Citi Trends Taps Tech Founder for Board, Signals Digital Growth Strategy

SAVANNAH, GA – February 20, 2026 – Citi Trends, Inc. (NASDAQ: CTRN) is charting a new course in its leadership, signaling a deeper push into digital modernization and long-term growth with a significant board transition announced this week. The off-price retailer, a staple for apparel and home goods in Black communities across the U.S., has appointed technology entrepreneur and investor Benjamin Faw to its Board of Directors. Faw will immediately step into the crucial role of Chair of the Finance Committee.

The move coincides with the departure of Wes Calvert, who is stepping down from the board after a distinguished tenure, and the extension of a key cooperation agreement with activist investor Fund 1 Investments, LLC. These coordinated changes suggest a strategic alignment between management, the board, and major shareholders on the company's future direction, which is increasingly focused on technology, financial discipline, and capturing a larger share of the booming off-price retail market.

A Strategic Pivot to Digital and Modernization

The appointment of Benjamin Faw is the clearest indicator of Citi Trends' commitment to its modernization strategy. While Wes Calvert was lauded for his traditional financial oversight, Faw brings a distinctly different and forward-looking skill set. A graduate of West Point and Harvard Business School, Faw's career is rooted in technology and entrepreneurship. He is the co-founder of BestReviews, a product review startup acquired for $110 million, and currently serves as CEO of AdVon Commerce, an e-commerce software company. His experience is heavily concentrated in value creation for consumer-facing businesses through digital and technological innovation.

Ken Seipel, Chairman and Chief Executive Officer, highlighted this strategic fit in the company's announcement. “His digital expertise, investor mindset, and disciplined approach to capital allocation align well with CITITRENDS’ continued modernization and long-term growth strategy,” Seipel stated. Faw himself expressed his enthusiasm, saying, “I am honored to join the CITITRENDS Board at such a pivotal time.”

Faw’s arrival comes as Citi Trends accelerates several technology-driven initiatives. The company is in the process of a company-wide rollout of a new AI-based merchandise allocation system, which is expected to optimize inventory, reduce aged stock, and ensure fresher assortments in its 590 stores. Faw’s expertise in leveraging data and technology for consumer businesses will be invaluable as the company refines this system and explores further AI applications in areas like loss prevention and store operations.

Shareholder Harmony and Governance Stability

Beyond the leadership transition, the company's decision to extend its cooperation agreement with Fund 1 Investments for another year provides a critical layer of stability. Fund 1, which holds a significant stake in the retailer, began its relationship as an activist investor, pushing for board changes in early 2024 to enhance shareholder value. Faw's appointment to the board was made pursuant to the replacement rights of Fund 1 under this very agreement.

The extension, including its standstill provisions, transforms a potentially adversarial dynamic into a collaborative partnership. It signals that the activist fund is now aligned with the current management and strategy, providing the company with the runway to execute its long-term plan without the distraction of a proxy battle. This harmony is a bullish signal for the market, reflecting confidence in the path forward.

“We appreciate the ongoing dialogue and engagement with Fund 1 and view the extension of the cooperation agreement as a positive step that reflects confidence in our strategy, governance, and execution,” Seipel commented. This sentiment was echoed by Jonathan Lennon, Founder of Fund 1, who affirmed his firm’s confidence in the company’s leadership and its “ability to create long-term value for shareholders.” Following the changes, the board will consist of eight directors, seven of whom are independent, reinforcing a commitment to strong corporate governance.

Building on a Foundation of Financial Discipline

The strategic pivot to digital is being built upon a newly solidified financial foundation, a legacy of the outgoing Finance Chair, Wes Calvert. He was praised by the company for providing “strong financial oversight, disciplined capital allocation guidance, and steady leadership” during a critical turnaround period. Reflecting on his service, Calvert noted, “It has been a privilege to serve on the CITITRENDS Board and to chair the Finance Committee during an important phase of the Company’s evolution.”

That evolution is evident in the company's recent performance. Citi Trends has posted five consecutive quarters of strong comparable store sales growth, with a 10.8% increase in the most recent quarter. The company is on track for a full-year 2025 EBITDA between $10 million and $12 million, a dramatic improvement over the prior year. This financial turnaround, achieved through disciplined inventory management, supply chain improvements, and a focus on product value, has provided the stability needed for the next phase of growth.

Faw inherits a finance committee that has successfully navigated the company from a repair phase to an execution phase. The long-term financial targets are ambitious: reaching $900 million or more in sales and an EBITDA of $45 million or more by 2027. Achieving these goals will require not only maintaining the current discipline but also making savvy investments in growth initiatives, a mandate that fits squarely within Faw's expertise.

Navigating a Growing Off-Price Market

Citi Trends' internal strategies are well-timed to capitalize on favorable external market trends. The off-price retail sector is thriving, with some analysts projecting the global market to grow from around $270 billion in 2026 to over $376 billion by 2035. This growth is fueled by increasingly value-conscious consumers seeking branded products at a discount, a trend exacerbated by recent inflationary pressures.

To capture this demand, Citi Trends is implementing a multi-pronged strategy. The company is aggressively remodeling its store fleet, with plans to update approximately 60 locations in fiscal 2025 to improve the customer experience. It is also re-accelerating store expansion, with plans to open 25 new stores in 2026 and at least 40 per year thereafter, aiming for a total of 650 stores by the end of 2027. This physical expansion, combined with the new AI-driven inventory system, is designed to ensure the right products are in the right stores to meet the specific tastes of its core demographic of Black families.

With a stable governance structure, a clear strategic alignment with its major shareholder, and new leadership equipped for a digital-first retail landscape, Citi Trends appears poised to not only participate in the off-price market's growth but to leverage its unique market position and modernized operations to drive significant value in the years ahead.