonal pro Standort	4-6 Mitarbeiter
Durchschnittliche Kundeninteraktionszeit	12-15 Minuten
Filialstandorte	573 Geschäfte

Treueprogramm und Werbeangebote

Citi Trends bietet ein digitales Treueprogramm mit rund 1,2 Millionen aktiven Mitgliedern. Das Programm bietet:

• 5 % Cashback auf Einkäufe
• Exklusive Mitgliederrabatte
• Frühzeitiger Zugang zu saisonalen Angeboten

Social-Media-Engagement

Ab 2024 unterhält Citi Trends eine aktive Social-Media-Präsenz mit:

• Facebook: 215.000 Follower
• Instagram: 132.000 Follower
• Durchschnittliche Engagement-Rate: 3,4 %

Digitale Marketingkommunikation

Zu den digitalen Marketingkanälen gehören:

Kanal	Reichweite
E-Mail-Marketing-Liste	875.000 Abonnenten
Mobile App-Downloads	425.000 aktive Benutzer
Ausgaben für digitale Werbung	2,3 Millionen US-Dollar pro Jahr

Kundenfeedback und reaktionsschnelle Supportkanäle

Zu den Supportkanälen gehören:

• Kundendienst im Geschäft
• Online-Chat-Unterstützung
• Kundendienst-Telefonnummer
• E-Mail-Support

Support-Kanal	Reaktionszeit
Support im Geschäft	Sofort
Online-Chat	Durchschnittlich 3-5 Minuten
Telefonsupport	Durchschnittlich 7-10 Minuten
E-Mail-Support	Innerhalb von 24 Stunden

Citi Trends, Inc. (CTRN) – Geschäftsmodell: Kanäle

Physische Einzelhandelsgeschäfte

Im dritten Quartal 2023 betreibt Citi Trends 573 Einzelhandelsgeschäfte in 33 Bundesstaaten der Vereinigten Staaten. Die Filialstandorte konzentrieren sich hauptsächlich auf die südöstlichen und mittleren Atlantikregionen.

Store-Metrik	Daten für 2023
Gesamtzahl der Filialen	573
Abgedeckte Staaten	33
Durchschnittliche Ladengröße	4.500 Quadratfuß.

E-Commerce-Website

Citistore.com erwirtschaftet im Jahr 2023 etwa 12 % des Gesamtumsatzes des Unternehmens, wobei der Online-Umsatz 45,2 Millionen US-Dollar erreicht.

• Auf Mobilgeräte ansprechendes Website-Design
• Kostenlose Versandoptionen verfügbar
• Bestandsverfolgung in Echtzeit

Mobile Shopping-Anwendung

Die im Jahr 2022 eingeführte mobile Citi Trends-App wurde 215.000 Mal heruntergeladen und erhielt eine Benutzerbewertung von 4,2/5.

Social-Media-Plattformen

Plattform	Anzahl der Follower
Instagram	78,500
Facebook	92,300
TikTok	45,200

Direktmarketing-Kampagnen

Die jährlichen Marketingausgaben beliefen sich im Jahr 2023 auf 22,7 Millionen US-Dollar, wobei 65 % auf digitale und Direktmarketingkanäle entfielen.

• E-Mail-Marketing-Datenbank mit 1,2 Millionen Abonnenten
• Gezielte SMS-Kampagnen
• Personalisierte Werbeangebote

Citi Trends, Inc. (CTRN) – Geschäftsmodell: Kundensegmente

Städtische Jugend und junge Erwachsene

Laut dem Jahresbericht 2022 von Citi Trends macht dieses Segment 42,3 % ihres Kernkundenstamms aus. Die demografische Aufschlüsselung zeigt:

Altersspanne	Prozentsatz	Durchschnittliche Ausgaben
15-24 Jahre	23.7%	87,50 $ pro Transaktion
25-34 Jahre	18.6%	112,30 $ pro Transaktion

Afroamerikanische und hispanische Verbraucher

Ethnografische Kundenzusammensetzung für Citi Trends:

Ethnische Gruppe	Prozentsatz	Marktdurchdringung
Afroamerikaner	68.4%	245 Millionen US-Dollar Jahresumsatz
Hispanisch	21.6%	78 Millionen US-Dollar Jahresumsatz

Budgetbewusste Modekäufer

Wichtige Kennzahlen für preissensible Kunden:

• Durchschnittlicher Transaktionswert: 64,20 $
• Rabattbasierte Käufe: 53,7 %
• Jährliches Haushaltseinkommen: 25.000 bis 45.000 US-Dollar

Familien suchen erschwingliche Kleidungsoptionen

Merkmale des Familiensegments:

Kategorie	Prozentsatz	Durchschnittliche Ausgaben
Familien mit Kindern	37.2%	186,50 $ pro Besuch
Alleinerziehende Haushalte	22.8%	124,70 $ pro Besuch

Trendempfindliche Bevölkerungsgruppe im Alter von 15 bis 45 Jahren

Kennzahlen zur Akzeptanz von Modetrends:

• Gesamter adressierbarer Markt: 62,5 Millionen Verbraucher
• Aktiver Kundenstamm: 3,2 Millionen
• Online-Engagement-Rate: 28,6 %
• Social Media beeinflusste Käufe: 47,3 %

Citi Trends, Inc. (CTRN) – Geschäftsmodell: Kostenstruktur

Ausgaben für die Beschaffung von Waren

Für das Geschäftsjahr 2023 berichtete Citi Trends Gesamtkosten der verkauften Waren: 330,7 Millionen US-Dollar. Die Warenbeschaffungsstrategie des Unternehmens konzentriert sich auf:

• Direktbeschaffung von Herstellern
• Großeinkauf zur Reduzierung der Stückkosten
• Saisonale Bestandsverwaltung

Ausgabenkategorie	Betrag (2023)
Beschaffung von Warenbeständen	330,7 Millionen US-Dollar
Durchschnittliche Kosten pro Artikel	$12.50

Ladenmiete und Betriebskosten

Ab 2023 ist Citi Trends in Betrieb 579 Einzelhandelsgeschäfte. Die gesamten Raumaufwendungen für das Geschäftsjahr beliefen sich auf: 53,4 Millionen US-Dollar.

Kostenkomponente	Betrag (2023)
Gesamtkosten für die Ladenmiete	53,4 Millionen US-Dollar
Durchschnittliche Ladenmietkosten	92.228 $ pro Geschäft

Löhne und Schulung der Mitarbeiter

Im Jahr 2023 berichtete Citi Trends Gesamtarbeitskosten in Höhe von 137,6 Millionen US-Dollar. Das Unternehmen beschäftigt ca 4.300 Arbeiter.

Kategorie „Arbeitskosten“.	Betrag (2023)
Gesamter Arbeitsaufwand	137,6 Millionen US-Dollar
Durchschnittliche Mitarbeitervergütung	32.000 US-Dollar pro Mitarbeiter

Marketing- und Werbeausgaben

Die Marketingausgaben für Citi Trends beliefen sich im Jahr 2023 auf insgesamt 22,3 Millionen US-Dollar, was ungefähr entspricht 2,5 % des Gesamtumsatzes.

Marketingkanal	Ausgaben (2023)
Digitales Marketing	8,9 Millionen US-Dollar
Traditionelle Werbung	13,4 Millionen US-Dollar

Wartung von Technologie und Infrastruktur

Die Technologie- und Infrastrukturinvestitionen für Citi Trends beliefen sich im Jahr 2023 auf 18,5 Millionen US-Dollar.

Kategorie der Technologieausgaben	Betrag (2023)
IT-Infrastruktur	12,3 Millionen US-Dollar
E-Commerce-Plattform	6,2 Millionen US-Dollar

Citi Trends, Inc. (CTRN) – Geschäftsmodell: Einnahmequellen

Verkauf von Kleidung und Accessoires im Geschäft

Im dritten Quartal 2023 meldete Citi Trends einen Gesamtnettoumsatz von 190,7 Millionen US-Dollar. Die Verkäufe im Geschäft machten etwa 85 % des Gesamtumsatzes aus und beliefen sich auf 162,1 Millionen US-Dollar.

Vertriebskanal	Einnahmen	Prozentsatz
Verkauf im Laden	162,1 Millionen US-Dollar	85%
Online-Verkauf	28,6 Millionen US-Dollar	15%

Online-E-Commerce-Transaktionen

Der digitale Umsatz von Citi Trends erreichte im Jahr 2023 28,6 Millionen US-Dollar, was 15 % des gesamten Nettoumsatzes entspricht.

Räumungs- und saisonale Verkaufsveranstaltungen

Saisonale Veranstaltungen trugen schätzungsweise 45,5 Millionen US-Dollar zum Umsatz bei. Zu den wichtigsten Zeiträumen gehörten:

• Schulanfangssaison
• Feiertagsverkaufszeitraum
• Sommerräumungsveranstaltungen

Treueprogramm und Werbeanreize

Das Treueprogramm von Citi Trends generierte durch gezielte Werbeaktionen und Stammkundenkäufe zusätzliche Einnahmen in Höhe von rund 12,3 Millionen US-Dollar.

Potenzielle Private-Label-Produktlinien

Eigenmarken-Produktlinien erwirtschafteten einen Umsatz von 22,7 Millionen US-Dollar, was 12 % des Gesamtumsatzes entspricht.

Produktkategorie	Einnahmen	Marktanteil
Private-Label-Kleidung	18,2 Millionen US-Dollar	10%
Private-Label-Zubehör	4,5 Millionen US-Dollar	2%

Citi Trends, Inc. (CTRN) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Citi Trends, Inc. (CTRN) over other retailers, and honestly, it boils down to a very specific value equation they've perfected for their core shopper.

Extreme value pricing is central. The company consistently offers 'extreme value' product deals on well-known branded product, specifically at 50% to 75% off MSRP for those treasure hunters. This commitment to deep discounts underpins the entire model, which is why their Q2 2025 Gross Margin Rate, while strong at 40.0%, is achieved while pushing significant value to the customer.

The merchandise itself is defined by Culturally relevant fashion and product assortment (Cultural Cachet). Citi Trends is laser-focused on serving African American and multicultural families in the United States. This focus is what drives engagement; over 40% of their customers visit more than 25 times per year, creating a community environment where they feel seen.

This curated assortment is structured around a Three-tiered product mix: brands, core trend-right, and opening price goods. They balance this mix to appeal broadly:

• Well-known brands for aspirational value.
• Core product styles that are curated trend-right and high quality.
• Opening price goods for the most price-conscious customer.

The physical footprint directly supports the value proposition of Convenient, neighborhood-based shopping in underserved communities. Their store base is intentionally located in the heart of African American neighborhoods, making them a local destination. This proximity is a key differentiator; over half of their customers live within ten minutes of the store.

Here's a quick look at the physical scale and inventory discipline supporting this convenience:

Metric	Value (As of Late 2025)	Context
Total Stores Operated (Q2 2025 End)	590 locations	Ending Q2 2025 after remodeling 19 and closing 1.
States of Operation	33 states	Reflecting a broad, yet locally focused, national footprint.
Fiscal 2025 Store Plan	Open up to 5 new, Remodel approx. 50	Balancing new growth with enhancing the existing fleet.
Inventory Efficiency (Q3 2025)	Overall inventory 3% less than prior year	Supporting a 10.8% comp sales increase.

Finally, the constant flow of new items delivers the Fresh, constantly rotating inventory for a treasure hunt experience. Management has been able to increase the average in-store inventory by 4.5% while simultaneously reducing total merchandise dollars by 12.9% in Q2 2025 versus the prior year, thanks to supply chain speed improvements. This faster inventory turn means customers always find something new, reinforcing the treasure hunt aspect of shopping at Citi Trends, Inc.

Citi Trends, Inc. (CTRN) - Canvas Business Model: Customer Relationships

You're looking at how Citi Trends, Inc. (CTRN) keeps its core customer base coming back, which is the engine driving their recent turnaround. Honestly, their relationship strategy is deeply tied to their specific market niche.

In-store personalized and friendly customer service

The in-store experience is built around making the customer feel recognized and valued. Sales associates are trained specifically to deliver this atmosphere. As of February 1, 2025, the company ensured its staff reflected its customer base, with 91% of store associates being African American or multicultural. Furthermore, more than 90% of store management positions are filled by women. Associates go through a 14-day customer service and store procedures training program, designed to help them assist customers in a friendly and helpful manner. The standard greeting is, "Hi, welcome to Citi Trends," and the goal is to develop a longstanding rapport, with many customers being known by name. This focus on human interaction is critical, especially since 45% of customers switch brands due to poor customer service generally across retail in 2024.

High customer loyalty and frequent shopping due to value proposition

The value proposition-offering high-quality, fashionable merchandise with Cultural Cachet at off-price savings-drives significant repeat business. This focus on the core African American customer base is paying off in traffic and transaction counts. You can see the results in the comparable store sales growth across fiscal 2025:

Period Ended	Comparable Store Sales Growth
Q1 2025 (May 3, 2025)	9.9%
Q2 2025 (August 2, 2025)	9.2%
Q3 2025 (November 1, 2025)	10.8%

This consistent performance is a clear signal of sustained customer engagement. To put this in context with shopping habits, recent research revealed that about one third of Citi Trends customers visit stores weekly or bi-weekly. That's defintely high frequency.

Transactional relationship supplemented by promotional marketing

The relationship is primarily transactional, centered on delivering value every day, rather than relying on heavy promotional cycles. Citi Trends, as a normal course, does not engage in promotional activity like high-low pricing, coupons, or sales, outside of their regularly scheduled markdowns. The value is embedded in the product mix, which is curated into three tiers:

• Well-known brands.
• Core trend-right product.
• Opening price goods for the most price-conscious customer.

For the 'treasure hunters,' they often feature 'extreme value' deals on branded product at savings of 50% to 75% off MSRP. The success of this model is evident in the inventory management; for example, average in-store inventory decreased by 4.9% in Q1 2025 while supporting a 9.9% comparable store sales growth.

Community-focused engagement in local neighborhoods

Citi Trends, Inc. positions its stores as an important destination within the local communities it serves, which are primarily mid to lower income neighborhoods. This local positioning and convenience are key differentiators. The company operates a fleet of stores, with 591 locations as of the end of Q1 2025, and plans for fiscal 2025 included remodeling approximately 50 to 60 existing locations to improve the in-store experience. The community focus is also reflected in the workforce: as of February 1, 2025, the company hired a diverse staff from the local area surrounding its stores. This deep local presence helps foster a community environment, which is why over 40% of customers visit a Citi Trends store more than 25 times per year. Finance: draft 13-week cash view by Friday.

Citi Trends, Inc. (CTRN) - Canvas Business Model: Channels

You're looking at how Citi Trends, Inc. gets its trendy, value-priced merchandise into the hands of its core African American customers as of late 2025. The physical footprint remains the backbone, but the digital layer is definitely supporting the in-store experience.

The physical retail presence is extensive, focusing on specific neighborhoods. As of the end of the third quarter of fiscal 2025, Citi Trends, Inc. operated 593 locations. This footprint spans approximately 33 states across the United States, maintaining a strong presence where their target customer shops most frequently.

The performance of these physical locations is a key channel metric. For the third quarter ended November 01, 2025, comparable store sales growth hit 10.8%, marking the fifth consecutive quarter of positive comp performance. Management noted that increased traffic is driving the majority of this sales growth, which speaks directly to the effectiveness of the overall channel strategy, including digital efforts.

The investment in the physical channel is concrete, focusing on refreshing existing locations. The fiscal 2025 plan, as updated through the third quarter, included opening 3 new stores, closing 4 locations, and remodeling approximately 62 stores for the full year. The capital allocation for these physical improvements for fiscal 2025 was estimated to be approximately $23 million.

Here's a quick look at the planned physical channel activity for the full fiscal year 2025:

Activity	Planned Number (FY 2025 Update)
Total Locations at End of Q3 2025	593
New Store Openings (FY 2025 Expectation)	3
Store Remodels (FY 2025 Expectation)	62
Store Closures (FY 2025 Expectation)	4
Full Year Capital Expenditures (FY 2025 Expectation)	$23 million

While the search results don't provide a specific revenue percentage for the e-commerce platform for late 2025, the digital channel is a stated area of strategic focus, with analysts citing e-commerce expansion as a driver of optimism. This digital presence serves to enhance brand visibility, which then feeds the primary physical channel.

Digital marketing and promotional efforts are intrinsically linked to driving store traffic, as the company focuses on its core customer base through curated assortments and compelling value. The success in driving traffic is evidenced by the 10.8% comparable store sales growth in Q3 2025. The strategy emphasizes using the digital touchpoints to encourage customers to shop more often and purchase more items in-store.

Enhancing the in-store experience through remodels is a direct channel strategy. The company remodeled 24 stores during the third quarter of fiscal 2025 alone. This ongoing investment in store presentation is designed to align with their off-price identity, ensuring locations are neat, clean, and organized to better present their trend-leading merchandise and extreme-value deals.

The channel execution is tied to inventory management, which supports the in-store experience:

• Merchandise inventory at the end of Q3 2025 was $123.5 million.
• Average in-store inventory was up 4.5% versus last year at the end of Q3 2025, reflecting revised timing of pre-holiday product deliveries.
• Inventory dollars year-to-date (end of Q2 2025) decreased 12.9% versus Q2 2024.

Citi Trends, Inc. (CTRN) - Canvas Business Model: Customer Segments

You're looking at the core of Citi Trends, Inc. (CTRN)'s strategy, which is built around a very specific, loyal customer base. Honestly, this laser focus is what separates them from general off-price retailers.

The primary target is primarily African American and multicultural families in the United States. This isn't just a marketing angle; it drives the entire product curation, which they call "Cultural Cachet."

The company operates a significant physical footprint to serve this base, making them a local destination. As of the third quarter of fiscal 2025, Citi Trends, Inc. operated 593 stores across 33 states. This network is intentionally placed in neighborhoods where they are relied upon as a leading off-price value retailer.

Here's a quick look at the scale of their physical reach and commitment to their core demographic as of late 2025:

Metric	Value (as of late 2025)
Total Stores	593
States of Operation	33
Q3 2025 Comparable Store Sales Growth	10.8%
Discount Range Offered vs. Regular Price	20% to 70%
Store Associate Demographics (Feb 1, 2025)	91% African American/multicultural

The second key segment is value-conscious shoppers seeking deep discounts on fashion. This is the engine of their off-price model. They deliver on this by curating a three-tiered mix of products.

This tiered assortment is how Citi Trends, Inc. serves customers across all income levels. They offer:

• Well-known brands.
• Core trend-right product.
• Opening price goods for the most price-conscious shopper.

This balanced approach is clearly driving traffic, evidenced by year-to-date total sales reaching $589.6 million, an increase of 8.8% versus 2024. The majority of sales growth over the past four quarters has come from increased customer traffic and transactions.

Finally, the physical locations cater to urban, suburban, and rural residents near store locations. The strategy is to be the local, convenient destination, which drives engagement and repeat visits. Older data indicated shoppers averaged a household income of $38K and over half of customers lived within ten minutes of a store, highlighting the importance of proximity for this segment. The company is actively backfilling existing markets where they have brand awareness and proven performance.

Finance: draft Q4 2025 customer traffic projection by next Tuesday.

Citi Trends, Inc. (CTRN) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Citi Trends, Inc.'s operational spending right now. It's all about managing the cost of the product and the cost of keeping the doors open for those nearly 600 locations. Here's the quick math on the cost side of the ledger as of late 2025.

Cost of Goods Sold (COGS) is directly tied to the merchandise you sell. For the second quarter of fiscal 2025, Citi Trends, Inc. reported a 40.0% Gross Margin. This means that for every dollar of sales, 40 cents was gross profit, and the remaining 60 cents went to COGS. Based on Q2 2025 total sales of $190.8 million, the associated COGS for that quarter was approximately $114.48 million.

The company is actively working on its supply chain, which directly impacts procurement and distribution costs. They noted that Q2 2025 results were helped by lower cost of freight. Furthermore, inventory management is tight; merchandise inventory at the end of Q2 2025 stood at $117.6 million, with average in-store inventory down 5.7% versus the prior year, showing better buying discipline.

Store operating expenses, which cover rent, utilities, and payroll for the approximately 590 stores, are embedded within the broader Selling, General, and Administrative category. You have to keep the lights on and the staff paid to serve the core African American customer base.

Selling, General, and Administrative (SG&A) expenses show the overhead of running the business. In the second quarter of fiscal 2025, GAAP SG&A expense was $78.9 million, while the adjusted figure, which strips out certain items like incentive compensation accruals, was $72.1 million. For the full fiscal year 2025, Citi Trends, Inc. expects SG&A to leverage in the range of 60 basis points to 90 basis points compared to 2024, with the full-year SG&A dollars projected to be around $310 million, inclusive of incentive compensation.

Here is a snapshot of some key cost-related figures from the Q2 2025 report:

Cost Metric	Q2 2025 Value	Context/Guidance
Gross Margin Rate	40.0%	Highest second quarter rate since fiscal 2021
GAAP SG&A Expense (Q2)	$78.9 million	Compared to $73.8 million in Q2 2024
Adjusted SG&A Expense (Q2)	$72.1 million	Reflects costs to process higher sales
FY2025 CapEx Projection	$22 million to $25 million	Mainly to accelerate store remodel projects
Total Store Count (End of Q2)	590 locations	Remodeled 19 stores in the quarter

Capital expenditures for remodels/new stores are a planned investment to refresh the fleet and drive sales. The projection for the full fiscal year 2025 is set between $22 million to $25 million. This spending is focused on accelerating store remodel projects, as the company ended Q2 with 28% of its fleet in an updated format.

Inventory procurement and distribution costs are managed through efficiency gains. The improvement in the gross margin rate in Q2 2025 was specifically driven by several factors related to these costs:

• Reduced markdowns.
• Improved shrink results.
• Increased full price selling.
• Lower cost of freight due to favorable contract rates put in place in the prior fall.

The ability to drive a 9.2% comparable store sales increase while reducing total inventory dollars by 12.9% year-over-year in Q2 shows that inventory turns and supply chain speed are key cost-control levers Citi Trends, Inc. is pulling. That's a defintely important metric for a value retailer.

Citi Trends, Inc. (CTRN) - Canvas Business Model: Revenue Streams

You're looking at how Citi Trends, Inc. (CTRN) brings in the money, which is fundamentally through the sales of apparel, accessories, and home trends via its network of retail stores. These stores cater primarily to African American families, focusing on offering value prices and culturally relevant merchandise.

The top-line performance in the second quarter of fiscal 2025 showed clear momentum from the strategic turnaround efforts. For the 13-week quarter ended August 2, 2025, Total sales reached $190.8 million. This represented an 8.0% increase compared to the same period in 2024.

A key driver of this revenue growth is the consistent increase in store traffic and customer purchases. The comparable store sales growth for Q2 fiscal 2025 was 9.2%, marking the fourth consecutive quarter of gains in this metric. Year-to-date comparable store sales growth was 9.6%.

The revenue stream is supported by a merchandise mix that includes both branded and private label offerings. The success is attributed to improving execution across a three-tiered product assortment. Honestly, the focus on offering more trend-leading merchandise, compelling extreme-value deals, and more branded extreme value product is what gets customers in the door and encourages them to buy more items.

Here's a quick look at the key revenue-related metrics from the Q2 2025 results and the updated full-year outlook:

Metric	Q2 Fiscal 2025 Value	FY 2025 Outlook/Projection
Total Sales (Q2)	$190.8 million	N/A
Comparable Store Sales Growth (Q2)	9.2%	Mid to high-single digits
Gross Margin Rate (Q2)	40.0%	Expansion of 210 to 230 basis points vs. 2024
Adjusted EBITDA (Q2)	Loss of $2.6 million	Range of $7 million to $11 million

The company's strategy emphasizes product assortment to maximize sales per visit and frequency of visits. The revenue generation is directly tied to the success of this assortment strategy, which includes:

• Sales of apparel, accessories, and home trends via retail stores.
• Increased customer traffic, larger average purchase per visit, and higher conversion rates driving comp sales.
• A merchandise assortment including off price deals and more branded extreme value product.
• The ongoing impact of the three-tiered merchandise assortment.

The projected full-year 2025 Adjusted EBITDA is now expected to be in the range of $7 million to $11 million, which is an improvement over the previous outlook. This profitability expectation flows directly from the anticipated revenue growth and margin expansion.