Citi Trends, Inc. (CTRN): Business Model Canvas [Jan-2025 Mis à jour]

Plongez dans le monde dynamique de Citi Trends, Inc. (CTRN), une puissance de vente au détail qui a révolutionné la mode urbaine abordable pour les jeunes et les familles urbaines. Avec un accent accéléré sur le rasoir sur les vêtements à la mode et pour le budget et un modèle commercial innovant qui s'étend sur les magasins physiques et les plateformes numériques, ce détaillant a creusé un créneau unique sur le marché de la mode compétitive. Du sud-est des magasins américains à un écosystème de commerce électronique robuste, Citi Trends offre un style, une accessibilité et une valeur qui résonne avec les consommateurs sensibles aux tendances âgés 15-45, faire des rêves de mode réalisables pour les acheteurs soucieux du budget.

Citi Trends, Inc. (CTRN) - Modèle commercial: partenariats clés

Fabricants de vêtements et de chaussures

Citi Trends s'approvisionne des produits des fabricants suivants:

Fabricant	Emplacement	Catégories de produits
Gildan Swear	États-Unis / Honduras	T-shirts, pulls molletonnés
Skechers	États-Unis	Chaussure
Levi Strauss & Co.	États-Unis	Produits en jean

Distributeurs en gros

Les principaux partenariats de distribution en gros comprennent:

• Urban Fashion Distributeurs LLC
• Réseau de gros vêtements à la mode
• Groupe de distribution de mode

Gestion de la logistique et de la chaîne d'approvisionnement

Partenaires logistiques pour les tendances Citi:

Entreprise	Services fournis	Valeur du contrat annuel
Xpo logistique	Entreposage, transport	3,2 millions de dollars
Chaîne d'approvisionnement FedEx	Gestion des stocks	2,7 millions de dollars

Partenaires technologiques

Détails de la collaboration technologique:

• SAP - Planification des ressources d'entreprise
• Oracle - Systèmes de gestion des stocks
• Shopify - Plateforme de commerce électronique

Investissement total de partenariat pour 2024: 12,5 millions de dollars

Citi Trends, Inc. (CTRN) - Modèle d'entreprise: Activités clés

Merchandisage au détail de vêtements urbains et à la mode abordables

Au quatrième trimestre 2023, Citi Trends a exploité 573 magasins de détail dans 33 États. L'entreprise s'est concentrée sur l'offre de mode urbaine abordable avec un prix moyen de 15 $ à 35 $ par vêtements. Le mélange de marchandises comprend:

• Appareils pour hommes: 35% de l'offre de produits
• Appareils pour femmes: 30% de l'offre de produits
• Appareils pour enfants: 25% de l'offre de produits
• Accessoires: 10% de l'offre de produits

Inventaire l'approvisionnement et la gestion

Métrique	2023 données
Valeur d'inventaire total	86,4 millions de dollars
Ratio de rotation des stocks	4.2x
Période de rétention des stocks moyens	87 jours

Stockage des opérations et de l'expansion

La stratégie d'expansion des magasins implique une croissance géographique ciblée sur les marchés urbains et suburbains. Le nombre de magasins nets a augmenté de 12 magasins en 2023. La taille du magasin est en moyenne de 4 500 à 5 500 pieds carrés.

Développement et maintenance de la plate-forme de commerce électronique

Les ventes en ligne représentaient 8,2% des revenus totaux en 2023, avec 37,6 millions de dollars générés par le biais de canaux numériques. Les fonctionnalités de plate-forme de commerce électronique comprennent:

• Site Web sensible au mobile
• Suivi des stocks en temps réel
• Options de livraison gratuites

Campagnes marketing et promotionnelles

Canal de marketing	2023 dépenses	Pourcentage du budget marketing
Réseaux sociaux	2,3 millions de dollars	42%
Publicité numérique	1,7 million de dollars	31%
Promotions en magasin	1,1 million de dollars	20%
Médias traditionnels	0,4 million de dollars	7%

Citi Trends, Inc. (CTRN) - Modèle d'entreprise: Ressources clés

Réseau de vente au détail

Depuis le quatrième trimestre 2023, Citi Trends exploite 574 magasins de détail, principalement situés dans le sud-est des États-Unis. Répartition de la distribution des magasins:

Région	Nombre de magasins	Pourcentage
Sud-est des États-Unis	458	79.8%
Autres régions	116	20.2%

Reconnaissance de la marque

Positionnement du marché de la mode urbaine

• Target démographique: consommateurs afro-américains âgés de 18 à 35 ans
• Ventes moyennes des magasins par emplacement: 1,2 million de dollars en 2023
• Taux de fidélité de la marque: 62% de clientèle répétée

Équipe de direction

Leadership clé en 2024:

Position	Nom	Années en entreprise
PDG	David Makuen	3 ans
Directeur financier	Kenneth Sewell	2 ans

Gestion des stocks

Métriques des systèmes de distribution

• Centres de distribution centralisés: 3
• Espace total d'entrepôt: 1,2 million de pieds carrés
• Taux de rotation des stocks: 4,3 fois par an

Relations avec les fournisseurs

Composition du réseau des fournisseurs:

Type de fournisseur	Nombre de fournisseurs	Pourcentage de l'approvisionnement total
Fabricants nationaux	42	65%
Fabricants internationaux	23	35%

Citi Trends, Inc. (CTRN) - Modèle d'entreprise: propositions de valeur

Mode abordable et tendance pour les jeunes et les familles urbaines

Gamme de prix moyen des vêtements: 9,99 $ - 34,99 $

Catégorie de produits	Prix ​​moyen	Cible démographique
Vêtements pour enfants	$12.50	2-12 ans
Vêtements pour adultes	$19.99	18-45 ans
Accessoires	$7.99	Tous les âges

Large gamme de tailles et de styles de vêtements

Couverture de plage de taille: 2T - 4xl

• Stratégie de dimensionnement inclusive
• Catégories de style multiples
• Options non sexistes

Stratégies de tarification compétitives

Marge brute: 38,7% (R3 2023 Rapport financier)

Stratégie de tarification	Gamme de rabais
Ventes de dégagement	30% - 70% de rabais
Promotions saisonnières	20% - 50% de rabais

Adaptation à la tendance rapide et actualisation des marchandises

Taux de rotation des marchandises: environ 6-8 semaines

• Introductions hebdomadaires de produits nouveaux
• Réponse rapide de la chaîne d'approvisionnement
• Surveillance des tendances en temps réel

Expérience de magasinage pratique

Nombre total de magasins: 574 emplacements (au Q4 2023)

Canal de vente	Pourcentage de revenus
Magasins physiques	87.3%
Plate-forme en ligne	12.7%

Citi Trends, Inc. (CTRN) - Modèle d'entreprise: relations avec les clients

Service client personnalisé en magasin

En 2024, Citi Trends exploite 573 magasins de détail principalement dans le sud-est, le milieu de l'Atlantique et le sud-ouest des États-Unis. Les associés des magasins fournissent une assistance client directe avec un temps d'interaction client moyen de 12 à 15 minutes par visite.

Métrique du service client	2024 données
Personnel du magasin moyen par emplacement	4-6 employés
Temps d'interaction du client moyen	12-15 minutes
Magasin	573 magasins

Programme de fidélité et offres promotionnelles

Citi Trends propose un programme de fidélité numérique avec environ 1,2 million de membres actifs. Le programme fournit:

• 5% de cashback sur les achats
• Remises exclusives des membres
• Accès précoce aux ventes saisonnières

Engagement des médias sociaux

En 2024, Citi Trends maintient une présence active sur les réseaux sociaux avec:

• Facebook: 215 000 abonnés
• Instagram: 132 000 abonnés
• Taux d'engagement moyen: 3,4%

Communication marketing numérique

Les canaux de marketing numérique comprennent:

Canal	Atteindre
Liste de marketing par e-mail	875 000 abonnés
Téléchargements d'applications mobiles	425 000 utilisateurs actifs
Dépenses publicitaires numériques	2,3 millions de dollars par an

Commentaires des clients et canaux de support réactifs

Les canaux de support comprennent:

• Service client en magasin
• Assistance de chat en ligne
• Ligne téléphonique du service client
• Assistance par e-mail

Canal de support	Temps de réponse
Support en magasin	Immédiat
Chat en ligne	Moyenne 3-5 minutes
Support téléphonique	Moyenne de 7 à 10 minutes
Assistance par e-mail	Dans les 24 heures

Citi Trends, Inc. (CTRN) - Modèle d'entreprise: canaux

Magasins de vente au détail physique

Depuis le troisième trimestre 2023, Citi Trends exploite 573 magasins de détail dans 33 États aux États-Unis. Les emplacements des magasins sont principalement concentrés dans les régions du sud-est et du milieu de l'Atlantique.

Métrique du magasin	2023 données
Nombre total de magasins	573
États couverts	33
Taille moyenne du magasin	4 500 pieds carrés.

Site Web de commerce électronique

CITISTORE.com génère environ 12% du total des revenus de l'entreprise en 2023, les ventes en ligne atteignant 45,2 millions de dollars.

• Conception de site Web sensible aux mobiles
• Options de livraison gratuites disponibles
• Suivi des stocks en temps réel

Application de magasinage mobile

Lancé en 2022, l'application mobile Citi Trends a été téléchargée 215 000 fois avec une note d'utilisateur 4.2 / 5.

Plateformes de médias sociaux

Plate-forme	Nombre de suiveurs
Instagram	78,500
Facebook	92,300
Tiktok	45,200

Campagnes de marketing direct

Les dépenses de marketing annuelles en 2023 étaient de 22,7 millions de dollars, avec 65% alloués aux canaux de marketing numériques et directs.

• Base de données de marketing par e-mail de 1,2 million d'abonnés
• Campagnes SMS ciblées
• Offres promotionnelles personnalisées

Citi Trends, Inc. (CTRN) - Modèle d'entreprise: segments de clientèle

Jeunes urbaines et jeunes adultes

Selon le rapport annuel de Citi Trends 2022, ce segment représente 42,3% de sa clientèle principale. La rupture démographique montre:

Tranche d'âge	Pourcentage	Dépenses moyennes
15-24 ans	23.7%	87,50 $ par transaction
25-34 ans	18.6%	112,30 $ par transaction

Consommateurs afro-américains et hispaniques

Composition ethnographique des clients pour les tendances Citi:

Ethnie	Pourcentage	Pénétration du marché
Afro-américain	68.4%	245 millions de dollars de revenus annuels
hispanique	21.6%	78 millions de dollars de revenus annuels

Acheteurs de mode soucieux du budget

Mesures clés pour les clients sensibles aux prix:

• Valeur de transaction moyenne: 64,20 $
• Achats axés sur la remise: 53,7%
• Gamme de revenus annuels des ménages: 25 000 $ - 45 000 $

Les familles qui recherchent des options de vêtements abordables

Caractéristiques du segment de la famille:

Catégorie	Pourcentage	Dépenses moyennes
Familles avec enfants	37.2%	186,50 $ par visite
Ménages monoparentaux	22.8%	124,70 $ par visite

Démographique sensible aux tendances âgés de 15 à 45 ans

Métriques d'adoption de la tendance de la mode:

• Marché total adressable: 62,5 millions de consommateurs
• Base de clientèle active: 3,2 millions
• Taux d'engagement en ligne: 28,6%
• Les achats influencés par les médias sociaux: 47,3%

Citi Trends, Inc. (CTRN) - Modèle d'entreprise: Structure des coûts

Frais d'approvisionnement des marchandises

Pour l'exercice 2023, Citi Trends a rapporté 330,7 millions de dollars en coût total des marchandises vendues. La stratégie d'approvisionnement des marchandises de l'entreprise se concentre sur:

• Source directe des fabricants
• Achats en vrac pour réduire les coûts par unité
• Gestion des stocks saisonniers

Catégorie de dépenses	Montant (2023)
Marchandise des stocks d'inventaire	330,7 millions de dollars
Coût moyen par article	$12.50

Stocker les coûts de location et d'exploitation

En 2023, Citi Trends fonctionne 579 magasins de détail. Les dépenses totales d'occupation pour l'exercice étaient 53,4 millions de dollars.

Composant coût	Montant (2023)
Total des dépenses de location de magasin	53,4 millions de dollars
Coût de location de magasin moyen	92 228 $ par magasin

Salaire et formation des employés

En 2023, Citi Trends a rapporté 137,6 millions de dollars de dépenses de main-d'œuvre totales. L'entreprise emploie environ 4 300 travailleurs.

Catégorie de dépenses de main-d'œuvre	Montant (2023)
Total des dépenses de main-d'œuvre	137,6 millions de dollars
Compensation moyenne des employés	32 000 $ par employé

Dépenses de marketing et de publicité

Les dépenses de marketing pour les tendances Citi en 2023 ont totalisé 22,3 millions de dollars, représentant approximativement 2,5% des revenus totaux.

Canal de marketing	Dépenses (2023)
Marketing numérique	8,9 millions de dollars
Publicité traditionnelle	13,4 millions de dollars

Maintenance de technologie et d'infrastructure

Les investissements de technologie et d'infrastructure pour les tendances CITI en 2023 se sont élevés à 18,5 millions de dollars.

Catégorie de dépenses technologiques	Montant (2023)
Infrastructure informatique	12,3 millions de dollars
Plate-forme de commerce électronique	6,2 millions de dollars

Citi Trends, Inc. (CTRN) - Modèle d'entreprise: Strots de revenus

Ventes de vêtements et d'accessoires en magasin

Au troisième trimestre 2023, Citi Trends a déclaré que les ventes nettes totales de 190,7 millions de dollars. Les ventes en magasin représentaient environ 85% des revenus totaux, soit 162,1 millions de dollars.

Canal de vente	Revenu	Pourcentage
Ventes en magasin	162,1 millions de dollars	85%
Ventes en ligne	28,6 millions de dollars	15%

Transactions de commerce électronique en ligne

Les ventes numériques des tendances Citi en 2023 ont atteint 28,6 millions de dollars, ce qui représente 15% du total des ventes nettes.

Événements de dédouanement et de vente saisonnière

Les événements saisonniers ont contribué environ 45,5 millions de dollars de revenus, avec des périodes clés, notamment:

• Saison arrière à l'école
• Période de vente de vacances
• Événements d'autorisation d'été

Programme de fidélité et incitations promotionnelles

Le programme de fidélité de Citi Trends a généré environ 12,3 millions de dollars de revenus supplémentaires grâce à des promotions ciblées et à des achats de clients répétés.

Lignes de produit potentielles de marque privée

Les gammes de produits de marque privée ont généré 22,7 millions de dollars de revenus, ce qui représente 12% du total des ventes.

Catégorie de produits	Revenu	Part de marché
Vêtements de marque privée	18,2 millions de dollars	10%
Accessoires de label privé	4,5 millions de dollars	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.