Citi Trends — Q2 2026 Earnings Summary

Financial Performance

• Preliminary unaudited Q2 2026 total sales increased 10.9% year-over-year to $211.6 million.
• Q2 2026 comparable store sales increased 10.5% year-over-year and 19.7% on a two-year basis.
• Year-to-date 2026 preliminary unaudited total sales increased 12.7% year-over-year to $442.5 million.
• Year-to-date 2026 comparable store sales increased 12.2% year-over-year and 21.8% on a two-year basis.
• The company reported sales increases in every merchandise category compared to the prior year.
• The quarter marked the eighth consecutive quarter of comparable store sales growth.
• Preliminary results are estimates subject to change upon completion of standard closing procedures.

Guidance and Future Outlook

• Management anticipates the continuation of the two-year comparable store sales trend of approximately 20% into the early back-to-school season.
• Full Q2 2026 earnings will be released before market opens on Tuesday, August 25, 2026.
• A conference call and webcast will be held on August 25, 2026, at 9:00 a.m. ET.

Business Segments and Product Lines

• The company operates 594 stores across 33 states.
• Enhanced merchandise assortments and an improved value proposition are driving customer response.
• An elevated focus on "wear-now" product for the summer season drove consistent transaction and basket growth in each month of the quarter.
• The company serves primarily Black families in the United States with apparel, accessories, and home trends.

Market and Competitive Landscape

• The company is participating in the virtual 2026 Small Cap Conference hosted by D. A. Davidson on August 10, 2026.
• Management highlighted a focus on converting sales into profit and disciplined execution.

Risks and Challenges

• Preliminary results are unaudited and subject to material changes after standard closing procedures.
• Forward-looking statements are subject to risks including general economic conditions, inflation, energy and fuel costs, unemployment, and political or social unrest.
• Potential risks include new taxes or tariffs, trade restrictions, natural disasters (e.g., hurricanes), pandemics, transportation delays, freight rate changes, and labor retention issues.
• Risks also include inventory management, fashion trend forecasting, consumer spending patterns, competition, cybersecurity, and regulatory changes regarding environmental and sustainability topics.

Management Commentary and Tone

• Ken Seipel, CEO, stated that preliminary sales results demonstrate the strategic transformation is working.
• Management emphasized an unwavering commitment to the Black consumer and building long-term shareholder value.
• The tone reflects confidence in the consistency and durability of the strategy, citing the eighth consecutive quarter of comparable store sales growth.

Other Key Points

• The conference call will be accessible via dial-in (1-877-407-0779) and online replay at www.ir.cititrends.com.
• The company is represented at the Small Cap Conference by CEO Ken Seipel and CFO Heather Plutino.
• Contact for investor inquiries is Tom Filandro of ICR, Inc.