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FORWARD-LOOKING STATEMENTS 2 All statements other than historical facts contained in this presentation, including statements regarding the Company’s future financial results and position, business policy and plans, objectives and expectations of management for future operations and capital allocation expectations, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 that are subject to material risks and uncertainties. The words "believe," "may," "could,“ "plans," "estimate," “expects,” "continue," "anticipate," "intend," "expect," “upcoming,” “trend” and similar expressions, as they relate to the Company, are intended to identify forward-looking statements, although not all forward-looking statements contain such language. Statements with respect to earnings, sales or new store guidance are forward-looking statements. Investors are cautioned that any such forward-looking statements are subject to the finalization of the Company’s quarter-end financial and accounting procedures, are not guarantees of future performance or results, and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Actual results or developments may differ materially from those included in the forward-looking statements as a result of various factors which are discussed in our Annual Reports and Quarterly Reports on Forms 10-K and 10-Q, respectively, and any amendments thereto, filed with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, uncertainties relating to general economic conditions, including inflation, energy and fuel costs, unemployment levels, and any deterioration whether caused by acts of war, terrorism, political or social unrest (including any resulting store closures, damage or loss of inventory); or other factors; changes in market interest rates and market levels of wages; the imposition of new taxes on imports, new tariffs and changes in existing tariff rates; the imposition of new trade restrictions and changes in existing trade restrictions; impacts of natural disasters such as hurricanes; uncertainty and economic impact of pandemics, epidemics or other public health emergencies; transportation and distribution delays or interruptions; changes in freight rates; the Company’s ability to attract and retain workers; the Company’s ability to negotiate effectively the cost and purchase of merchandise inventory risks due to shifts in market demand and to manage inventory shrinkage; the Company’s ability to gauge fashion trends and changing consumer preferences; consumer confidence and changes in consumer spending patterns; competition within the industry; competition in our markets; the duration and extent of any economic stimulus programs; changes in product mix; interruptions in suppliers’ businesses; risks related to cybersecurity, data privacy and intellectual property; temporary changes in demand due to weather patterns; seasonality of the Company’s business; the results of pending or threatened litigation; delays associated with building, remodeling, opening and operating new stores; and delays associated with building, and opening or expanding new or existing distribution centers. Any forward- looking statements by the Company, with respect to guidance, the repurchase of shares pursuant to a share repurchase program, or otherwise, are intended to speak only as of the date such statements are made. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company does not undertake to publicly update any forward-looking statements in this presentation or with respect to matters described herein, whether as a result of any new information, future events or otherwise. THE FUTURE OF CITITRENDSICR PRESENTATION
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THE FUTURE OF CITITRENDSICR PRESENTATION THE FUTURE OF
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LEADERSHIP THE FUTURE OF CITITRENDS 4 KEN SEIPEL CHAIRMAN & CEO • Experienced retail turnaround CEO • Track record of significant value creation • Fortune 100 retailers & Private Equity • Individually an ~8% shareholder • Compensation fully aligned with shareholders ICR PRESENTATION
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COMPARABLE STORE SALES GROWTH THE FUTURE OF CITITRENDS 5 • Five consecutive quarters of mid to high- single digit comp growth • Q4 expected to be sixth consecutive quarter • Holiday comp of 9.3%; 16.4% 2-year stack • FY25 2-year comp stack of 13.3% through December QTD Q4 and YTD are through January 3, 2026 ICR PRESENTATION 5.7% 6.4% 9.9% 9.2% 10.8% 9.3% 9.8% 13.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 QTD Q4 '25 YTD '25 YTD '25 2-Yr Stack Comp Store Sales Growth
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• Off-Price Retailer • Apparel, Shoes and Home • African-American Focus • ~$820 million in FY25 Sales • 591 stores • ~12K avg. sq. ft. • 33 states • Neighborhood locations • ~ $45 million EBITDA in 2027 6 CITITRENDS OVERVIEW THE FUTURE OF CITITRENDSICR PRESENTATION
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• High performing off-price retail sector • Focused on urban sense of style, price and trend • High frequency loyal customers • Neighborhood store locations • Strong balance sheet • Tangible path for shareholder value growth DIFFERENTIATED COMPETITIVE POSITION 7 THE FUTURE OF CITITRENDSICR PRESENTATION
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• Supply chain disruptions • High turning inventory • Treasure hunt environment • Scarcity creates frequency • Everyday pricing / exceptional values • Flexibility to adapt • CTRN multiple paths to value creation HIGH PERFORMING OFF-PRICE SECTOR THE FUTURE OF CITITRENDSCY2025E – CY2027E Revenue CAGR CY2025E EBITDA Margin % Enterprise Value / NTM EBITDA Off-Price Retailers Mall-Based Retailers Specialty Retailers Department Stores Off-Price Retailers Mall-Based Retailers Specialty Retailers Department Stores Off-Price Retailers Mall-Based Retailers Specialty Retailers Department Stores 8.7% 3.5% 3.2% (2.0%) 13.5% 11.7% 8.7% 8.1% 14.2x 6.6x 6.2x 3.8x 8 ICR PRESENTATION
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• Balanced 3-tier assortments • Opening price points to emphasize value • Core “better” products with focus on brands and selection • Growth opportunity in “best” with better branded trends at great prices • Extreme value deals – the “treasure in the treasure hunt” PRODUCT STRATEGY 9 THE FUTURE OF CITITRENDS ICR PRESENTATION
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EXTREMELY LOYAL CUSTOMER BASE • African-American Customer • Average age: ~40 years • Multi-generational families • High shopping frequency • All levels of income • Most frequent: $75K - $150K • Large base: $50K - $75K THE FUTURE OF CITITRENDS 10 ICR PRESENTATION
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THE FUTURE OF CITITRENDS BRAND PROMISE STYLES THAT SEE YOU + PRICES THAT AMAZE YOU + TRENDS THAT TELL YOUR STORY VALUE IS NOT JUST PRICE ICR PRESENTATION
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12 THE FUTURE OF CITITRENDS ICR PRESENTATION
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THE FUTURE OF CITITRENDS TRUST - CONNECTION CULTURAL CACHET – STYLE, PRICE, TREND SENSE OF COMMUNITY ICR PRESENTATION
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THE FUTURE OF CITITRENDS NEIGHBORHOOD STORE LOCATION STORELOCATIONSBY STATE Offices New York,NY Savannah,GA 5 1 5 2 3 9 • Store Remodels and Refreshes • Priority on higher sales stores • Sales lift generates return on investments • Component of MSA market share growth plans • Remodeling ~50 stores per year 14 Store Locations In 33 states Distribution Centers Roland,OK Darlington,SC ICR PRESENTATION
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THE FUTURE OF CITITRENDS NEW NEIGHBORHOOD STORE GROWTH PROJECTED YEAR-END STORE COUNT 2024 2025 2026 2027 560 591 590 610 645 590 570 580 600 630 610 620 640 650 660New Stores 2026 2027 & Beyond ~40 New Stores Annually Growth Plans Existing Market Share Backfill Select New Markets 15 Assumes ~5 store closures per year ICR PRESENTATION ~25 New Stores
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NEW STORE DISCIPLINE THE FUTURE OF CITITRENDS 16 Successful New Stores Financial Proforma • Sales Targets • EBITDA Results • Return on Investment ICR PRESENTATION AI Site Tool Selection • Trade Area • Primary Customers • Empirical Data Site Evaluation • Site Characteristics • Deal Negotiation
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THE FUTURE OF CITITRENDS STRONG BALANCE SHEET 2024 2025 2026 2027 $61 $65 ~$65 ~$65 CASH AND CAPEX BY YEAR (M’s) Cash Capex • Balance Sheet is Strong • ~$140M total liquidity • No debt • Capital Allocation • ~$45M in 2026 & 2027 • Growth funded with cash • Liquidity creates flexibility to pursue opportunities 17 ICR PRESENTATION
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THE FUTURE OF CITITRENDS CITITRENDS PROGRESS Clarity • African American Customer • Three-tiered product assortment Consistency • AI Product Allocation • Lower mark-downs / faster inventory turns • Best Practices Focus • KPI Metrics • Compensation aligned to performance 18 QTD Q4 and YTD are through January 3, 2026 ICR PRESENTATION OptimizeExecuteRepair
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THE FUTURE OF CITITRENDS TANGIBLE PATH FOR SHAREHOLDER VALUE GROWTH 19 Strategy is actionable with specific initiatives and measurable results METRIC Sales Gross Profit SG&A Rate EBITDA EBITDA Margin Store Count 2027 TARGET $900M+ 42% 37% $45M+ ~5% 645 GROWTH +$150M +400bps -200bps +$60M +7pts +55 Note: Growth vs. Fiscal 2024 results ICR PRESENTATION
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THE FUTURE OF CITITRENDS TANGIBLE PATH FOR SHAREHOLDER VALUE GROWTH $753 $900M+ $650 $700 $750 $800 $850 $900 $950 2024 2027 Total Sales • Sales Growth • Consistent 3-tiered product assortment • Off-Priced “treasure in the treasure hunt” • Trend Director for styles • Opportunity product categories • Big Men’s / Plus Sizes / Footwear • Extreme value deals 20 ~7% CAGR ICR PRESENTATION
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THE FUTURE OF CITITRENDS TANGIBLE PATH FOR SHAREHOLDER VALUE GROWTH • Gross Profit Growth • AI Product Planning and Allocation • Improved sell-through of product • Reduced mark-downs • Shrinkage improvement technology • Freight efficiency 37% 42% 35% 36% 37% 38% 39% 40% 41% 42% 43% 2024 2027 GROSS PROFIT 21 ~10% CAGR $ ICR PRESENTATION
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THE FUTURE OF CITITRENDS TANGIBLE PATH FOR SHAREHOLDER VALUE GROWTH • EBITDA Growth to $45M+ • Consistent sales growth • Increased gross margin rate • Leveraged SG&A on continued control • EBITDA growth to $45M or more in 2027 • Tangible actions for value creation $(14) $45M + $(20) $(10) $- $10 $20 $30 $40 $50 2024 2027 EBITDA 22 $60M + ICR PRESENTATION
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THE FUTURE OF CITITRENDSICR PRESENTATION THE FUTURE OF