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The results validate that balanced approach, and we believe there is a significant runway for continued growth in our Men’s category. Women’s footwear continued to show early signs of progress. The off-price and extreme value strategy is beginning to gain traction in our shoe area, and we are seeing improved customer response. We are also pleased with the progress across the board, and we believe that the broader footwear category represents significant growth potential going forward. Family basics and sleepwear was one of our top growth areas in the quarter. Our merchants introduced better styling and trend to complement the already strong values.
The combination of trend-relevant styles and improved inventory positioning generated a strong top-line sales performance and helped drive both traffic and conversion. From a marketing and brand perspective, this holiday season marked an important moment for Citi Trends, Inc. with the launch of our Joy Looks Good On You campaign and refreshed social media presence under @wearecititrends. The results exceeded our expectations. Our flagship Joy video generated over 55,000,000 views and engagements, demonstrating the power of authentic storytelling that reflects the communities we serve. If you have not seen it yet, I encourage you to visit http://www.cititrends.com for the original video and original content celebrating real moments of joy across the Black community. This campaign represents more than marketing.
It brings to life our brand promise, which is “styles that see you, prices that amaze you, and trends that tell your story.” Going forward, the customer brand promise guides everything we do as we continue to strengthen our relationship with the communities we proudly serve. Now let us turn our attention to the full year 2025 results. In 2025, we executed against our three-phase strategy framework: repair, execute, and optimize. Our first priority was the repair phase, restoring the fundamental and foundational business disciplines required to run a successful retail company.
I am very pleased with the work our team accomplished to strengthen our foundation, sharpen our merchandise strategy, and improve the operational disciplines required to support long-term profitable growth. For the year, comparable store sales increased 9.7%. Two-year comparable growth was 13.1% and net sales reached a total of $820,000,000. In addition, we achieved more than 200 basis points of gross margin improvement, 120 basis points of SG&A leverage, and EBITDA growth of $26,000,000 on a year-over-year basis to $11,800,000. Our EBITDA growth was achieved while also funding an above-target annual bonus for our team for the first time in several years.
These results represent significant achievement in a relatively short period of time and reflect the early success of our transformation strategy. Our fiscal 2025 growth was driven by four factors: a sharper focus on our core Black customer, stronger merchandising assortments, better value communication, and a more engaging in-store experience. As I have shared previously, our rapid turnaround is enabled by Citi Trends, Inc.’s clear points of differentiation. First, our laser focus on serving Black customers, a customer segment that we understand deeply. Second, a strategic advantage of neighborhood-based locations that put us in the heart of the communities we serve. Citi Trends, Inc. holds a unique position as the only off-price retailer dedicated to Black consumers.
Its cultural relevance is a significant competitive advantage. Black customers are trendsetters. They are early adopters of fashion, which enables us to curate assortments with immediate, authentic appeal. Our connection to this customer has been strengthened through the comprehensive consumer insights study we conducted, combined with the expertise of our trend director who identifies and translates current and relevant trends into actionable merchandising strategies. This dual approach allows us to not only reflect our customer’s style preferences with greater precision, but also anticipate emerging trends before they hit the mainstream with popularity. This work is a key reason that we generated consistent comp store increases for the past 19 months.
Transaction counts grew mid to upper single digits year over year every quarter in fiscal 2025, while basket size expanded throughout the year. We are attracting more customers and they are spending more per visit, powerful evidence that our updated product assortment strategy is resonating. Our customers are discerning shoppers who recognize true value extends beyond price alone. When we deliver on-trend fashion, the right style, and quality merchandise, they are willing to invest more, and this insight guides our merchandising strategy. Beyond merchandising, we also made major strides operationally in 2025. We leveraged SG&A by 120 basis points through foundational business practices that drove better execution. Inventory management reached new levels of efficiency this quarter.
We supported comp store sales growth with less average store inventory than last year, which is a testament to our improved buying processes, supply chain improvements, and smarter allocation. This efficiency creates a powerful flywheel effect: optimizing working capital, greater flexibility to respond to emerging trends, and protecting our gross margins. Speed improvements in our supply chain allowed us to maintain optimal in-store inventory while reducing overall inventory levels. Enhanced work processes, productivity standards, and day-to-day management enabled us to significantly reduce in-process inventory. In late second half of this year, we implemented the AI-based allocation system across all of our merchandising categories. The results have exceeded our expectations.
We are now deploying AI-based planning systems to streamline sales and inventory planning for our merchant teams and further enhance their effectiveness. Throughout 2025, we fundamentally transformed how we operate. We now run the business through standardized KPIs, real-time dashboards, structured business reviews, and performance-linked incentives. As I often say, retail is detail, and execution without measurement is just guesswork. Our KPI data-driven approach provides visibility that keeps teams aligned and drives continuous improvement, which is the cornerstone of our execution strategy. In 2025, we also executed a strategic expansion and modernization program that positions us well for accelerated store growth. Our stores are embedded in communities where we have built trust over many years.
The combination of convenient proximity and strong word-of-mouth recommendations creates powerful and sustainable traffic drivers. We opened three new locations and remodeled 62 stores in 2025, bringing approximately 30% of our fleet to an updated format. These refreshed stores inspire our teams, elevate brand perception, and signal our commitment to investing in local neighborhoods. Our late fall openings in Jacksonville, Florida, Columbia, South Carolina, and Bainbridge, Georgia exemplified our pilot market backfill approach, strategically opening new stores while simultaneously remodeling existing locations to capture greater market share. We remodeled nine additional stores across these markets—five in Columbia and four in Jacksonville—and amplified our presence through local marketing initiatives including branded city bus wraps.
After a full holiday season, these new locations have performed well above our expectations, validating our data-driven site selection methodology and giving us confidence to scale and accelerate our store growth. Before I turn the call over to Heather for more information on 2025, I want to take a moment to recognize the Citi Trends, Inc. team. A turnaround of this nature is hard work. There is a lot of speed and a lot of dedication required. I am proud of our team; each person is highly engaged, very focused on our customer, and focused on building a better and more profitable company.
I simply want to say thank you to everybody for the long hours, the consistent energy, the unwavering dedication, and the commitment to continuous improvement. I will now turn the call over to Heather to review the Q4 and fiscal 2025 business results in more detail, and then I will return to talk more about the 2026 outlook. Heather?
Heather Plutino: Thank you, Ken, and good morning, everyone. I am excited to walk you through our financial results for the fourth quarter and for fiscal 2025, a highly transformational year for Citi Trends, Inc. We have accomplished a lot in a short period of time, but as we say, we are just getting started. Our momentum will continue through 2026, and the guidance I will share with you shortly will demonstrate that our objective of increasing shareholder return remains at the core of our transformation. Our performance in the fourth quarter demonstrates significant progress in our business transformation.
We achieved robust top- and bottom-line results with comparable store sales increasing 8.9% and adjusted EBITDA of $11,900,000, both at the high end of our guidance range, confirming that our turnaround strategies continue to gain traction. Total sales for the fourth quarter increased 9.1% compared to Q4 2024 to $230,400,000. Comparable store sales increased 8.9% with about two-thirds of comp sales growth from increased transactions and the remaining third from a higher average basket. On a two-year stack basis, comp increased 15.3%. As Ken said, this marks our sixth consecutive quarter of positive comp growth.
Gross margin increased 20 basis points versus last year to 39.9% driven by lower markdowns reflecting the impact of our improved merchandise assortment and value proposition, upgraded allocation process, and our inventory efficiency efforts. While we are pleased with our gross margin rate, it did fall a bit short of our expectations for the quarter due to slightly higher-than-expected freight expense and slightly higher markdowns to ensure we exited the quarter clean. Fourth quarter adjusted SG&A expenses totaled $80,000,000 compared to $76,700,000 a year ago. The increase to last year is due to increased store and DC expenses to support higher sales, and $1,800,000 of incremental incentive compensation expense.
SG&A was lower than expected in the quarter due to store and DC closures during January’s winter storm and a true-up of our year-end bonus accrual on actual KPI results. Adjusted SG&A as a percent of sales was 34.7%, leveraging 160 basis points versus last year. Adjusted EBITDA grew $4,800,000 over last year to $11,900,000, with adjusted EBITDA margin, EBITDA as a rate of sales, up 180 basis points to 5.2%. During the quarter, we closed three stores. Turning to our full year fiscal 2025 results, total sales for the year increased 8.9% over last year to $820,000,000. Comparable store sales increased 9.7% and 13.1% on a two-year basis.
Consistent with each quarter of the year, full-year comps were driven mostly by increased transactions with increased average basket contributing the balance. Gross margin expanded 210 basis points to 39.6% driven by fewer markdowns and lower shrink as we anniversaried last year’s strategic inventory reset as well as a reduction in freight expense rate versus last year. Adjusted SG&A expenses were $312,800,000 compared to $290,300,000 in 2024. The dollar increase to last year includes $9,700,000 of incremental bonus and equity expense, plus added store and DC expenses to support $67,000,000 of incremental sales. As a percent of sales, adjusted SG&A rate leveraged 120 basis points versus last year.
Adjusted EBITDA for the year grew to $11,800,000, a $26,000,000 increase compared to a year ago. EBITDA margin grew 330 basis points, driven by gross profit expansion and SG&A leverage. During the year, we opened three new stores, remodeled 62 locations, and closed four stores, ending the year with 590 stores. Now turning to the balance sheet. We are pleased with our inventory position, ending the year with total inventory down 7.4% compared to a year ago. We remain focused on improving our inventory efficiency through faster turns and enhanced supply chain speed. Because of these ongoing initiatives, year-end average in-store inventory declined 2% versus last year.
Our balance sheet remains healthy with $66,000,000 of cash at the end of the year, no debt, and no drawings on our $75,000,000 revolver. This financial strength gives us the flexibility to invest in growth while providing operational stability as we execute our transformation. Now turning to our outlook for fiscal 2026. As Ken mentioned, one of the areas of focus in the new fiscal year is consistent execution of our model. By delivering on our execution priorities, we expect to produce strong sales flow-through to profit in 2026. Before I get to the details of our outlook, let me spend a moment on a change we are making to two non-GAAP metrics.
Beginning in fiscal 2026, we will be excluding equity-based compensation from adjusted SG&A and adjusted EBITDA. Equity-based compensation is a non-cash expense, and we believe its exclusion will increase clarity for our investors about our operating results while providing greater transparency on cash generation from operations. To help with modeling, fiscal 2025 equity-based compensation expense by quarter was $1,000,000 in Q1, $1,500,000 in each of the second and third quarters, and $1,400,000 in Q4, totaling $5,400,000 for fiscal 2025. In fiscal 2026, the expense is estimated to be in the range of $5,500,000 to $6,000,000.
The outlook I am about to walk through for these two non-GAAP metrics, adjusted SG&A and adjusted EBITDA, reflects this change for both 2026 and the prior year period.
With that, in fiscal 2026, we are planning total sales growth of 6% to 8%, with comparable store sales growth of 5% to 7%; gross margin expansion of approximately 100 basis points driven by continued improvement in markdowns from our ongoing inventory efficiency efforts and leverage of our new merch planning and merch allocation systems, lower shrink as we continue to leverage new camera systems, and lower freight rates from planned supply chain enhancements; adjusted SG&A leverage of 70 to 100 basis points versus the adjusted rate of 37.5% in fiscal 2025 due to ongoing disciplined expense control, enabling us to leverage our highly fixed cost base as sales increase; adjusted EBITDA to be in the range of $34,000,000 to $38,000,000 compared to $17,200,000 in fiscal 2025, with an increase in adjusted EBITDA margin of approximately 200 basis points from the 2.1% delivered in 2025.
For the year, we plan to open approximately 25 new stores utilizing the data-driven site selection methodology we developed in fiscal 2025. These stores will be a mix of existing and new markets. We are anticipating four store closures in the year, and we will continue our remodeling program updating 50 locations, bringing the percent of fleet in an updated store format to approximately 42% by year end. Finally, full-year capital expenditures are expected to be in the range of $35,000,000 to $40,000,000 with the majority of spend on new stores and remodels. In closing, we are proud of the significant progress we made in 2025, which has fundamentally transformed our business.
We successfully executed on our key strategic priorities, strengthened our operational foundation, and delivered solid results. We are well positioned to capitalize on the strong foundation to build momentum throughout 2026, focusing on consistent execution, driving operational improvements, and investing in the initiatives that will fuel sustainable, profitable growth. We remain confident in our ability to deliver our long-term financial targets and firmly believe that the work we are doing today positions us to achieve those objectives while creating meaningful value for our shareholders. Ken said it really well, but I just want to add my thanks to our dedicated teams across Citi Trends, Inc. whose unwavering commitment continues to drive our success.
Their talents, resilience, and focus on delivering results have been instrumental in our transformation journey. With that, I will hand the call back over to Ken. Ken?
Kenneth Seipel: Thank you, Heather. Now let me turn to our business initiatives for fiscal 2026. As we enter 2026, we are firmly in the execute phase of our growth plan, focused on delivering the customer brand promise. Our brand promise is clear: styles that see you, prices that amaze you, and trends that tell your story. Every one of our internal team members is acutely focused on bringing the brand promise to life for every customer, every store, every day. In support, we developed three priorities for 2026, which are consistent execution, sales flow-through to profit, and accelerated growth. The first is consistent execution.
With established practices now in place, we have identified several very specific product opportunities to continue our comparable store sales growth. A key focus for 2026 will be repositioning our Women’s business to fully capture the style, trend, and sizing opportunities we see in the market. We are updating our product offerings across Juniors, Plus, and Missy categories to ensure trend-right merchandise is front and center for our female customers. This represents a significant opportunity to drive traffic and sales growth. Throughout 2026, we will maintain our disciplined focus on improved style, trend, and value across all product categories.
The success we have seen in Children’s and Men’s demonstrates what is possible when we execute consistently, and we are applying those learnings company-wide. Our creative director has significantly improved our focus on key trends in the market and is working with our buyers to curate a refined assortment of styles. From opening price points to premium branded fashion, our merchant team translates these trends into compelling styles that deliver exceptional value to our customers. We have opportunity to grow our off-price buying strategy to ensure continuous flow of exciting brands and products at incredible value. The off-price market remains robust, giving us the advantage of being highly selective. This is part of our competitive advantage and customer value proposition.
Off-price values fueled growth in family footwear, and we see a path of continued improvement in shoes and throughout the store. We remain excited about our extreme initiative featuring compelling brands at discounts of up to 75% off MSRP, which is driving increases in traffic and basket size while protecting margins. We have completed several exciting deals so far this year, and we are excited about getting the product into our stores soon to add excitement to the treasure hunt and shopping experience. Building on our strong marketing campaign efforts from holiday, in 2026 we will consistently execute marketing throughout the year.
Our plans include expanding our social media engagement and influencer partnerships to maintain strong brand awareness, developing community-focused initiatives throughout the year that create meaningful connections with customers whose stories we are honored to help tell, and continuing to invest in marketing that authentically represents and celebrates our core customer. This is not just about visibility. It is about deepening relationships and reinforcing Citi Trends, Inc. as an essential retail partner for the communities that we proudly serve. Our next priority is generating strong sales flow-through to profit, which means incremental sales must convert to disproportionate profit growth.
Our plan this year calls for top-line growth in the mid to high single digits while more than doubling our adjusted EBITDA performance. There is no question that 2026 will be a pivotal year in the profit profile for our company. We have several tested and validated initiatives underway to help us deliver exceptional profit growth, none more important than our recently implemented AI-based product allocation system. More accurate store-by-store product allocation is not only improving sales, but we are seeing significant reduction in markdowns and reduction of inventory working capital. In addition, by the end of Q2, we will have advanced AI-based facial recognition security cameras in place in our stores.
Our test this past fall indicated a significant change in theft and accountability. In conjunction, we are updating store product scanners and communication equipment to help improve work productivity and increase customer service in our stores. The supply chain is focused on transportation cost efficiency and is in the process of implementing improved best practice standards to help increase the capacity for product growth while working more efficiently. As I mentioned, we now have KPIs for each of our functions and dashboard reporting to ensure we execute as planned. Our third priority is growth. Our growth will be disciplined, return-focused, and strategic. Our plan is backed with tangible, actionable initiatives that will generate over million dollars of EBITDA by 2027.
In 2026, we will remodel 50 stores, open approximately 25 new stores, and prepare to open 40 new stores in 2027. Our new store expansion is guided by a disciplined approach that combines analytics, market expertise, and financial metrics. Using AI tools, we have analyzed three years of transaction data from every store combined with comprehensive geolocation studies to understand the specific customer and market characteristics that drive success. This data-driven approach has demonstrated approximately 90% accuracy in the sales prediction. This is going to help us identify and replicate our most successful store profiles while minimizing risk as we expand our footprint.
Beyond the analytics, we are applying strict financial criteria to every new store decision, targeting mature store averages of approximately $1,500,000 in sales and mid-teens four-wall contribution margins. This three-part approach—advanced AI-driven analytics, local market expertise from our real estate team, and disciplined financial hurdles—positions us to expand intelligently while maximizing returns on investments. Next, one of our growth priorities is ensuring our entire team has embraced the concepts of personal accountability for results and the ownership of continuous self-development.
Citi Trends, Inc. is evolving into a learning organization, which is a company that facilitates the continuous learning and development of all employees to transform itself, adapt to changes, and improve performance, positioning us to maximize growth opportunities as they arise. Speaking of growth opportunities, our strong, debt-free balance sheet has enabled us to explore growth beyond the three-year plan. We are in the early stages of reviewing synergistic acquisition opportunities that are complementary to our strategic plan. So in closing, progress at Citi Trends, Inc. is well underway. Our track record of consistent comparable store sales increases shows our strategy is working. Our execution is more consistent and our customer connection is stronger than ever.
We are debt free, disciplined, and positioned for growth. We have a clear path to profitable expansion, stronger earnings, and lasting shareholder value. We are clearly focused on our customer. The foundation is stronger, and the opportunity ahead is significant. But we still have processes to refine, categories to optimize, and systems to build. We are more than just a retailer. We are a neighborhood destination for Black families delivering style, trend, value, and trust that no one else can deliver. Citi Trends, Inc. is executing with discipline, growing with purpose, and unlocking sustainable growth and shareholder value. I am confident in our strategy and our team’s ability to execute.
The foundation we built positions us well for continued growth in 2026 and well beyond. Thank you for your time. I will turn it over to Rob now to facilitate questions and answers. Rob?
Operator: Thank you. We will now be conducting a question-and-answer session. In the interest of time, we ask that you please limit yourself to one question and one follow-up. If you would like to ask a question at this time, please press 1 on your telephone keypad, and a confirmation tone will indicate your line is in the question queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from the line of Michael Baker with D.A. Davidson. Please proceed with your questions.
Michael Baker: Thanks, guys. I will run through a couple real quick. First, just weather/cadence looks like maybe a little bit of a slowdown in January, but a better February. So a lot of retailers saw weather issues in January. Can you talk about that? And then I presume February was helped by tax refunds. That is the first question. Secondly, if you could talk about closeouts percent of sales, where you are in that, how much that can grow. And then third, if you could touch on the last thing you said there, the synergistic acquisitions, a little bit more detail, and then exactly what that could be. Is that a real estate play? Is that a different concept?
If you could help us there. Thanks.
Kenneth Seipel: Yep. Thanks, Mike. In terms of weather, a couple of comments on that. As we all know, the January weather got a little bit tough toward the tail end, and we tracked, obviously, an impact that last 10 days or so that probably impacted our comp line a little bit more. It was a little bit offset by—we should be honest about that and say that we did have a bit of an advantage in early January of a non-comparable weather event for the prior year, right? So there is a little bit of an offset there, but there was a bit of an impact.
I believe at one point—and I may be wrong on this—Heather, correct me, but I think we had nearly half of our stores closed for multiple days. All of that was really kind of it. Interestingly enough, beyond the snow, the trends picked right back up immediately, and as you point out, February and early March have been running through our past trends. Anything you would add there, Heather?
Heather Plutino: No. You nailed it.
Kenneth Seipel: I think the next question is on closeouts. Our closeouts—actually, the answer to that is a little complicated to give you because it varies a little bit by category. I called out that our shoe team has a pretty high penetration of closeouts, so they are working deals and finding some pretty exceptional deals out there, and it is one of the reasons that business is really starting to turn around quite nicely. It is a high penetration in shoes, a little less penetration that we are seeing in our Men’s category. Men’s has been in and out of closeouts, and we had a really good Q4, but part of their Q4 success was driven by closeouts.
From a percentage point of view, it depends on the category itself very specifically. My point is that the deal market is really robust out there right now. As we are learning how to manage these deals, running through the DCs, being more efficient there, and being a little bit more expedient around even the deal-making process, we see a real path to adding—this is a complementary, additive thing. You have heard me say in the past I think extreme values can grow to about 10%. Over time, we are less than halfway there. Closeouts are about overall 30% of our mix, and we are not quite there either.
These are two big items of growth for next year that will keep our comps moving, in addition to the discipline that I referred to. I think your last question was around acquisitions. As I mentioned, it is completely early stages. We are just at a point where we are starting to get a banking team aboard. They are surveying the landscape for us, considering options. As we go forward, we see a path that—because we are doing so well and we have such a great marketplace corner here—that we are being pretty selective about items that might help us accelerate our growth. I want to be really clear about that.
This is not an idea of just going in and doing a bunch of acquisitions. I am not interested in that. What I am interested in is what we can do to complement our overall success. I do not mean to sidestep your question. I do not have a clear answer for you yet. We literally are in early stages. I hope that by summertime, I can come back with a little bit more color for you and give you more. Just appreciate we broadened our lens now, and we are thinking about the next phase of growth for Citi Trends, Inc. beyond our LRP.
Heather Plutino: Mike, the only thing I would add is that the reason that we have added it to the script and started talking about it is just in keeping with our goal of always being very transparent with our investors about what is on our mind and what is the longer term for Citi Trends, Inc. We are keeping our focus on the stated goal of EBITDA growth of $60,000,000 versus 2024, but, oh, by the way, what is around the corner? It is a testament to what Ken talks about as bifocal vision. We are looking at what is in front of us and then what is longer term. Just wanted to call that out.
Michael Baker: Yeah. That makes perfect sense. Thank you.
Operator: Our next question is from the line of Jeremy Hamblin with Craig-Hallum. Please proceed with your questions.
Will (Craig-Hallum): Hey. This is Will on for Jeremy. Thanks for taking my questions. Off to an impressive start. I just wanted to start going back to the comp trends here in Q1. Lapping the plus 10% from last year, could you give us any color on how the rest of the quarter shapes up in terms of the April lap from last year?
Kenneth Seipel: Yeah, for sure. As I mentioned in the script, we are anticipating high single digits at this stage. April this year, as you know, is a little tricky. There is a bit of a calendar shift with Easter coming out of April and so forth. We are looking at it in a combined quarter, plus the addition of tax refunds and a lot of moving parts in Q1 this year. That is why we are pretty confident in our guide and the trend right now of high single digits. As you point out—thank you for mentioning that—it is on top of our 10% last year, so it is a really nice two-year stack trend.
Will (Craig-Hallum): Got it. And then it sounds like unit growth plan remains on track. What are you thinking on expected cadence for the 25 openings this year, and any color on your visibility into the 40 openings expected for next year and how that pipeline is shaping up?
Heather Plutino: I will take 2026, and I will turn that back to Ken for the longer term. We have already opened two stores in February, so our goal to get to 25 stores this year is well underway. We anticipate about 10 more stores opening in the July time frame, and then the balance—13—opening in October. We will consider 2026 as a bit of a transition year, and I will ask Ken to describe the 2027 cadence.
Kenneth Seipel: Thank you. Going forward, strategically, we will be grouping all of our store openings around three time periods throughout the year, so it will be fairly easy for you to model as we go forward. We will be opening a block of stores in the spring period, typically around March, leading into the tax refund time and into Easter. The other opening period will be mid-July, prepping that block of stores to move into the back-to-school period and be right at the peak. The third opening period will be mid-October, to get ready for holiday and open into peak. You can see the rhyme or reason here is that we are strategically opening stores going into peak periods.
That allows us to have some of our best product out there, of course. Also, the customer reason to shop is stronger, and over time, it will help us introduce our stores very successfully to a new marketplace. We do not have an exact cadence worked out for 2027 yet, but in my mind, you could divide that by three and get pretty close. We are trying to have a balanced attack, and you will not be far off if you take the 40 divided by three in those time periods I mentioned.
Will (Craig-Hallum): Got it. That is super helpful. Last one for me: could you share any update on the rollout of the loyalty program and some of the ways you are planning to leverage that program in the near and longer term?
Kenneth Seipel: Thanks for asking. We are very excited about the loyalty program. It is out and in testing right now in a few stores. We ran into a couple hiccups, to be honest with you. We were not excited about some of the messaging and marketing. I think it is mostly because we have been so busy doing some things we did not give that the right energy. I put that on pause for a little bit. We want to get the messaging and the marketing correct and make sure that our consumer reason to shop is very strong. We have to build a great value proposition around CRM. There is no question this will be a fantastic success for us.
I have seen it in the past and I am already seeing high engagement in this program. I want to be careful. I do not want to do it just to do it. I want to do it really well. Our teams are working on that, and I expect that in the back half of the year, we will have a full-blown rollout of CRM, and of course, all the wonderful data that flows from those types of programs.
Will (Craig-Hallum): Appreciate the color. Best wishes.
Operator: Thank you. At this time, I will turn the floor back over to Kenneth Seipel for closing comments.
Kenneth Seipel: Thank you, everyone. We appreciate you joining us today, and we look forward to giving you an update in June. Take care now.
Operator: Thank you. Ladies and gentlemen, thank you for your participation. This will conclude today’s conference. You may disconnect your lines at this time, and have a wonderful day.
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Citi Trends (CTRN) Q4 2025 Earnings Transcript was originally published by The Motley Fool