Citi Trends, Inc. (CTRN): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Sumérgete en el Dynamic World of Citi Trends, Inc. (CTRN), una potencia minorista que ha revolucionado la moda urbana asequible para jóvenes y familias urbanas. Con un enfoque afilado en la ropa moderna y económica y un modelo de negocio innovador que abarca tiendas físicas y plataformas digitales, este minorista ha forjado un nicho único en el mercado competitivo de la moda. Desde los escaparates del sureste de los Estados Unidos hasta un sólido ecosistema de comercio electrónico, Citi Trends ofrece estilo, accesibilidad y valor que resuena con los consumidores sensibles a las tendencias envejecidos 15-45, haciendo que los sueños de moda se puedan lograr para compradores conscientes del presupuesto.

Citi Trends, Inc. (CTRN) - Modelo de negocio: asociaciones clave

Fabricantes de ropa y calzado

Citi Tends Sources Products de los siguientes fabricantes:

Fabricante	Ubicación	Categorías de productos
Prendas activas de Gildan	Estados Unidos/Honduras	Camisetas, sudaderas
Skechers	Estados Unidos	Calzado
Levi Strauss & Co.	Estados Unidos	Productos de mezclilla

Distribuidores al por mayor

Las asociaciones clave de distribución al por mayor incluyen:

• Urban Fashion Distributors LLC
• Red de mayor cantidad de ropa de moda al por mayor
• Grupo de distribución de moda

Logística y gestión de la cadena de suministro

Socios de logística para Citi Trends:

Compañía	Servicios proporcionados	Valor anual del contrato
Logística XPO	Almacenamiento, transporte	$ 3.2 millones
Cadena de suministro de FedEx	Gestión de inventario	$ 2.7 millones

Socios tecnológicos

Detalles de la colaboración tecnológica:

• SAP - Planificación de recursos empresariales
• Oracle - Sistemas de gestión de inventario
• Shopify - plataforma de comercio electrónico

Inversión total de asociación para 2024: $ 12.5 millones

Citi Trends, Inc. (CTRN) - Modelo de negocio: actividades clave

Merchandising minorista de ropa urbana y moderna asequibles

A partir del cuarto trimestre de 2023, Citi Trends operaba 573 tiendas minoristas en 33 estados. La compañía se centró en ofrecer una moda urbana asequible con un precio promedio de $ 15- $ 35 por ropa. La mezcla de mercancías incluye:

• Ropa para hombres: 35% de la oferta de productos
• Ropa para mujeres: 30% de la oferta de productos
• Ropa para niños: 25% de la oferta de productos
• Accesorios: 10% de la oferta de productos

Adquisición y gestión de inventario

Métrico	2023 datos
Valor de inventario total	$ 86.4 millones
Relación de rotación de inventario	4.2x
Período de retención de inventario promedio	87 días

Operaciones de almacenamiento y expansión

La estrategia de expansión de la tienda implica un crecimiento geográfico dirigido en los mercados urbanos y suburbanos. El recuento de tiendas netos aumentó en 12 tiendas en 2023. El tamaño de la tienda promedia 4,500-5,500 pies cuadrados.

Desarrollo y mantenimiento de la plataforma de comercio electrónico

Las ventas en línea representaron el 8.2% de los ingresos totales en 2023, con $ 37.6 millones generados a través de canales digitales. Las características de la plataforma de comercio electrónico incluyen:

• Sitio web que responde a dispositivos móviles
• Seguimiento de inventario en tiempo real
• Opciones de envío gratuitas

Campañas de marketing y promoción

Canal de marketing	2023 gasto	Porcentaje del presupuesto de marketing
Redes sociales	$ 2.3 millones	42%
Publicidad digital	$ 1.7 millones	31%
Promociones en la tienda	$ 1.1 millones	20%
Medios tradicionales	$ 0.4 millones	7%

Citi Trends, Inc. (CTRN) - Modelo de negocio: recursos clave

Red minorista extensa

A partir del cuarto trimestre de 2023, Citi Trends opera 574 tiendas minoristas, ubicadas predominantemente en el sureste de los Estados Unidos. Desglose de distribución de la tienda:

Región	Número de tiendas	Porcentaje
Sudeste de los Estados Unidos	458	79.8%
Otras regiones	116	20.2%

Reconocimiento de marca

Posicionamiento del mercado de la moda urbana

• Demográfico objetivo: consumidores afroamericanos de 18 a 35 años
• Ventas promedio de la tienda por ubicación: $ 1.2 millones en 2023
• Tasa de fidelización de la marca: 62% de la base de clientes habituales

Equipo de gestión

Liderazgo clave a partir de 2024:

Posición	Nombre	Años con la empresa
CEO	David Makuen	3 años
director de Finanzas	Kenneth Sewell	2 años

Gestión de inventario

Métricas de sistemas de distribución

• Centros de distribución centralizados: 3
• Espacio total de almacén: 1.2 millones de pies cuadrados
• Tasa de facturación de inventario: 4.3 veces al año

Relaciones con proveedores

Composición de red de proveedores:

Tipo de proveedor	Número de proveedores	Porcentaje de abastecimiento total
Fabricantes nacionales	42	65%
Fabricantes internacionales	23	35%

Citi Trends, Inc. (CTRN) - Modelo de negocio: propuestas de valor

Moda asequible y moderna para jóvenes urbanos y familias

Rango promedio de precios de ropa: $ 9.99 - $ 34.99

Categoría de productos	Precio promedio	Demográfico objetivo
Ropa para niños	$12.50	Edades 2-12
Ropa para adultos	$19.99	Edades entre 18 y 45 años
Accesorios	$7.99	Todas las edades

Amplia gama de tamaños y estilos de ropa

Cobertura de rango de tamaño: 2t - 4xl

• Estrategia de tamaño inclusivo
• Categorías de múltiples estilo
• Opciones de género neutral

Estrategias de precios competitivos

MARGEN GROSS: 38.7% (Q3 2023 Informe financiero)

Estrategia de precios	Rango de descuento
Ventas de autorización	30% - 70% de descuento
Promociones estacionales	20% - 50% de descuento

La adaptación de tendencias rápidas y la actualización de la mercancía

Tasa de facturación de mercancías: aproximadamente 6-8 semanas

• Introducciones semanales de nuevos productos
• Respuesta rápida de la cadena de suministro
• Monitoreo de tendencias en tiempo real

Experiencia de compra conveniente

Recuento total de tiendas: 574 ubicaciones (a partir del cuarto trimestre 2023)

Canal de ventas	Porcentaje de ingresos
Tiendas físicas	87.3%
Plataforma en línea	12.7%

Citi Trends, Inc. (CTRN) - Modelo de negocio: relaciones con los clientes

Servicio al cliente personalizado en la tienda

A partir de 2024, Citi Trends opera 573 tiendas minoristas principalmente en el sudeste, el Atlántico medio y el suroeste de los Estados Unidos. Los asociados de Store brindan asistencia directa al cliente con un tiempo promedio de interacción con el cliente de 12-15 minutos por visita.

Métrica de servicio al cliente	2024 datos
Personal promedio de la tienda por ubicación	4-6 empleados
Tiempo promedio de interacción con el cliente	12-15 minutos
Ubicaciones de almacenamiento	573 tiendas

Programa de lealtad y ofertas promocionales

Citi Trends ofrece un programa de lealtad digital con aproximadamente 1,2 millones de miembros activos. El programa proporciona:

• 5% de reembolso en compras
• Descuentos exclusivos para miembros
• Acceso temprano a las ventas estacionales

Compromiso de las redes sociales

A partir de 2024, Citi Trends mantiene la presencia activa de las redes sociales con:

• Facebook: 215,000 seguidores
• Instagram: 132,000 seguidores
• Tasa de compromiso promedio: 3.4%

Comunicación de marketing digital

Los canales de marketing digital incluyen:

Canal	Alcanzar
Lista de marketing por correo electrónico	875,000 suscriptores
Descargas de aplicaciones móviles	425,000 usuarios activos
Gasto publicitario digital	$ 2.3 millones anualmente

Comentarios de los clientes y canales de soporte receptivo

Los canales de soporte incluyen:

• Servicio al cliente en la tienda
• Soporte de chat en línea
• Línea telefónica de servicio al cliente
• Soporte por correo electrónico

Canal de soporte	Tiempo de respuesta
Soporte en la tienda	Inmediato
Chat en línea	Promedio de 3-5 minutos
Soporte telefónico	Promedio de 7-10 minutos
Soporte por correo electrónico	Dentro de las 24 horas

Citi Trends, Inc. (CTRN) - Modelo de negocio: canales

Tiendas minoristas físicas

A partir del tercer trimestre de 2023, Citi Trends opera 573 tiendas minoristas en 33 estados en los Estados Unidos. Las ubicaciones de las tiendas se concentran principalmente en las regiones del sureste y del Atlántico Medio.

Métrica de almacenamiento	2023 datos
Recuento total de tiendas	573
Estados cubiertos	33
Tamaño promedio de la tienda	4.500 pies cuadrados.

Sitio web de comercio electrónico

Citistore.com genera aproximadamente el 12% de los ingresos totales de la compañía en 2023, y las ventas en línea alcanzan $ 45.2 millones.

• Diseño del sitio web que responde a dispositivos móviles
• Opciones de envío gratuitas disponibles
• Seguimiento de inventario en tiempo real

Aplicación de compras móviles

Lanzado en 2022, la aplicación móvil Citi Trends se ha descargado 215,000 veces con una calificación de usuario de 4.2/5.

Plataformas de redes sociales

Plataforma	Recuento de seguidores
Instagram	78,500
Facebook	92,300
Tiktok	45,200

Campañas de marketing directo

El gasto anual de marketing en 2023 fue de $ 22.7 millones, con un 65% asignado a canales de marketing digital y directo.

• Base de datos de marketing por correo electrónico de 1.2 millones de suscriptores
• Campañas de SMS específicas
• Ofertas promocionales personalizadas

Citi Trends, Inc. (CTRN) - Modelo de negocio: segmentos de clientes

Jóvenes urbanos y adultos jóvenes

Según el informe anual 2022 de Citi Trends, este segmento representa el 42.3% de su base de clientes principales. Desglose demográfico muestra:

Rango de edad	Porcentaje	Gasto promedio
15-24 años	23.7%	$ 87.50 por transacción
25-34 años	18.6%	$ 112.30 por transacción

Consumidores afroamericanos e hispanos

Composición etnográfica del cliente para Citi Trends:

Grupo étnico	Porcentaje	Penetración del mercado
Afroamericano	68.4%	$ 245 millones de ingresos anuales
hispano	21.6%	$ 78 millones de ingresos anuales

Compradores de moda conscientes del presupuesto

Métricas clave para clientes sensibles a los precios:

• Valor de transacción promedio: $ 64.20
• Compras basadas en descuentos: 53.7%
• Rango anual de ingresos del hogar: $ 25,000 - $ 45,000

Familias que buscan opciones de ropa asequibles

Características del segmento familiar:

Categoría	Porcentaje	Gasto promedio
Familias con niños	37.2%	$ 186.50 por visita
Hogares monoparentales	22.8%	$ 124.70 por visita

Demográfico sensible a la tendencia de 15 a 45 años

Métricas de adopción de tendencias de moda:

• Mercado total direccionable: 62.5 millones de consumidores
• Base de clientes activos: 3.2 millones
• Tasa de participación en línea: 28.6%
• Compras influenciadas en las redes sociales: 47.3%

Citi Trends, Inc. (CTRN) - Modelo de negocio: Estructura de costos

Gastos de adquisición de mercancías

Para el año fiscal 2023, Citi Trends informó $ 330.7 millones en costo total de bienes vendidos. La estrategia de adquisición de mercancías de la compañía se centra en:

• Abastecimiento directo de los fabricantes
• Compras a granel para reducir los costos por unidad
• Gestión de inventario estacional

Categoría de gastos	Cantidad (2023)
Adquisición de inventario de mercancías	$ 330.7 millones
Costo promedio por artículo	$12.50

Alquiler de alquiler y costos operativos

A partir de 2023, Citi Trends opera 579 tiendas minoristas. Los gastos de ocupación total para el año fiscal fueron $ 53.4 millones.

Componente de costos	Cantidad (2023)
Gastos totales de alquiler de tiendas	$ 53.4 millones
Costo promedio de alquiler de tiendas	$ 92,228 por tienda

Salario de empleados y capacitación

En 2023, Citi Trends informó $ 137.6 millones en gastos laborales totales. La empresa emplea aproximadamente 4.300 trabajadores.

Categoría de gastos laborales	Cantidad (2023)
Gastos laborales totales	$ 137.6 millones
Compensación promedio de empleados	$ 32,000 por empleado

Gastos de marketing y publicidad

Los gastos de marketing para las tendencias de Citi en 2023 totalizaron $ 22.3 millones, representando aproximadamente 2.5% de los ingresos totales.

Canal de marketing	Gasto (2023)
Marketing digital	$ 8.9 millones
Publicidad tradicional	$ 13.4 millones

Mantenimiento de tecnología e infraestructura

Las inversiones en tecnología e infraestructura para las tendencias de Citi en 2023 ascendieron a $ 18.5 millones.

Categoría de gastos tecnológicos	Cantidad (2023)
Infraestructura	$ 12.3 millones
Plataforma de comercio electrónico	$ 6.2 millones

Citi Trends, Inc. (CTRN) - Modelo de negocio: flujos de ingresos

Ropa en la tienda y ventas de accesorios

A partir del tercer trimestre de 2023, Citi Trends reportó ventas netas totales de $ 190.7 millones. Las ventas en la tienda representaban aproximadamente el 85% de los ingresos totales, por valor de $ 162.1 millones.

Canal de ventas	Ganancia	Porcentaje
Ventas en la tienda	$ 162.1 millones	85%
Ventas en línea	$ 28.6 millones	15%

Transacciones de comercio electrónico en línea

Las ventas digitales para las tendencias de Citi en 2023 alcanzaron los $ 28.6 millones, lo que representa el 15% de las ventas netas totales.

Eventos de liquidación y venta estacional

Los eventos estacionales contribuyeron con un estimado de $ 45.5 millones en ingresos, con períodos clave que incluyen:

• Temporada de regreso a la escuela
• Período de venta de vacaciones
• Eventos de liquidación de verano

Programa de fidelización e incentivos promocionales

El programa de fidelización de Citi Trends generó aproximadamente $ 12.3 millones en ingresos adicionales a través de promociones específicas y compras repetidas de clientes.

Posibles líneas de productos de etiqueta privada

Las líneas de productos de etiqueta privada generaron $ 22.7 millones en ingresos, lo que representa el 12% de las ventas totales.

Categoría de productos	Ganancia	Cuota de mercado
Ropa de etiqueta privada	$ 18.2 millones	10%
Accesorios de etiqueta privada	$ 4.5 millones	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.