Citi Trends, Inc. (Nasdaq:CTRN) operates as a discount retailer of fashion apparel, accessories, and home goods for all members of the family. Their selling point is that they provide families with the latest trends for up to 50% less than other stores. In doing so they believe that they can better serve low-income communities by providing a variety of fashionable options for affordable prices.
Comps: Zumiez Inc. (Nasdaq:ZUMZ), Designer Brands Inc. (NYSE:DBI)
It is important to note that Citi Trends is the only discount retailer and does not have the market capitalization of either of these companies. With that in mind, they exhibited higher earnings per share and lower price to earnings than both. In addition, Citi Trends demonstrated a 46% return on equity, which is unmatched by either Zumiez or Designer Brands. If we just look in comparison to Designer Brands, we see more favorable debt ratios from Citi Trends.