Citi Trends, Inc. (CTRN): Modelo de negócios Canvas [Jan-2025 Atualizado]

Mergulhe no mundo dinâmico do Citi Trends, Inc. (CTRN), uma potência de varejo que revolucionou a moda urbana acessível para jovens e famílias urbanas. Com um foco nítido em roupas modernas e econômicas e um modelo de negócios inovador que abrange lojas físicas e plataformas digitais, esse varejista criou um nicho único no mercado de moda competitivo. Do sudeste das lojas dos Estados Unidos para um ecossistema robusto de comércio eletrônico, o Citi Trends oferece estilo, acessibilidade e valor que ressoa com consumidores sensíveis à tendência envelhecidos 15-45, tornando os sonhos de moda possível para compradores conscientes do orçamento.

Citi Trends, Inc. (CTRN) - Modelo de negócios: Parcerias -chave

Fabricantes de vestuário e calçados

O Citi Trends fontes de produtos dos seguintes fabricantes:

Fabricante	Localização	Categorias de produtos
Lildan Activewear	Estados Unidos/Honduras	Camisetas, moletons
Skechers	Estados Unidos	Calçados
Levi Strauss & Co.	Estados Unidos	Produtos jeans

Distribuidores por atacado

Principais parcerias de distribuição por atacado incluem:

• Urban Fashion Distributores LLC
• Rede de atacado de roupas da moda
• Grupo de distribuição de moda

Gerenciamento de logística e cadeia de suprimentos

Parceiros de logística para tendências do Citi:

Empresa	Serviços prestados	Valor anual do contrato
XPO Logistics	Armazenamento, transporte	US $ 3,2 milhões
Cadeia de suprimentos da FedEx	Gerenciamento de inventário	US $ 2,7 milhões

Parceiros de tecnologia

Detalhes da colaboração de tecnologia:

• SAP - Planejamento de recursos corporativos
• Oracle - Sistemas de Gerenciamento de Inventário
• Shopify - plataforma de comércio eletrônico

Investimento total de parceria para 2024: US $ 12,5 milhões

Citi Trends, Inc. (CTRN) - Modelo de negócios: Atividades -chave

Merchandising de varejo de roupas urbanas e modernas acessíveis

A partir do quarto trimestre 2023, as tendências do Citi operavam 573 lojas de varejo em 33 estados. A empresa se concentrou em oferecer moda urbana acessível com um preço médio de US $ 15 a US $ 35 por item de roupas. A mistura de mercadorias inclui:

• Vestuário masculino: 35% da oferta de produtos
• Vestuário feminino: 30% da oferta de produto
• Vestuário infantil: 25% da oferta de produto
• Acessórios: 10% da oferta de produto

Compras e gerenciamento de inventário

Métrica	2023 dados
Valor total do inventário	US $ 86,4 milhões
Taxa de rotatividade de inventário	4.2x
Período médio de retenção de inventário	87 dias

Operações de loja e expansão

A estratégia de expansão da loja envolve um crescimento geográfico direcionado nos mercados urbanos e suburbanos. A contagem de lojas da rede aumentou 12 lojas em 2023. O tamanho da loja em média 4.500-5.500 pés quadrados.

Desenvolvimento e manutenção da plataforma de comércio eletrônico

As vendas on -line representaram 8,2% da receita total em 2023, com US $ 37,6 milhões gerados através de canais digitais. Os recursos da plataforma de comércio eletrônico incluem:

• Site responsivo para dispositivos móveis
• Rastreamento de inventário em tempo real
• Opções de frete grátis

Campanhas de marketing e promocionais

Canal de marketing	2023 gasto	Porcentagem de orçamento de marketing
Mídia social	US $ 2,3 milhões	42%
Publicidade digital	US $ 1,7 milhão	31%
Promoções na loja	US $ 1,1 milhão	20%
Mídia tradicional	US $ 0,4 milhão	7%

Citi Trends, Inc. (CTRN) - Modelo de negócios: Recursos -chave

Extensa rede de varejo

A partir do quarto trimestre de 2023, o Citi Trends opera 574 lojas de varejo, predominantemente localizadas no sudeste dos Estados Unidos. Distribuição de armazenamento Distribuição:

Região	Número de lojas	Percentagem
Sudeste dos Estados Unidos	458	79.8%
Outras regiões	116	20.2%

Reconhecimento da marca

Posicionamento do mercado de moda urbana

• Demografia-alvo: consumidores afro-americanos com idades entre 18 e 35 anos
• Vendas médias da loja por local: US $ 1,2 milhão em 2023
• Taxa de fidelidade da marca: 62% de base de clientes recorrentes

Equipe de gerenciamento

Liderança -chave a partir de 2024:

Posição	Nome	Anos com empresa
CEO	David Makuen	3 anos
Diretor Financeiro	Kenneth Sewell	2 anos

Gerenciamento de inventário

Métricas de sistemas de distribuição

• Centros de distribuição centralizados: 3
• Espaço total do armazém: 1,2 milhão de pés quadrados
• Taxa de rotatividade de inventário: 4,3 vezes por ano

Relacionamentos de fornecedores

Composição da rede de fornecedores:

Tipo de fornecedor	Número de fornecedores	Porcentagem de fornecimento total
Fabricantes domésticos	42	65%
Fabricantes internacionais	23	35%

Citi Trends, Inc. (CTRN) - Modelo de negócios: proposições de valor

Moda acessível e moderna para jovens e famílias urbanas

Faixa média de preço da roupa: US $ 9,99 - US $ 34,99

Categoria de produto	Preço médio	Alvo Demográfico
Roupas infantis	$12.50	Idades de 2 a 12
Roupas adultas	$19.99	De 18 a 45 anos
Acessórios	$7.99	Todas as idades

Ampla gama de tamanhos e estilos de roupas

Cobertura da faixa de tamanho: 2t - 4xl

• Estratégia de dimensionamento inclusivo
• Categorias de vários estilos
• Opções neutra em termos de gênero

Estratégias de preços competitivos

Margem bruta: 38,7% (Relatório Financeiro de 2023 2023)

Estratégia de preços	Intervalo de desconto
Vendas de autorização	30% - 70% de desconto
Promoções sazonais	20% - 50% de desconto

Adaptação rápida de tendências e realização de mercadorias

Taxa de rotatividade de mercadorias: aproximadamente 6-8 semanas

• Apresentações semanais de novos produtos
• Resposta rápida da cadeia de suprimentos
• Monitoramento de tendências em tempo real

Experiência de compra conveniente

Contagem total da loja: 574 locais (a partir do quarto trimestre 2023)

Canal de vendas	Porcentagem de receita
Lojas físicas	87.3%
Plataforma online	12.7%

Citi Trends, Inc. (CTRN) - Modelo de Negócios: Relacionamentos do Cliente

Atendimento ao cliente personalizado na loja

A partir de 2024, o Citi Trends opera 573 lojas de varejo principalmente no sudeste, no meio do Atlântico e no sudoeste dos Estados Unidos. Os associados da loja fornecem assistência direta ao cliente com um tempo médio de interação do cliente de 12 a 15 minutos por visita.

Métrica de atendimento ao cliente	2024 dados
Funcionário médio da loja por local	4-6 funcionários
Tempo médio de interação do cliente	12-15 minutos
Locais da loja	573 lojas

Programa de fidelidade e ofertas promocionais

O Citi Trends oferece um programa de fidelidade digital com aproximadamente 1,2 milhão de membros ativos. O programa fornece:

• 5% de reembolso nas compras
• Descontos exclusivos para membros
• Acesso antecipado a vendas sazonais

Engajamento da mídia social

A partir de 2024, o Citi Trends mantém a presença ativa da mídia social com:

• Facebook: 215.000 seguidores
• Instagram: 132.000 seguidores
• Taxa de engajamento médio: 3,4%

Comunicação de marketing digital

Os canais de marketing digital incluem:

Canal	Alcançar
Lista de marketing por e -mail	875.000 assinantes
Downloads de aplicativos móveis	425.000 usuários ativos
Gasto de anúncios digitais	US $ 2,3 milhões anualmente

Feedback do cliente e canais de suporte responsivo

Os canais de suporte incluem:

• Atendimento ao cliente na loja
• Suporte de bate -papo online
• Linha telefônica de atendimento ao cliente
• Suporte por e -mail

Canal de suporte	Tempo de resposta
Suporte na loja	Imediato
Chat online	Média de 3-5 minutos
Suporte telefônico	Média de 7 a 10 minutos
Suporte por e -mail	Dentro de 24 horas

Citi Trends, Inc. (CTRN) - Modelo de Negócios: Canais

Lojas de varejo físico

A partir do terceiro trimestre de 2023, o Citi Trends opera 573 lojas de varejo em 33 estados nos Estados Unidos. Os locais das lojas estão concentrados principalmente nas regiões do sudeste e do meio do Atlântico.

Métrica da loja	2023 dados
Contagem total de lojas	573
Estados cobertos	33
Tamanho médio da loja	4.500 pés quadrados.

Site de comércio eletrônico

O Citistore.com gera aproximadamente 12% da receita total da empresa em 2023, com as vendas on -line atingindo US $ 45,2 milhões.

• Design de sites responsivos a dispositivos móveis
• Opções de frete grátis disponíveis
• Rastreamento de inventário em tempo real

Aplicativo de compra móvel

Lançado em 2022, o aplicativo móvel do Citi Trends foi baixado 215.000 vezes com uma classificação de usuário 4.2/5.

Plataformas de mídia social

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

Campanhas de marketing direto

As despesas anuais de marketing em 2023 foram de US $ 22,7 milhões, com 65% alocados aos canais de marketing digital e direto.

• Banco de dados de marketing por email de 1,2 milhão de assinantes
• Campanhas de SMS direcionadas
• Ofertas promocionais personalizadas

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

Jovens urbanos e jovens adultos

De acordo com o relatório anual de 2022 do Citi Trends, este segmento representa 42,3% de sua base de clientes central. O colapso demográfico mostra:

Faixa etária	Percentagem	Gastos médios
15-24 anos	23.7%	US $ 87,50 por transação
25-34 anos	18.6%	US $ 112,30 por transação

Consumidores afro -americanos e hispânicos

Composição etnográfica do cliente para tendências do Citi:

Grupo étnico	Percentagem	Penetração de mercado
Afro -americano	68.4%	Receita anual de US $ 245 milhões
hispânico	21.6%	Receita anual de US $ 78 milhões

Compradores de moda consciente do orçamento

Métricas-chave para clientes sensíveis ao preço:

• Valor médio da transação: $ 64,20
• Compras orientadas por desconto: 53,7%
• Faixa anual da renda familiar: US $ 25.000 - US $ 45.000

Famílias que buscam opções de roupas acessíveis

Características do segmento familiar:

Categoria	Percentagem	Gasto médio
Famílias com crianças	37.2%	US $ 186,50 por visita
Famílias monoparentais	22.8%	US $ 124,70 por visita

Demográfico sensível à tendência com idades entre 15 e 45 anos

Métricas de adoção de tendências da moda:

• Mercado endereçável total: 62,5 milhões de consumidores
• Base de clientes ativos: 3,2 milhões
• Taxa de engajamento online: 28,6%
• As mídias sociais influenciaram as compras: 47,3%

Citi Trends, Inc. (CTRN) - Modelo de negócios: estrutura de custos

Despesas de compras de mercadorias

Para o ano fiscal de 2023, o Citi Trends relatou US $ 330,7 milhões em custo total dos bens vendidos. A estratégia de compras de mercadorias da empresa se concentra em:

• Fornecimento direto de fabricantes
• Compra em massa para reduzir os custos por unidade
• Gerenciamento de inventário sazonal

Categoria de despesa	Valor (2023)
Compras de inventário de mercadorias	US $ 330,7 milhões
Custo médio por item	$12.50

Armazenar custos de aluguel e operacional

A partir de 2023, o Citi Trends opera 579 lojas de varejo. As despesas totais de ocupação para o ano fiscal foram US $ 53,4 milhões.

Componente de custo	Valor (2023)
Total de despesas de aluguel de lojas	US $ 53,4 milhões
Custo médio de aluguel da loja	US $ 92.228 por loja

Salários e treinamento de funcionários

Em 2023, o Citi Trends relatou US $ 137,6 milhões em despesas totais de mão -de -obra. A empresa emprega aproximadamente 4.300 trabalhadores.

Categoria de despesas com trabalho	Valor (2023)
Despesas totais de mão -de -obra	US $ 137,6 milhões
Compensação média dos funcionários	US $ 32.000 por funcionário

Despesas de marketing e publicidade

Despesas de marketing para tendências do Citi em 2023 totalizaram US $ 22,3 milhões, representando aproximadamente 2,5% da receita total.

Canal de marketing	Despesas (2023)
Marketing digital	US $ 8,9 milhões
Publicidade tradicional	US $ 13,4 milhões

Manutenção de tecnologia e infraestrutura

Investimentos de tecnologia e infraestrutura para tendências do Citi em 2023 totalizaram US $ 18,5 milhões.

Categoria de despesa de tecnologia	Valor (2023)
Infraestrutura de TI	US $ 12,3 milhões
Plataforma de comércio eletrônico	US $ 6,2 milhões

Citi Trends, Inc. (CTRN) - Modelo de negócios: fluxos de receita

Vendas de roupas e acessórios na loja

A partir do terceiro trimestre de 2023, o Citi Trends reportou vendas líquidas totais de US $ 190,7 milhões. As vendas na loja representaram aproximadamente 85% da receita total, no valor de US $ 162,1 milhões.

Canal de vendas	Receita	Percentagem
Vendas na loja	US $ 162,1 milhões	85%
Vendas on -line	US $ 28,6 milhões	15%

Transações de comércio eletrônico online

As vendas digitais para as tendências do Citi em 2023 atingiram US $ 28,6 milhões, representando 15% do total de vendas líquidas.

Eventos de folga e venda sazonal

Os eventos sazonais contribuíram com cerca de US $ 45,5 milhões em receita, com períodos -chave, incluindo:

• Temporada de volta às aulas
• Período de vendas de férias
• Eventos de liberação de verão

Programa de fidelidade e incentivos promocionais

O programa de fidelidade da Citi Trends gerou aproximadamente US $ 12,3 milhões em receita adicional por meio de promoções direcionadas e compras de clientes repetidas.

Linhas de produtos em potencial de marca própria

As linhas de produtos de marca própria geraram US $ 22,7 milhões em receita, representando 12% do total de vendas.

Categoria de produto	Receita	Quota de mercado
Roupas de marca própria	US $ 18,2 milhões	10%
Acessórios de marca própria	US $ 4,5 milhões	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.