Citi Trends: Impressive Q3, But The Stock Has Discounted A Full Turnaround
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Citi Trends, Inc. reported a 5.7% growth in Q3 2024 comparable sales, driven by improved product assortment. However, margins are pressured due to strategic investments and calendar shifts. Despite a 70% stock rally post Q2 '24, the market cap near $200 million makes the stock less attractive. Management aims for pre-pandemic EBITDA margins and plans store expansion by late 2025, with a $50 million stock repurchase authorization signaling confidence.
December 03, 2024 | 9:45 pm
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NEUTRAL IMPACT
Citi Trends reported a 5.7% growth in Q3 2024 sales, but margins are under pressure. Despite a 70% stock rally, the market cap near $200 million makes the stock less attractive. Management is confident with a $50 million stock repurchase plan.
The 5.7% sales growth is positive, but margin pressure and a high market cap relative to attractiveness balance the outlook. The stock repurchase plan indicates management's confidence, but the stock's recent rally suggests limited short-term upside.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100