Citi Trends Inc (CTRN) 2026 Q2 法說會逐字稿

Greetings, welcome to Citi Trend's second-quarter 2026 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.

各位好，歡迎參加 Citi Trends 2026 年第二季財報電話會議。(接線員指示) 請注意，本次會議將被錄音。

At this time, I'll turn the conference over to Lyn Walther with ICR. Thank you, Lyn. You may begin.

現在我將把會議交給 ICR 的 Lyn Walther。謝謝你，Lyn。你可以開始了。

Thank you, and good morning, everyone. Thank you for joining us for Citi Trend's second quarter 2026 earnings call. On our call today, Chief Executive Officer, Ken Seiple; and Chief Financial Officer, Heather Plutino.

謝謝，各位早安。感謝各位參加 Citi Trends 2026 年第二季財報電話會議。今天與會者包括執行長 Ken Seiple，以及財務長 Heather Plutino。

Our earnings release was sent out this morning at 6:45 AM Eastern Time. If you have not received a copy of the release, it is available on the company's website at ir.cititrends.com. You should be aware that prepared remarks made today during this call may contain non-GAAP information and forward-looking statements within the meaning of this Private Securities Litigation Reform Act of 1,995.

我們的財報新聞稿已於今天美東時間上午 6:45 發布。若您尚未收到新聞稿，可至公司網站 ir.cititrends.com 取得。您應注意，今天電話會議中的事先準備發言可能包含非 GAAP 資訊，以及符合《1995 年私人證券訴訟改革法》定義的前瞻性陳述。

Management may make additional forward-looking statements in response to your questions. These statements do not guarantee future performance. Therefore, you should not place undue reliance on these statements.

管理層也可能在回答各位提問時提出額外的前瞻性陳述。這些陳述不保證未來表現。因此，您不應過度依賴這些陳述。

We refer you to the company's most recent report on Form 10-K and other subsequent filings with the Securities Exchange Commission. For a more detailed discussion of the factors that can cause actual results to differ materially from those described in the forward-looking statement.

我們請您參閱公司最新的 Form 10-K 年報以及其後向美國證券交易委員會提交的其他文件。其中對可能導致實際結果與前瞻性陳述所述內容出現重大差異的因素，有更詳細的討論。

I will now turn the call over to our Chief Executive Officer, Ken Seipel. Ken?

現在我將把電話會議交給我們的執行長 Ken Seipel。Ken？

Thank you, Lyn, and good morning, everyone. Thank you for joining us today for our second quarter 2026 earnings call. Building on the momentum from Q1, our second quarter results were defined by consistency. Consistence sales trend, consistent execution, and a consistent customer response across every month of the quarter. And I'm pleased to report that consistency has continued into the back-to-school season. Our year-to-date performance on top of strong 2025 results further validates that our strategy is working and our execution is improving.

謝謝你，Lyn，各位早安。感謝各位今天參加我們 2026 年第二季財報電話會議。延續第一季的動能，我們第二季的成果以「一致性」為主要特徵。一致的銷售趨勢、一致的執行力，以及整個季度每個月都呈現一致的顧客反應。我很高興地報告，這種一致性也延續到了返校季。在 2025 年強勁表現的基礎上，我們今年迄今的表現進一步驗證了策略奏效、執行力正在提升。

We remain keeping focused on our three 2026 strategic priorities. Consistent execution, sales flow-through to profit and accelerated growth. As we noted in our sales press release on August 10, our second quarter comparable sales increased 10.5%, which is 19.7% on a two-year basis. This marked our 8th consecutive quarter of comparable store sales growth with the last six quarter momentum of plus 9% growth or better.

我們仍專注於 2026 年三項策略重點：一致的執行、銷售轉化為利潤，以及加速成長。如同我們在 8 月 10 日發布的銷售新聞稿所提到，第二季同店銷售成長 10.5%，以兩年基礎計算為 19.7%。這是我們連續第 8 個季度同店銷售成長，且最近 6 個季度的動能皆達到或優於 +9% 的成長。

The performance demonstrates the consistency and durability of our strategy and this focused and disciplined approach is driving a continuation of our two-year stack comparable store sales trend of approximately 25% into Q3 to date during our important back-to-school season.

此表現展現了我們策略的一致性與持久性；而這種聚焦且自律的方法，正推動我們兩年叠加同店銷售趨勢在第三季迄今（截至目前）於重要的返校季延續約 25% 的水準。

Heather will cover the Q2 and P&L to date results shortly. But I would like to highlight and thank our team for driving results, driving sales along with controlling the expenses, which have converted sales to profit.

Heather 稍後將說明第二季以及迄今的損益表（P&L）結果。但我想特別強調並感謝我們的團隊在推動成果、推動銷售的同時，也控制費用，將銷售轉化為利潤。

And speaking of profit, adjusted EBITDA for the quarter was $5.5 million, which was a $6.6 million improvement over last year's loss of $1.1 million. For the first half of 2026, we delivered EBITDA of $19.4 million, which is a $14.1 million improvement compared to the prior year. And in fact, we've generated more EBITDA in the first six months of 2026 than we generated the entire year last year in '25. I am very proud of the total team effort that resulted in strong sales flow through to profit of 28% year to date.

談到利潤，本季調整後 EBITDA 為 550 萬美元，較去年 110 萬美元的虧損改善 660 萬美元。2026 年上半年，我們達成 EBITDA 1,940 萬美元，較前一年改善 1,410 萬美元。事實上，我們在 2026 年前六個月創造的 EBITDA 已超過去年 2025 年全年所創造的 EBITDA。我為整個團隊的努力感到非常自豪，這使得今年迄今銷售轉化為利潤的流轉率達到 28%。

We're beginning with the gross profit line, which has improved 50 basis points to date due to the hard work of our merchandising team. I'd like to recognize the entire product team for improving our selling margin rate while continuing raising the bar on quality and maintaining sharp pricing.

先從毛利率來看，在商品團隊的努力下，迄今已改善 50 個基點。我想肯定整個產品團隊：在持續提升品質標準並維持犀利定價的同時，也提升了銷售毛利率。

Also, thank you to our loss prevention team, who has really led efforts to reduce shrinkage. Improved selling margin and reduced shrinkage have helped offset the cost pressure of transportation fuel charges in gross profit.

同時也要感謝我們的損失防制團隊，他們確實帶頭推動降低盤損。銷售毛利率提升與盤損下降，有助於在毛利端抵銷運輸燃油附加費帶來的成本壓力。

Store payroll has been leveraged by 70 basis points here today. I want to recognize our store teams who have raised the bar on store standards with consistent execution, keeping our stores neat, clean and organized, while at the same time driving productivity gains.

門市薪資費用迄今已槓桿改善 70 個基點。我想肯定我們的門市團隊：透過一致的執行提升門市標準，使門市保持整潔、乾淨、有條理，同時也帶動生產力提升。

Distribution center productivity has also increased to keep pace with our growing business. And the team has found ways to lower our distribution center costs by 60 basis points in the first half through improved efficiency.

配送中心的生產力也提升，以跟上我們成長中的業務。團隊透過效率改善，在上半年將配送中心成本降低了 60 個基點。

And I also want to recognize our sales support teams in IT, finance, merchandise support, human resources, and legal for very strong expense controls. The work in achieving cost efficiencies allowed us to invest in incremental marketing on social media to build brand awareness, while at the same time, we were able to average SG&A by 260 basis points year-to-date. In summary, job well done, Citi [Trend's]. I'm really proud of the work here. Thank you.

我也要肯定我們在 IT、財務、商品支援、人力資源與法務等銷售支援團隊，在費用控管方面表現非常出色。在達成成本效率的同時，我們得以加碼社群媒體的行銷投資以提升品牌知名度；並且今年迄今 SG&A 也平均改善 260 個基點。總結來說，做得很好，Citi[Trend's]。我對這裡的工作成果感到非常自豪。謝謝。

Now for a few more comments on sales. Q2 marked another quarter of balanced growth, with both transaction counts and basket size increasing over last year. The growth in basket size was also balanced with customers purchasing more units per transaction and higher average unit retail on mix shift, which continues to validate the strength of our trend right assortment and the value we deliver across the three merchandising tiers.

接下來再補充幾點銷售方面的評論。第二季再次呈現均衡成長，交易筆數與客單價（每筆購物金額）皆較去年增加。客單價的成長同樣均衡：顧客每筆交易購買的件數增加，且因組合轉移帶動平均單品零售價提高；這持續驗證我們「趨勢正確」的商品組合實力，以及我們在三個商品層級所提供的價值。

Q2 is one of our lower sales volume quarters, so it's really good to see the consistency of transaction and sales growth during our non-peak periods. We delivered second quarter sales increases over last year in every merchandise division and across all store climate zones and store volume deciles.

第二季是我們銷售量較低的季度之一，因此在非旺季期間仍能看到交易與銷售成長的穩定性，令人振奮。我們在所有商品部門、所有門市氣候區，以及各門市銷售量十分位分組中，第二季銷售皆較去年成長。

That growth was driven by a more trend ride assortment. And an improved value proposition, as well as our heightened focus on delivering [wear-now] product for the summer, enabling us to capture demand during non-peak weeks and capitalize on key moments like Juneteenth, July 4, and the early back-to-school season. We plan to apply a similar playbook for the non-peak period performance this fall between back-to-school and holiday, building on the strategy that worked so well for us last year.

這樣的成長來自更貼近潮流的商品組合。以及更佳的價值主張，並且我們更聚焦於提供適合當下穿著的夏季 [wear-now] 商品，使我們能在非旺季週期中掌握需求，並把握六月節（Juneteenth）、7 月 4 日，以及返校季初期等關鍵時點。我們計畫在今年秋季、介於返校季與假期旺季之間的非旺季期間，採用類似的作法，延續去年對我們非常奏效的策略。

From a merchandising perspective, apparel, non-apparel, and home all increased over Q2 last year and year-to-date. Our men's team, children's team, and family basics produced consistently strong results in the quarter and year-to-date.

從商品角度來看，服飾、非服飾與家居品類在第二季相較去年以及今年迄今皆呈現成長。我們的男裝團隊、童裝團隊與家庭基本款品類，在本季與今年迄今都交出持續強勁的成果。

And in addition, I'd like to highlight and congratulate our family shoe division. The shoe team delivered very strong performance in the quarter by focusing on summer wear-now product, elevated on-trend styles and sharp price value offerings. I often ask by our investors about Citi Trend's long-term ability to continue to grow sales.

此外，我也想特別表揚並恭喜我們的家庭鞋類部門。鞋類團隊聚焦於夏季適合當下穿著的商品、提升更符合潮流的款式，以及提供具競爭力的價格價值組合，使本季表現非常強勁。我經常被投資人問到 Citi Trends 長期持續成長銷售的能力。

Our product momentum continues to be the result of ongoing refinement across our good, better and best pricing tiers. Each quarter, our assortments have become more balanced as we sharpen the quality for price equation on our core product, introduce updated trend product and ensure that we have a good flow of well-known brands at extreme value pricing.

我們的產品動能持續來自於在 good、better 與 best 三個定價層級上的不斷精進。每一季，我們的商品組合都更加均衡：我們強化核心商品的「品質對價格」方程式、導入更新的潮流商品，並確保以極具價值的價格提供知名品牌的良好供給節奏。

While we're really proud of the progress, we do remain humbly aware of the opportunity for continual improvement, and we see a long runway for continued growth in nearly every product category.

雖然我們對進展感到非常自豪，但也仍謙遜地意識到持續改善的空間；我們看到幾乎在每個產品類別中，都有很長的跑道可望持續成長。

So as a company, we remain sharply focused on our primary [Black] customer. Our brand promise to our customers is styles that see you, prices that amaze you, and trends that tell your story. And what's important to highlight again is that our customer base spans a wide range of income levels, including a meaningful portion of middle- and higher-income shoppers.

作為一家公司，我們仍然高度專注於我們的核心[Black]客群。我們對顧客的品牌承諾是：能看見你的風格、讓你驚豔的價格，以及訴說你故事的潮流。而需要再次強調的是，我們的顧客群涵蓋廣泛的收入層級，其中包含相當比例的中等與較高收入消費者。

In fact, customers with household incomes between [$75,000] and $150,000 represent about 25% of our customer base and generate more than 40% of our revenue. This creates a significant opportunity for us to expand our offering of recognizable brands at compelling prices that align with their style and trend expectations.

事實上，家庭年收入介於[$75,000]至15萬美元之間的顧客約占我們顧客基礎的25%，並貢獻超過40%的營收。這為我們帶來顯著機會，可擴大提供具辨識度的品牌，並以具吸引力、且符合其風格與趨勢期待的價格呈現。

You often hear of us refer to good, better, and best product tiers as a way of describing how we build merchandise assortments. However, it's really not quite that linear for our customers who tend to move fluidly between all three good, better and best tiers rather than staying confined to a single pricing and style level.

你們常聽到我們以「好、更好、最好」三個產品層級來描述我們如何建立商品組合。然而，對我們的顧客而言其實並非如此線性；他們往往會在「好／更好／最好」三個層級之間流動切換，而不是被限制在單一的價格與風格水準。

As an example; during a recent visit, I observed two young male shoppers who fit our top tier customer coming to one of our stores and in the single-digit purchase items from across all three pricing tiers. Beginning with buying a trendy outfit from our best product tier, shopping for everyday items in our better tier, and wrapping up the trip with an opening price point t-shirt.

舉例來說：在最近一次走訪中，我觀察到兩位符合我們頂級客群的年輕男性消費者到店，並在單位數件數的購買中，從三個價格層級各自挑選商品。他們先從我們「最好」產品層級購買一套潮流穿搭，再到「更好」層級選購日常用品，最後以一件入門價位的T恤作為本次購物的收尾。

In another instance, an older male customer purchased from our core assortment that in his wife's urging also purchased a trend item. These moments reinforce what we're seeing daily across in our stores and in our shopping basket analysis. Balanced, good, better, and best assortments are important to round out the shopping basket and are a key component for consistent long-term growth.

另一次，一位年長男性顧客從我們的核心商品組合中購買商品，並在太太的催促下也買了一件潮流單品。這些時刻再次印證了我們每天在門市以及購物籃分析中所看到的現象。均衡的「好、更好、最好」商品組合對於完善購物籃很重要，也是實現長期穩健成長的關鍵要素。

These product strategies, combined with our improved discipline in our open to buyer process and the continued benefits of our AI-driven allocation systems, are driving stronger inventory productivity and margin performance.

這些產品策略，加上我們在open-to-buy流程上更嚴謹的紀律，以及AI驅動配貨系統持續帶來的效益，正推動更強的庫存生產力與毛利表現。

I mentioned earlier that we made incremental investment in marketing on our social media platforms. Building on our first quarter CITI Jingle refresh contest in which we invited customers to help modernize the Citi Trends Jingle, and we received a meaningful volume of submissions.

我先前提到，我們在社群媒體平台上加碼了行銷投資。延續第一季的CITI Jingle翻新徵件活動，我們邀請顧客協助讓Citi Trends的廣告歌更現代化，並收到相當可觀的投稿量。

In the second quarter, we transitioned to the customer voting phase. Engagement has continued to exceed our expectations, generating strong social reach and viral moments while also driving incremental store traffic. And the winning jingle is expected to be deployed in the second half of the year.

在第二季，我們轉入由顧客投票的階段。互動熱度持續超出我們預期，帶來強勁的社群觸及與病毒式傳播時刻，同時也帶動額外的到店人流。而得獎的廣告歌預計將於下半年正式上線使用。

But beyond the fund of the contest itself, this initiative reflects our broader marketing objective, deepening our connection with our customers and reinforcing our role in the communities we serve. I encourage you to take a look at our Instagram channel, where we've been sharing some of the best moments from the campaign.

但除了比賽本身的趣味性之外，這項計畫也反映我們更廣泛的行銷目標：加深與顧客的連結，並強化我們在所服務社區中的角色。我也鼓勵各位看看我們的Instagram頻道，我們在那裡分享了本次活動的一些精彩時刻。

On technology, we continue to expand the use of AI across the organization, which I would describe as a steady evolution rather than a single milestone moment.

在科技方面，我們持續擴大AI在全組織的應用；我會將其形容為穩健的演進，而非某個單一里程碑式的時刻。

We recently rolled out an enterprise AI tool to help our teams with data extraction and analytics. This closed AI environment is already helping associates across the business, including our buying teams, work smarter, more efficiently, and more timely manner. This complements the AI tools already in use for product allocation and real estate site selection. And we're in the early stages of applying similar tools to merchandising and assortment planning.

我們近期推出一套企業級AI工具，協助團隊進行資料擷取與分析。這個封閉式AI環境已在全公司範圍內協助同仁（包含採購團隊）更聰明、更有效率、也更即時地工作。這也與我們既有用於商品配貨與不動產選址的AI工具相互補強。此外，我們也正處於將類似工具應用於商品企劃與商品組合規劃的早期階段。

On July 15, we launched our new customer relationship platform, which we're calling the Insiders Club. The Insiders Club turns traffic into loyalty, loyalty into frequency, and frequency then into EBITDA. This gives us the ability to speak directly to our best and most engaged customers and will generate insight about their shopping habits that we'll use to refine and fine-tune our strategies going forward.

7月15日，我們推出全新的顧客關係平台，稱為Insiders Club。Insiders Club能把人流轉化為忠誠度、把忠誠度轉化為更高的來店頻率，並進一步把頻率轉化為EBITDA。這讓我們能直接與最優質、最投入的顧客溝通，並產生關於其購物習慣的洞察，作為我們未來精煉與微調策略的依據。

We're in the early stages of enrollment, and we expect to engage our customers later this fall and build momentum with our best customers during Q4 and well into 2027.

我們目前仍在招募加入的早期階段，預期將在今年秋季稍晚開始與顧客互動，並在第四季與我們最優質的顧客建立動能，延續至2027年及之後。

And speaking of early stages, we are building new store opening momentum this year. I'd like to welcome our four new stores opened at the end of July in two stores in Rochester, New York, additional store in Baltimore, Maryland and Jackson, Tennessee. We've opened nine stores since Q4 of 2025, all of which are exceeding our expectations.

談到早期階段，我們今年正建立新店開幕的成長動能。我想歡迎我們在7月底新開的四家門市：紐約州羅徹斯特兩家、馬里蘭州巴爾的摩一家，以及田納西州傑克遜一家。自2025年第四季以來，我們已開出九家新店，且全部表現都超出我們預期。

Our goal this year is to open approximately 20 stores and accelerate new store growth to around 40 in 2027 and beyond. Each new location is evaluated using our AI tools and held to strict financial return and investment criteria. For our new stores, we're targeting roughly $1.5 million in mature sales and mid-teens four-wall contributions.

我們今年的目標是新開約20家門市，並在2027年及之後將新店成長加速至約40家。每個新據點都會使用我們的AI工具進行評估，並以嚴格的財務報酬與投資標準把關。針對新店，我們目標是成熟期銷售額約150萬美元，以及約中十位數（mid-teens）的四牆貢獻（four-wall contribution）。

Now I'll turn the call over to Heather to walk through the Q2 financial results in more detail, as well as our updated outlook. I'll return after her remarks for some closing comments. Heather?

接下來我把電話交給Heather，請她更詳細說明第二季的財務結果，以及我們更新後的展望。在她發言後，我會回來做一些結語。Heather？

Thank you, Ken, and good morning, everyone. I'm pleased to walk you through our financial results for the second quarter and first half of 2026. Our Q2 results reflect strong top-line growth, continued gross margin expansion, and disciplined expense management, leading to adjusted EBITDA of $5.5 million, a $6.6 million increase compared to a year ago.

謝謝你，Ken，各位早安。我很高興帶各位回顧我們2026年第二季與上半年財務表現。我們第二季的結果反映出強勁的營收成長、毛利率持續擴張，以及嚴謹的費用管理，使調整後EBITDA達到550萬美元，較去年同期增加660萬美元。

These results are evidence that the transformation of Citi's Trends is on track and that the operating model we've built can consistently deliver improved results. Based on our second quarter performance, we are raising our outlook for the year. I'll walk you through that revised outlook shortly, turning first to the specifics of our second quarter results.

這些結果證明Citi Trends的轉型正按計畫推進，且我們建立的營運模式能持續交付更佳成果。基於第二季的表現，我們上調全年展望。我稍後會說明修正後的展望，先從第二季結果的細項開始。

Total sales for the quarter were $211.6 million, a 10.9% increase to Q2 2025. Comparable store sales increased 10.5% or an increase of 19.7% on a two-year basis. Q2 gross margin increased 60 basis points compared to a year ago to 40.6%, driven by higher merchandise margin and lower shrink levels as we continue to leverage investments in improved store level technology and processes. These tailwinds were partially offset by higher freight expense.

本季總銷售額為2.116億美元，較2025年第二季成長10.9%。同店銷售成長10.5%，以兩年基礎計算則成長19.7%。第二季毛利率較去年同期提升60個基點至40.6%，主要受惠於更高的商品毛利，以及在我們持續投入改善門市端科技與流程之下，損耗（shrink）水準下降。上述利多部分被較高的運輸費用所抵銷。

As we discussed last quarter, rising fuel surcharges are leading to higher freight. We expect this to continue throughout the year and have incorporated that impact into our outlook.

如同我們上季所討論的，燃油附加費上升正推升運輸成本。我們預期此趨勢將持續全年，並已將其影響納入我們的展望之中。

Second quarter adjusted SG&A expenses totaled $80.4 million compared to $77.4 million a year ago, with the increase to last year driven primarily by expenses to support $21 million in incremental sales. As a rate of sales, adjusted SG&A for the quarter was 38%, leveraging 260 basis points versus last year. A result of higher sales and are largely fixed expense base.

第二季調整後SG&A費用合計8,040萬美元，去年同期為7,740萬美元；較去年增加主要是為支援新增2,100萬美元的銷售所需的費用。以銷售額比率計，第二季調整後SG&A為38%，較去年槓桿改善260個基點。這是更高銷售額以及我們費用基礎多屬固定性質所帶來的結果。

As I mentioned earlier, adjusted EBITDA grew $6.6 million over Q2 last year to $5.5 million, with adjusted EBITDA margin expanding 320 basis points to 2.6%. During the quarter, we opened four stores as Ken mentioned and closed one location, ending the period with 594 stores. We remodeled 26 stores in Q2, bringing total remodels so far this year to 51 stores.

如我先前提到，調整後EBITDA較去年第二季增加660萬美元至550萬美元，調整後EBITDA利潤率擴張320個基點至2.6%。本季如Ken所述，我們新開四家門市並關閉一個據點，期末門市數為594家。我們在第二季翻新26家門市，使今年截至目前的翻新總數達到51家。

Before turning to the balance sheet, let me provide a few details on our performance in the first half of fiscal 2026. First half comparable store sales were 12.2% with a two-year comp of 21.8%. First half comps were driven by growth in basket and transaction count.

在談資產負債表之前，我先補充幾點我們在2026會計年度上半年的表現細節。上半年同店銷售成長12.2%，兩年同店成長為21.8%。上半年同店成長主要由購物籃金額與交易筆數的增加所帶動。

Adjusted first half EBITDA was $19.4 million. An increase of $14.1 million to last year. EBITDA growth was driven by $50 million of incremental sales, 50 basis points of gross margin expansion and 260 basis points of SG&A leverage. And in the first half of the year, we improved our EBITDA margin by 300 basis points to 4.4%.

經調整後的上半年 EBITDA 為 1,940 萬美元。較去年增加 1,410 萬美元。EBITDA 的成長主要由 5,000 萬美元的新增銷售額、毛利率擴張 50 個基點，以及 SG&A 槓桿改善 260 個基點所帶動。此外，在上半年，我們將 EBITDA 利潤率提升 300 個基點至 4.4%。

Now turning to the balance sheet. Our initiative to improve inventory efficiency continue to deliver returns. We generated 10.5% comp sales growth in the quarter with quarter-end total inventory up only 7.5% to last year. Our balance sheet remains strong with $55.9 million in cash at the end of the quarter, no debt and no drawings on our $75 million revolver.

接著談資產負債表。我們提升庫存效率的措施持續帶來成效。本季我們實現同店銷售成長 10.5%，而季末總庫存僅較去年增加 7.5%。我們的資產負債表仍然穩健：季末現金 5,590 萬美元，無負債，且未動用 7,500 萬美元的循環信貸額度。

We continue to expect our year-end cash balance to be approximately flat to last year's $66 million, and we expect to remain in a strong financial position throughout the year, affording us the flexibility to pursue strategic alternatives.

我們仍預期年末現金餘額將與去年 6,600 萬美元大致持平，並預期全年都能維持強勁的財務狀況，使我們具備追求策略性替代方案的彈性。

Turning to our guidance, we are updating our outlook for fiscal 2026 to incorporate results of our second quarter while maintaining our outlook for the second half of the year. Our updated outlook for the full year is as follows. We now expect comparable store sales growth of 9% to 11%, higher than previous outlook of 8% to 10%, with total sales now expected to grow 10% to 12%.

接著談我們的財測指引，我們正在更新 2026 會計年度的展望，以納入第二季的結果，同時維持對下半年的展望。我們更新後的全年展望如下。我們目前預期同店銷售成長 9% 至 11%，高於先前 8% 至 10% 的展望；總銷售額則預期成長 10% 至 12%。

Gross margin is expected to expand approximately 50 basis points to 70 basis points compared to the 39.6% we delivered in fiscal 2025, consistent with previous outlook. As we discussed in our last earnings call, we are leveraging new systems and processes to drive improvements in both markdowns and shrink while managing the impact of higher freight expense due to the fuel surcharges I mentioned earlier.

毛利率預期將較 2025 會計年度我們達成的 39.6% 擴張約 50 至 70 個基點，與先前展望一致。如同我們在上次財報電話會議中所討論，我們正運用新的系統與流程，推動折價（markdown）與損耗（shrink）的改善，同時管理我先前提到因燃油附加費而上升的運輸費用影響。

We now expected adjusted SG&A leverage in the range of 160 basis points to 180 basis points versus fiscal 2025, higher than previous outlook of 130 basis points to 160 basis points of leverage due to the impact of higher sales plus continuation of our disciplined expense control.

我們目前預期經調整後 SG&A 槓桿改善幅度為 160 至 180 個基點（相較 2025 會計年度），高於先前 130 至 160 個基點的展望，主要反映較高銷售額的影響，以及我們持續嚴謹的費用控管。

Adjusted EBITDA is now expected to be in the range of $38 million to $42 million, an increase to our previous outlook of $35 million to $40 million. At the midpoint, adjusted EBITDA margin is now expected to expand approximately 230 basis points over fiscal 2025.

經調整後 EBITDA 目前預期為 3,800 萬至 4,200 萬美元，較先前 3,500 萬至 4,000 萬美元的展望上調。以中位數計算，經調整後 EBITDA 利潤率目前預期將較 2025 會計年度擴張約 230 個基點。

Our outlook for new stores has been revised slightly to approximately 20 new stores in the year. The change from our previous outlook of 25 new stores is due to timing. We remain confident in our long-range plan for footprint growth and in our ability to execute our store opening strategy. Importantly, our plan to accelerate our store openings to 40 stores in fiscal 2027 remains unchanged.

我們對新店的展望略作修正，全年約開設 20 家新店。相較先前預期的 25 家新店，差異主要來自時程安排。我們仍對長期的據點擴張計畫，以及執行展店策略的能力充滿信心。重要的是，我們在 2027 會計年度將展店加速至 40 家的計畫維持不變。

We will be shifting capital spend from new stores to expand our remodel program in 2026 as a result, we now expect to remodel approximately 60 to 65 locations versus our prior outlook of 50 remodels, and we continue to expect to close approximately four locations in the year.

因此，我們將在 2026 年把資本支出從新店轉向擴大翻新計畫；我們目前預期翻新約 60 至 65 個據點，高於先前預期的 50 個翻新案，且我們仍預期全年約關閉 4 個據點。

Finally, our outlook for full year capital expenditures remains unchanged at a range of $35 million to $40 million. To close, our second quarter results validate the direction we set out for the year. Inventory efficiency, disciplined expense management, and return-focused investments are showing up in our financial results, and we expect that trend to continue. I'm grateful to our team for the continued hard work behind these results, and we look forward to updating you on our progress in our next earnings call.

最後，我們對全年資本支出（capital expenditures）的展望維持不變，仍為 3,500 萬至 4,000 萬美元。總結而言，我們第二季的結果驗證了我們為今年所設定的方向。庫存效率、嚴謹的費用管理，以及以回報為導向的投資，已反映在我們的財務結果中，我們預期這股趨勢將持續。我感謝團隊為這些成果所付出的持續努力，也期待在下一次財報電話會議中向各位更新我們的進展。

With that, I'll hand the call back to Ken. Ken?

接下來我把電話交回給 Ken。Ken？

All right. Thank you, Heather. As we look ahead, we're firmly in the execute phase of our growth plan, focused on delivering against our customer brand promise. Our customers are discerning. They understand that value is more than just price, and they're willing to spend more when the style is right, the trend is relevant, and quality meets their expectations.

好的。謝謝你，Heather。展望未來，我們已堅定進入成長計畫的執行階段，專注於兌現我們對顧客的品牌承諾。我們的顧客很挑剔。他們明白價值不僅僅是價格；當款式到位、趨勢貼近、品質符合期待時，他們願意花更多錢。

In short, value is not just price. Our brand promise is very clear. Styles that see you, prices that amaze you, and trends that tell your story. Our teams are focused every day on bringing that promise to life for our customers.

簡而言之，價值不只是價格。我們的品牌承諾非常清楚。看見你的風格、讓你驚豔的價格，以及訴說你故事的潮流。我們的團隊每天都專注於為顧客把這份承諾落實到位。

To support this, we've established three clear priorities in '26, which are consistent execution, strong sales flow to profit, and accelerated growth.

為了支持這一點，我們在 2026 年建立了三項明確優先事項：一致且穩定的執行、強勁的銷售轉化為獲利，以及加速成長。

First, consistent execution. With foundational practices now in place, we've identified clear product opportunities to sustain comparable store sales growth into the foreseeable future. Our product team has sharpened focus on trend identification, trend curation and style development.

第一，一致且穩定的執行。在基礎作法已到位的情況下，我們已辨識出明確的商品機會，可在可預見的未來持續推動同店銷售成長。我們的商品團隊已更聚焦於趨勢辨識、趨勢策展與款式開發。

From opening price points to premium branded fashion, our merchant team translates these trends into compelling styles that deliver exceptional value to our customers. Each season, we're improving our product trend and style execution while delivering and leveraging AI to optimize allocation. This creates a long runway of growth as we continue to develop and refine our product execution.

從入門價位到高端品牌時尚，我們的採購／商品團隊將這些趨勢轉化為具吸引力的款式，為顧客提供卓越價值。每一季，我們都在提升商品趨勢與款式的執行力，同時導入並運用 AI 以最佳化配貨。隨著我們持續開發並精進商品執行，這將創造長期的成長跑道。

On the marketing front, we're focused on expanding our social and influencer presence and ensuring our brand is authentically represented in everything we do. This is not just about visibility it's about deepening relationships and reinforcing Citi Trend's commitment to the communities that we proudly serve.

在行銷方面，我們專注於擴大社群與網紅影響力，並確保我們的品牌在所有作為中都能被真實地呈現。這不只是提升能見度，更是深化關係，並強化 Citi Trends 對我們自豪所服務社區的承諾。

Our second priority is ensuring strong sales flow to profit. Our plan for 2026 calls for a 10% to 12% sales growth while more than doubling EBITDA, making this a very pivotal year in the evolution of our profit profile.

第二項優先事項是確保強勁的銷售能轉化為獲利。我們 2026 年的計畫目標為銷售成長 10% 至 12%，同時讓 EBITDA 增加至兩倍以上，使今年成為我們獲利結構演進中非常關鍵的一年。

Foundational to profit flow through is leveraging our fixed cost structure and improving productivity of our teams. In addition, we have several initiatives supporting this objective, including our AI-based allocation systems, enhanced store technology to reduce shrink, and ongoing supply chain improvements to increase capacity and efficiency.

推動獲利轉化的基礎在於善用我們的固定成本結構，並提升團隊生產力。此外，我們也有多項措施支持此目標，包括以 AI 為基礎的配貨系統、用以降低損耗的門市科技升級，以及持續的供應鏈改善以提升產能與效率。

And as I've highlighted on prior calls, we continue to leverage KPI dashboards across all functions to ensure disciplined execution. A benefit of our improved execution is our ability to absorb macroeconomic challenges, like increased fuel surcharges into our business model while still achieving improvements as noted for our outlook in the year.

此外，如我在先前的電話會議中所強調，我們持續在各職能運用 KPI 儀表板，以確保紀律性的執行。我們執行力提升的一項好處，是能將宏觀經濟挑戰（例如燃油附加費上升）吸收進我們的商業模式中，同時仍能如我們今年展望所述持續達成改善。

Our third priority is growth, which will be disciplined, return-focused, and strategic. This year we're making a deliberate investment in owning our customer relationship and building a sustainable, data driven growth engine that compounds over time. The objective is to invest early to build customer relationships, and as the CRM system learns and scales, it becomes a meaningful contributor to long-term shareholder value.

第三項優先事項是成長，而這將是有紀律、以回報為導向且具策略性的成長。今年我們正有意識地投資於掌握顧客關係，並打造可隨時間累積效益、以數據驅動的永續成長引擎。目標是在早期投入以建立顧客關係；隨著 CRM 系統學習並擴展規模，它將成為長期股東價值的重要貢獻者。

The Insiders Club transforms Citi Trends from a transaction-based retailer into a relationship-driven brand. It allows us to know our customer, reward our customer, and grow with our customer, while reinforcing the treasure hunt excitement that makes shopping with us a unique and rewarding experience.

Insiders Club 讓 Citi Trends 從以交易為主的零售商，轉型為以關係驅動的品牌。它讓我們能了解顧客、回饋顧客，並與顧客共同成長，同時強化「尋寶式」購物的興奮感，這正是與我們購物獨特且有回報體驗的核心。

In 2026, we expect to open 20 new stores, as Heather mentioned, remodel approximately 60 to 65 locations while preparing to accelerate expansion in '27. Our approach is grounded in data-driven site selection, local market expertise, and disciplined financial criteria.

在 2026 年，如 Heather 所提，我們預期開設 20 家新店、翻新約 60 至 65 個據點，同時為 2027 年加速擴張做準備。我們的方法以數據驅動的選址、在地市場專業，以及嚴謹的財務標準為基礎。

Next, an important priority is ensuring our entire team has embraced the concepts of personal accountability for results and the ownership of continuous skill development. City Trans is evolving into a learning organization.

接著，一項重要的優先事項是確保我們整個團隊都已擁抱「對成果的個人責任」以及「持續技能精進的主人翁精神」這些概念。City Trans 正在演進為一個學習型組織。

We are a company that facilitates the continuous learning and development of all employees to transform, adapt to changes, and improve performance, positioning us to maximize growth opportunities as they arise. And as a part of this initiative, we are focusing on succession planning for our key leadership roles to ensure continuity of our transformation plan while strengthening our bench of talent.

我們是一家促進全體員工持續學習與發展的公司，使我們能夠轉型、適應變化並提升績效，從而在成長機會出現時，做好把握並將其最大化的準備。作為此項倡議的一部分，我們正聚焦於關鍵領導職位的接班人規劃，以確保轉型計畫的延續性，同時強化我們的人才梯隊。

Finally, our strong debt-free balance sheet provides us with flexibility to pursue growth beyond our current organic plan. We continue to evaluate acquisition opportunities that are strategically aligned, financially compelling, and capable of enhancing long-term shareholder value. Any potential transaction will be held to the same disciplined financial standards that have guided our turnaround.

最後，我們強健且無負債的資產負債表，讓我們具備彈性，可在現有內生成長計畫之外追求成長。我們持續評估在策略上契合、在財務上具吸引力，且能提升長期股東價值的併購機會。任何潛在交易都將遵循與我們扭轉局面過程中一貫採用的同等嚴謹財務標準。

To further enhance that flexibility, our Board has improved the implementation of $100 million shelf registration. We view this as a prudent corporate finance measure that provides additional capital capacity should we identify new opportunities to accelerate profitable growth, including potential strategic investments or acquisitions.

為進一步提升這種彈性，我們董事會已改善1億美元擱置式註冊（shelf registration）的執行。我們認為這是一項審慎的公司財務措施；若我們發現可加速獲利成長的新機會（包括潛在策略性投資或併購），此舉可提供額外的資本容量。

Importantly, we expect our existing liquidity and operating cash flow to fully support our current business and our organic growth plans. The shelf does not reflect a current financing need or an intention to raise immediate capital rather; it provides us with additional flexibility to efficiently access the capital markets if and when we identify an opportunity where doing so would create compelling long-term shareholder value.

重要的是，我們預期現有流動性與營運現金流將足以完全支應目前業務以及內生成長計畫。擱置式註冊並不代表目前有融資需求或意圖立即募資；相反地，它讓我們在識別到機會、且我們認為進入資本市場將可創造具吸引力的長期股東價值時，能更有效率地取得資本市場資金。

Our existing share repurchase authorization remains in place with $40 million of authorization on the outstanding agreement. Together, our balance sheet, the shelf registration, and our repurchase authorization provides us with a flexible set of capital management tools. We will deploy or return capital based on the opportunities available to us, market conditions. And ultimately where we believe we can generate the greatest long-term value for our shareholders.

我們既有的股票回購授權仍然有效，現行協議下尚有4,000萬美元的可用授權額度。綜合而言，我們的資產負債表、擱置式註冊與回購授權，為我們提供一套具彈性的資本管理工具。我們將依據可得機會與市場狀況來運用或返還資本。最終，我們會將資本配置在我們認為能為股東創造最大長期價值之處。

So in closing, progress at Citi Trends is well underway. Our track record of consistent comparable store sales shows that our strategy is working, our execution is more consistent, and our customer connection is stronger than ever.

總結來說，Citi Trends 的進展正穩步推進。我們同店銷售持續一致的表現，顯示我們的策略正在奏效、執行更為穩定，且我們與顧客的連結比以往任何時候都更強。

We are debt-free, disciplined, and positioned for growth. We have a clear path to profitable expansion, stronger earnings, and lasting shareholder value. We're clearly focused on our customer. The foundation is stronger and the opportunity ahead of us is significant, but we still have processes to refine, categories to optimize, and systems to build.

我們無負債、紀律嚴明，並已做好成長布局。我們有一條清晰的路徑可實現獲利性擴張、更強勁的獲利，以及持久的股東價值。我們顯然以顧客為核心。基礎更為穩固，前方機會可觀，但我們仍有流程需要精進、品類需要優化、系統需要建置。

We're more than just a retailer. We're a neighborhood destination for Black families, delivering style, trend, value, and trust that no one else can deliver. I'm confident in our strategy and our team's ability to execute. The foundation we've built positions us well for continued growth throughout the rest of this year and well beyond. I'd like to thank you for your continued support.

我們不僅僅是一家零售商。我們是黑人家庭的社區目的地，提供無人能及的風格、潮流、價值與信任。我對我們的策略以及團隊的執行能力充滿信心。我們所建立的基礎，使我們在今年剩餘時間乃至更長遠的未來，都能持續成長。感謝各位持續的支持。

And now if I could turn it over to Rob for Q&A, please.

接下來，如果可以的話，我把時間交給 Rob 進行問答環節。

(Operator Instructions)

（接線員指示）

Jeremy Hamblin, Craig Allen.

Jeremy Hamblin，Craig Allen。

Thanks, and congratulations on the results and the sustained momentum. I wanted to see if I could get a little bit more granular on the same store sales. And in terms of what you saw in Q2. What portion of that 10% plus comp in the quarter was driven by more transactions versus and then the breakdown on your average ticket of UPTs versus average unit retail?

謝謝，也恭喜你們的成果以及持續的動能。我想更細緻地了解一下同店銷售。就你們在第二季看到的情況而言。本季10%以上的同店成長中，有多少是由交易筆數增加所帶動？另外，你們平均客單的拆分中，UPT（每筆交易件數）與平均單品零售價（AUR）各自的貢獻如何？

Yeah, for sure, Jeremy. Hi, Jeremy. Thank you for the question. In terms of our same store sales growth in the quarter, and it's been fairly consistent for the last several quarters, actually. About half of our growth is coming through increased transaction count. And we view that as a very positive sign, obviously, for the business.

好的，當然可以，Jeremy。嗨，Jeremy。謝謝你的提問。就本季同店銷售成長而言，而且其實過去幾季都相當一致。大約一半的成長來自交易筆數增加。我們認為這顯然是對業務非常正面的訊號。

And as I mentioned in the call, that was also through a non-peak period. Which I think is noteworthy, at a point where the consumer really didn't have a compelling reason to come in, we still maintain nice, strong traffic. And so we're quite pleased with that.

而且如我在電話會議中提到的，那也是在非旺季期間達成的。我認為這點值得注意：在消費者其實沒有特別強烈理由進店的時候，我們仍維持了良好且強勁的客流。因此我們對此相當滿意。

Now, we haven't publicly released all the details around average unit retail and average transaction, but if you think about it this way -- or excuse me, AUR and use for transaction, I mean, but if you think about it this way, about half of the growth is really transaction count and the other half are the components of the shopping basket.

目前我們尚未對外公布平均單品零售價與平均交易的所有細節；不過如果你這樣看——抱歉，我指的是 AUR 以及每筆交易的件數——但如果你這樣看，大約一半的成長來自交易筆數，另一半則來自購物籃的各項組成因素。

Fair enough. And then just in terms of -- it sounds like you've seen a little bit of an acceleration here to start Q3 and you're lapping your toughest compares the year, so quite impressive. I wanted to just understand in terms of category performance where you're seeing that uptick? I know that you've talked quite positively about footwear, men's, juniors, wanted to see if that's potentially the uptick being a result of maybe women's business picking up or any additional color you might share on the momentum?

了解。另外，就——聽起來你們在第三季開局看到一些加速，而且你們正在對比今年最艱難的比較基期，所以相當令人印象深刻。我想了解一下，就品類表現而言，你們在哪些品類看到這個回升？我知道你們對鞋類、男裝、青少年（juniors）談得很正面；我想看看這個回升是否可能是女裝業務回溫所帶動，或你們是否能分享更多關於動能的細節？

Yeah, for sure. Yeah. Thank you, Jeremy. Good catch. We have seen increased momentum in the quarter. As I mentioned, we're looking at about a 25% two-year stack at this stage, which is good. And we've got a lot of quarter to go, so more ahead yet, but the early results are good for back to school for sure.

好的，當然。是的。謝謝你，Jeremy。你觀察得很準。我們確實在本季看到動能提升。如我提到的，目前我們看到兩年疊加（two-year stack）約25%，這很不錯。而且本季還有很長一段時間，所以後面還有更多可觀察，但開學季（back to school）的早期結果確實很好。

Again, the momentum that almost all of our categories experienced in Q2 literally has continued into Q3 and that's noteworthy because again, you're going from a non-peak to a peak period to maintain that growth momentum is quite impressive and of the teams that I called out, our men's team, our kids team and family basics very consistent performers and that has been the case here as well.

同樣地，我們幾乎所有品類在第二季所呈現的動能，確實延續到了第三季；這點值得注意，因為再次強調，從非旺季進入旺季仍能維持成長動能，這相當令人印象深刻。而我先前點名的團隊——男裝團隊、童裝團隊以及家庭基本款（family basics）——一直都是非常穩定的表現者，這次也同樣如此。

I would highlight on your question, we did see a nice step change in our women's business. This is the first quarter that our women's team has been able to deliver trend modules into the stores on a fairly consistent basis. And so we were getting some strong reaction there and it's a little bit more of a balanced assortment, we're enjoying growth in our Missy category and really across the board there. So it's been gratifying to see a nice step change in our women's business as a result of the trend effort.

針對你的問題，我要特別強調的是，我們在女裝業務上確實看到不錯的階段性提升。這是女裝團隊首次能夠相當穩定地把潮流模組（trend modules）導入門市的一季。因此我們獲得了強烈的市場反應，商品組合也更為均衡；我們在 Missy 品類的成長表現不錯，基本上各面向都有成長。因此，很高興看到潮流推動的努力，為女裝業務帶來明顯的階段性提升。

Right. I'll hop out of the queue and let others ask questions. Thank you. Congratulations.

好的。我先退出排隊，讓其他人提問。謝謝。恭喜。

Thanks, Jeremy. Appreciate it.

謝謝你，Jeremy。感謝。

Thank you. At this time, I'll turn the floor back to management for further.

謝謝。此時，我將把時間交回管理層作進一步說明。

All right. Well, I'd like to just thank everybody for your time and attention today and your interest in our brand. And we look forward to updating you Q3 results as we continue here. So thank you very much.

好的。我想感謝各位今天撥冗參與、專注聆聽，以及對我們品牌的關注。我們也期待在後續持續推進的同時，向各位更新第三季的業績結果。非常感謝。

Thank you. This will conclude today's conference. You may disconnect your lines at this time. We thank you for your participation. Have a wonderful day.

謝謝。今天的電話會議到此結束。您現在可以掛斷電話線。感謝您的參與。祝您有美好的一天。