Citi Trends Hits Stride with Consistent Execution and Strong Sales Growth
Citi Trends has continued its impressive run of consistent execution and strong sales growth in the second quarter of 2026, building on the momentum from Q1. The company's CEO, Ken Seipel, reported during a recent earnings conference call that comparable store sales increased by 10.5% for the quarter, marking the eighth consecutive quarter of comparable store sales growth.
This marks a notable milestone in the company's history, as it demonstrates the durability and consistency of its strategy. The performance has also driven a continuation of the two-year stack comparable store sales trend of approximately 25% into Q3 to date during the important back-to-school season. Seipel highlighted that this focused and disciplined approach is driving strong results, with adjusted EBITDA for the quarter improving by $6.6 million compared to last year's loss of $1.1 million.
Heather Plutino, Chief Financial Officer, covered the Q2 and P&L to-date results during the call, highlighting the company's ability to drive sales flow through to profit. The adjusted EBITDA for the quarter was $5.5 million, with a 28% year-to-date sales flow through to profit. This is a significant improvement compared to the prior year.
The company has also made notable strides in controlling expenses, with store payroll leveraged by 70 basis points year to date. Distribution center productivity has increased, and the team has found ways to lower distribution center costs by 60 basis points in the first half through improved efficiency. Additionally, the sales support teams have achieved strong expense controls, allowing the company to invest in incremental marketing on social media.
Ken Seipel was quick to thank the entire team for driving results and controlling expenses, which has converted sales into profit. The company's CEO emphasized that this is a testament to the hard work and dedication of the team. Speaking of profit, adjusted EBITDA for the first half of 2026 was $19.4 million, a $14.1 million improvement compared to the prior year.
The company remains keenly focused on its three 2026 strategic priorities: consistent execution, sales flow through to profit, and accelerated growth. The second quarter results demonstrate that Citi Trends is on track to meet these goals, and investors are likely eager to see how the company will continue to execute on this strategy in future quarters.
