Citi Trends Inc. will likely start this year’s third quarter with a solid back-to-school (BTS) selling season, helped by an even bigger shoe assortment and a young men’s trend section.
is a key growth category for Citi Trends. In a UBS presentation in March, the retailer’s chairman and chief executive officer Kenneth Seipel told attendees the company will “improve store productivity by increasing efforts in key categories with double-digit growth like footwear, plus size, big man, and young men,” naming a selection of focus areas.
And last month when the retailer hosted its first quarter earnings conference call, footwear was again highlighted for continued sales momentum.
“Family footwear continued its momentum from Q4 with customers responding enthusiastically to expanded branded offerings at exceptional value across all genders,” Seipel said. “In footwear, off-price and extreme value strategy continues to gain momentum, driving both traffic and basket growth.”
If last year’s third quarter report provides any hint of what’s to come, this year’s bts season could be even bigger following the off-pricer’s build out of its store categories. Seipel told investors at the firm’s third quarter conference call in December that it began the quarter with a “strong bts season.” He also called out strong momentum on women’s footwear.
Because it is an off pricer, brands vary from store-to-store, according to sales associates who answered telephone calls at various Citi Trend doors. Some brands mentioned that are currently sold at those locations include Fubu, Southpole, Ed Hardy and Juicy Couture, while the sneaker brands mentioned were Fila, Reebok, New Balance and Puma.
The Savannah, Ga.-based retailer has of annual sales about $820 million, with 592 stores in 33 states that has a strong presence in the Southeast. Its also an off-pricer that focuses primarily on the African-American consumer.
First quarter results for the period ended May 3 saw net income at $7.8 million, or 95 cents a share, versus net income of $871,000, or 11 cents, a year ago. Net sales were up 14.4 percent to $230.9 million from $201.7 million. Comparable store sales increased 13.9 percent in the quarter.
Seipel says the retailer’s consumers are trendsetters and early adopters who understand that “value is not just about price.”
In the June call, Seipel also noted: “Consistent with 2025 performance, nearly half of our sales increase was driven by increased customer traffic, a key indicator that our product and brand are resonating.”
The chief executive officer also said he called out “our shoe dept, which has done a nice job the last two quarters. We actually see a path there to probably more than double that department over time. And we’ve got quite a bit of work to do to get that done, but there’s certainly significant growth there.”
But shoes aren’t its only focus. The retailer is also looking holistically at all shopping categories. Last year’s fourth quarter saw the launch of is young men’s trend section, which Seipel said is “highly successful and has continued into today.” He also noted that another focus is the repositioning of the women’s business to “fully capture style trend and sizing opportunities in the market across junior, plus and missy,” with the company applying learnings from the strongest performing categories like men’s and children’s to elevate company-wide execution of its strategies.
Opening price points start with value-focused basics, with the core better tier between $7 and $12. At the top end, the best tier offers fashion-forward product well below specialty retail price points and branded extreme value opportunities that offer discounts of up to 75 percent off manufacturers’ suggested retail prices.
Citi Trends’ most frequent shopper has household income from $75,000 to $150,000, who account for 40 percent of its revenue base. These shoppers buy every week or bi-weekly. The next tier, $50,000 to $75,000, shop monthly and represents 45 percent of the company’s revenue base. The third segment shops less frequently and is more budget conscious due to lower household income.
The average age is 40 years old, and often has a family with children or part of a multi-generation household. What appears to work in Citi Trends favor is that its retail doors are community anchors, with store managers and associates often its customers’ friends, family and neighbors. Even better, for many communities, the doors are the primary and often the only value retailer.
Citi Trends has a goal of getting 650 stores by the end of 2027, opening 25 new stores this year and at least 40 percent year in 2027 and beyond. It also favors store openings in three key cycles ahead of peak shopping seasons: in February ahead of tax refund season, July before bts, and October in time for the holiday selling season.
To be sure, Citi Trends isn’t the only retailer looking to capture market share, particularly with the bts season in play over the next few weeks.
A Deloitte 2026 bts survey found that K-12 parents plan to spend $13 less this year, or $557 per student. It estimates the bts market at $30.4 billion. This year, parents plasn to spend 22 percent more — $323 versus $264 a year ago — on apparel and accessories, which includes shoes, to replace worn items and allow for “selective splurges,” while tech spending is forecasted to decrease by 16 percent as they defer device upgrades.
Similar to a Coresight study, the Deloitte report found that most parents, at 40 percent, will shop at mass merchant retailers, flat from a year ago. Online retailers are next at 20 percent, also flat from a year ago. Rounding out the top five are department stores at 6 percent, specialty apparel stores at 5 percent and off-price at 5 percent.
