Citi Trends Stock Jumps Despite Q4 Miss, Bets Big On 'Off-Price' Model

Citi Trends Inc (NASDAQ:CTRN) shares traded higher on Tuesday after the fourth-quarter earnings results.

The company reported a fourth-quarter sales decline of 1.9% year-on-year to $211.17 million, missing the analyst consensus estimate of $211.54 million.

Comparable store sales increased 6.4%. Adjusted EPS loss of $1.54 missed the consensus estimate for EPS of $0.18.

Gross margin of 39.7% expanded 60 basis points Y/Y due to lower freight expense, partially offset by planned in-season markdowns.

Quarter-end total inventory decreased 6% versus last year. Adjusted EBITDA of $7.1 million decreased 29% Y/Y.

Citi Trends held $61.1 million ...