Citi Trends, Inc. (CTRN): history, ownership, mission, how it works & makes money

A Brief History of Citi Trends, Inc. (CTRN)

Foundation and Early Years

Citi Trends, Inc. was founded in 1950 by Murray W. Kahn as a discount retailer specializing in urban fashion. Originally known as "Kahn's Bargain Stores," the company later rebranded as Citi Trends in 2000. The first store under the new name was opened in Savannah, Georgia, focusing on providing affordable apparel to underserved communities.

Growth and Expansion

Throughout the 2000s, Citi Trends experienced significant growth. By 2005, the company had 75 stores in operation. This number jumped to over 200 stores by 2010, fueled by increased demand for value-driven retail options for fashion-conscious consumers.

In 2011, Citi Trends went public and was listed on the NASDAQ under the ticker symbol CTRN. The IPO raised approximately $29 million, allowing the company to further finance its expansion strategy.

Financial Performance

For the fiscal year 2022, Citi Trends reported a total revenue of $716.5 million, representing an increase compared to $642.8 million in 2021. The company achieved a net income of $38.9 million for 2022, an increase from $12.1 million the previous year.

Market Position and Strategy

Citi Trends positions itself as a fast fashion retailer appealing to urban consumers. The company’s strategy emphasizes maintaining low prices while offering a wide range of products, including apparel, accessories, and home goods. Citi Trends targets a demographic primarily consisting of young adult consumers in underserved areas.

Challenges and Resilience

In 2020, the COVID-19 pandemic posed significant challenges to retail, but Citi Trends adapted by enhancing its e-commerce capabilities. The company reported an increase in online sales, accounting for approximately 10% of total revenue in 2021.

Recent Developments

As of October 2023, Citi Trends operates over 600 stores across 33 states. The company continues to focus on expanding its footprint in metropolitan areas while enhancing its product offerings. In 2023, Citi Trends announced plans to increase the number of stores by approximately 10-15 in the upcoming fiscal year.

Stock Performance

The stock performance of Citi Trends has seen fluctuations in the past years. As of October 2023, the stock price of CTRN was approximately $36.50, reflecting market evaluations of its growth potential and the broader retail environment.

Outlook

Citi Trends is actively focusing on enhancing its supply chain efficiency and expanding its private label brands, which currently account for a significant portion of sales. The company’s ongoing initiatives aim to strengthen its position in the competitive retail landscape.

A Who Owns Citi Trends, Inc. (CTRN)

Corporate Overview

Citi Trends, Inc. (CTRN) operates as a retailer of urban fashion and accessories, primarily targeting the value-conscious consumer segment. The company operates approximately 600 stores across the United States.

Ownership Structure

The ownership of Citi Trends is characterized by a mix of institutional and individual investors. As of the latest filings, the breakdown of ownership is as follows:

Major Institutional Investors

Several institutional investors hold significant positions in Citi Trends. The following table displays the largest institutional shareholders as of the most recent data:

Executive Leadership

The executive leadership of Citi Trends plays a crucial role in strategic decision-making. Key executives include:

• Chief Executive Officer: Eric L. Johnson
• Chief Financial Officer: A. J. Decker
• Chief Merchandising Officer: Margaret D. Hsu
• Chief Operating Officer: Krista M. Black

Stock Performance

Citi Trends, Inc. is traded under the ticker symbol CTRN on the NASDAQ. As of the latest available data:

Shareholder Meetings and Voting

Citi Trends conducts annual shareholder meetings, where shareholders can vote on important corporate matters. The latest meeting was held on June 16, 2023, where the following proposals were voted on:

Citi Trends, Inc. (CTRN) Mission Statement

Overview

Citi Trends, Inc. is a retail company specializing in the sale of trendy apparel and accessories for African American and urban consumers. The company's mission statement reflects its commitment to providing high-quality merchandise at value-driven prices.

Mission Statement

The official mission statement of Citi Trends, Inc. is: "To be the leading value retailer of trend-right, high-quality apparel and accessories for the whole family. We aim to create a unique shopping experience that fosters respect for our customers and associates."

Core Values

• Customer Focus: Meeting the needs of customers through superior service.
• Integrity: Operating with honesty and transparency.
• Innovation: Adapting to emerging trends in the market.
• Community Engagement: Supporting the communities in which they operate.

Financial Performance

As of the fiscal year ending January 28, 2023, Citi Trends reported the following financial highlights:

Customer Demographics

Citi Trends serves a diverse customer base with a strong emphasis on urban communities. The demographic breakdown includes:

Store Presence

As of the end of fiscal year 2023, Citi Trends operates:

Strategic Goals

• Expand Store Footprint: Targeting an increase of 10% in store count over the next five years.
• Enhance E-commerce: Aiming for an increase of 25% in online sales year over year.
• Diversity and Inclusion: Focus on hiring practices that reflect the communities served.
• Sustainability Initiatives: Implementing programs focused on reducing carbon footprint.

How Citi Trends, Inc. (CTRN) Works

Company Overview

Citi Trends, Inc. is a retail company that specializes in offering urban fashion and accessories, catering primarily to value-conscious customers. The company's business model emphasizes affordability and a wide selection of merchandise. As of 2023, Citi Trends operates approximately 600 stores across 33 states.

Revenue Generation

In the fiscal year 2022, Citi Trends reported total revenues of approximately $751.1 million, an increase from $723.7 million in 2021. The company continues to see growth due to rising demand for affordable fashion.

Product Offerings

Citi Trends provides a diverse range of products, including apparel for men, women, and children, along with accessories and home goods. The company focuses on the latest trends at discounted prices. In 2022, the breakdown of product categories was as follows:

Customer Demographics

Citi Trends’ target demographic consists primarily of lower to middle-income shoppers. The demographic profile is as follows:

• Age: 18-45 years
• Income Level: Below $50,000 annually
• Geographic Concentration: Urban and suburban areas

Store Expansion Strategy

The company aims to continue its expansion strategy by opening new stores and identifying emerging markets. In fiscal 2022, Citi Trends opened 25 new store locations, bringing the total to 600 stores, with plans for further expansion in 2023.

Financial Performance

Citi Trends' financial performance for the first half of 2023 shows a positive trend, with net income reported at $12.4 million compared to $10.9 million in the same period of the previous year. The company's net margin stands at 1.7%.

Supply Chain Management

Citi Trends operates a centralized supply chain to manage its inventory efficiently. This includes sourcing products directly from manufacturers to ensure cost-effectiveness. The company collaborates with over 300 suppliers globally.

Marketing Strategies

The marketing strategy of Citi Trends focuses on social media engagement and localized promotions. Digital marketing efforts account for approximately 30% of sales, with heavy investments in platforms like Facebook and Instagram.

Conclusion

Citi Trends continues to thrive by leveraging its unique position in the urban fashion sector, focusing on affordability, and maintaining a robust supply chain. The strategic expansion and targeted marketing efforts are pivotal to its growth.

How Citi Trends, Inc. (CTRN) Makes Money

Revenue Streams

Citi Trends, Inc. primarily generates revenue through the sale of apparel and accessories. The company operates more than 600 stores across the United States, focusing on urban fashion merchandise targeted towards value-conscious consumers.

Merchandising Strategy

The company's merchandising strategy emphasizes offering a wide variety of products, including:

• Women's Apparel
• Men's Apparel
• Children's Apparel
• Footwear
• Accessories

Financial Performance

As of the fiscal year 2022, Citi Trends reported total revenues of approximately $1.14 billion. This marked a year-over-year increase of about 21% from the previous year's revenues of $941 million.

Operational Metrics

The operating income for Citi Trends in fiscal year 2022 stood at $75 million, representing a margin of approximately 6.6%.

Sales Growth

In the fourth quarter of fiscal year 2022, the company reported an increase in comp store sales of 15% compared to the same period in 2021.

Inventory Management

Efficient inventory management has been pivotal. As of Q4 2022, total inventory was approximately $182 million, with a turnover ratio of 3.2.

Store Count and Expansion

As of 2022, Citi Trends operated 606 stores. The company plans to add approximately 15-20 new stores in 2023.

Geographic Distribution

Approximately 80% of Citi Trends' stores are located in the southeastern and southwestern regions of the United States.

Digital Sales Growth

Digital sales represented roughly 10% of total sales in 2022, indicating a growing online presence. The company has invested in improving its e-commerce platform to capture increasing online demand.

Customer Demographics

Citi Trends’ primary customers are value-seeking consumers in urban areas, with a focus on demographic segments including:

• Families
• Young adults
• Teens

The average transaction value in 2022 was around $25 per sale.

Comparative Data

Conclusion of Financial Strategy

Citi Trends continues to leverage its unique merchandising strategy and urban-focused consumer base to drive growth and maintain a strong financial position in the retail market.