Financial Data and Key Metrics Changes - For Q4 2024, the company reported sales of $275.6 million, a decrease from $293.5 million in the previous year, but an increase of 1.4% when excluding the impact of the 53rd week in fiscal 2023 [31][32] - Adjusted EBITDA increased to $16.7 million from $16.4 million year-over-year, with an adjusted EBITDA margin expanding by 50 basis points to 6.1% [35][36] - The company ended the quarter with $48.5 million in cash, a significant increase from $11.7 million a year ago, and total liquidity stands at $158 million [27][37] Business Line Data and Key Metrics Changes - Comparable sales were down 0.8% for the quarter, but there was a positive response in apparel, particularly in denim, non-denim bottoms, and dresses, which saw high demand [12][32] - The company ended the year with inventory up 4%, primarily due to higher in-transit levels, but down 18% on a two-year basis [13][38] Market Data and Key Metrics Changes - The company experienced some choppiness in business during early weeks of the quarter due to macroeconomic uncertainty and adverse weather, but saw a trend line improvement as the quarter progressed [9][10] - The new sub-brands are attracting younger customers, with new buyers averaging in their mid-30s, indicating a shift in customer demographics [20][100] Company Strategy and Development Direction - The company is focused on three strategic priorities: enhancing product assortment, driving customer growth, and executing a store optimization plan [15][25] - The strategy includes closing underperforming locations while selectively opening new stores in high-performing markets, with plans to close an additional 40 to 50 stores in fiscal 2025 [25][42] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the business, noting improvements in traffic and core categories, while acknowledging the uncertain consumer environment [10][54] - For fiscal 2025, the company expects full-year sales to range between $1.080 billion and $1.100 billion, with adjusted EBITDA projected between $100 million and $110 million [44][45] Other Important Information - The company is reallocating marketing investments to support sub-brand launches and model search initiatives, indicating a strategic shift in marketing focus [46] - The company has a flexible sourcing structure and is expanding into new markets to mitigate tariff impacts [81][82] Q&A Session Summary Question: What are the latest thoughts on the health of the Torrid consumer? - Management noted that the fundamental strength of the Torrid customer remains intact, with positive traffic trends but more conservative conversion rates [50][54] Question: Can you quantify the impact of the 40 to 50 additional store closures this year? - The majority of closures will happen in Q4, with benefits expected to flow through financials in the following year [56][59] Question: Do you anticipate this being a prolonged campaign of closings? - Management indicated that while there will be opportunities for closures, it is not expected to be a prolonged project [62][64] Question: What is your guidance embedding on the tariff impact of the year? - The guidance includes all known tariffs, with a flexible sourcing structure to navigate potential changes [81][82] Question: How do you think about the cadence of gross margin and SG&A throughout the year? - SG&A is expected to be higher in the first half due to shifted marketing expenses, but overall should remain consistent with the prior year [111]

Torrid (CURV) Q4 2025 Earnings Call March 20, 2025 04:30 PM ET Company Participants Chinwe Abaelu - SVP & CAOLisa Harper - CEO & DirectorPaula Dempsey - Chief Financial OfficerBrooke Roach - Vice President - Equity ResearchAshlee Wheeler - Chief Strategy & Planning OfficerCorey Tarlowe - SVP - Equity ResearchDana Telsey - CEO and Chief Research Officer Conference Call Participants Dylan Carden - Research AnalystKatherine Delahunt - Analyst Operator Greetings, and welcome to the Torrid Holdings Incorporated ...

Core Viewpoint - Demand trends for Torrid Holdings (NYSE: CURV) have been poor, raising questions about the company's positioning as a value retailer [1]. Company Analysis - Torrid Holdings is perceived as a value company, yet it is experiencing disappointing demand trends [1]. - The investment approach focuses on identifying undervalued companies with long-term growth potential, emphasizing the importance of buying quality companies at a discount [1]. Industry Context - The broader implications of poor demand trends in the retail sector may affect investor sentiment and market positioning for companies like Torrid Holdings [1].

Financial Performance - Net sales for the three months ended November 2, 2024, were $263.8 million, a decrease of 4.3% compared to $275.4 million for the same period in 2023[22] - Gross profit for the three months ended November 2, 2024, was $95.2 million, representing a gross margin of 36.1%, compared to $91.5 million and a gross margin of 33.2% for the same period in 2023[22] - The company reported a net loss of $1.2 million for the three months ended November 2, 2024, compared to a net loss of $2.7 million for the same period in 2023[22] - Total net sales for the three months ended November 2, 2024, were $263.8 million, a decrease of 4.6% compared to $275.4 million for the same period in 2023[62] - Total net sales for the nine months ended November 2, 2024, were $828.2 million, down 3.5% from $858.4 million for the same period in 2023[62] - Net income for the nine months ended November 2, 2024, was $19,306 thousand, compared to $15,689 thousand for the same period in 2023, representing a 23% increase[32] - Net loss for the three months ended November 2, 2024, was $1,194,000, compared to a net income of $19,306,000 for the nine-month period[124] - Adjusted EBITDA for the three months ended November 2, 2024, was $19,584,000, slightly up from $19,379,000 for the same period last year[124] Assets and Liabilities - Total current assets increased to $222.6 million as of November 2, 2024, compared to $179.1 million as of February 3, 2024[18] - Total liabilities decreased slightly to $682.3 million as of November 2, 2024, from $688.7 million as of February 3, 2024[18] - The company’s accumulated deficit improved to $(328.3) million as of November 2, 2024, from $(347.6) million as of February 3, 2024[25] - Cash, cash equivalents, and restricted cash at the end of the period increased to $44,352 thousand from $15,962 thousand year-over-year[32] - Accrued and other current liabilities increased to $116.7 million as of November 2, 2024, from $107.8 million as of February 3, 2024[57] - The total term loan outstanding, net of unamortized original issue discount and debt financing costs, was $276.4 million as of the end of the third quarter of fiscal year 2024[77] - As of the end of Q3 FY 2024, the total liability for income tax associated with unrecognized tax benefits was $2.6 million, which includes interest and penalties[91] Cash Flow - Net cash provided by operating activities for the nine months ended November 2, 2024, was $65,366 thousand, significantly higher than $33,730 thousand for the same period in 2023[32] - Net cash used in investing activities decreased to $12.6 million from $15.2 million, primarily due to reduced capital expenditures[175] - Net cash used in financing activities increased to $20.4 million from $16.3 million, mainly due to higher net repayments related to the ABL Facility[177] Expenses - Selling, general, and administrative expenses for the three months ended November 2, 2024, were $74.9 million, an increase of 4.2% compared to $71.9 million for the same period in 2023[22] - Share-based compensation expenses decreased from $5,981 thousand in the nine months ended October 28, 2023, to $4,531 thousand in the nine months ended November 2, 2024[32] - Interest expense decreased to $8.8 million for the three months ended November 2, 2024, down from $9.8 million in the prior year[155] - Selling, general and administrative expenses rose by $15.5 million, or 7.3%, to $228.2 million, with expenses as a percentage of net sales increasing to 27.5% from 24.8%[162] Marketing and Sales Strategy - The company aims to maintain reasonable marketing costs relative to net sales and profit to enhance customer acquisition and retention[129] - The company plans to continue investing in brand awareness and customer engagement through targeted marketing efforts[134] - The strategy includes introducing new merchandise approximately 16 times per year to keep customers engaged and attract new ones[135] Taxation - The effective tax rate for the nine-month period ended November 2, 2024, was 28.0%, a decrease from 34.8% for the same period in 2023[90] - Provision for income taxes was $7.5 million, with an effective tax rate of 28.0%, down from $8.4 million and 34.8% in the prior year[167] Workforce and Compliance - The company implemented a strategic reduction of approximately 5% of its workforce in July 2023, recognizing $1.5 million in related expenses[169] - The company has certified compliance with the Sarbanes-Oxley Act of 2002 for both the Principal Executive Officer and Principal Financial Officer[199] Leadership - Lisa Harper serves as the Chief Executive Officer and Director, while Paula Dempsey is the Chief Financial Officer[201]

Core Insights - Torrid Holdings Inc. reported third-quarter fiscal 2024 results, with both revenue and earnings missing the Zacks Consensus Estimate, leading to a revised guidance for future performance [1][7]. Financial Performance - The company posted a loss of 1 cent per share, missing the consensus estimate of earnings of 3 cents, but improved from a loss of 3 cents per share in the same quarter last year [2]. - Net sales were $263.8 million, a decline of 4.2% year over year, and below the consensus mark of $283 million. Comparable sales decreased by 6.5% year over year [3]. - Gross profit was $95.2 million, up 4% from $91.5 million in the prior year, with gross margin expanding by 285 basis points to 36.1% due to lower product costs and increased sales of regular-priced products [3]. Expenses and Profitability - Selling and administrative expenses rose by 4.2% to $74.9 million, with these expenses as a percentage of net sales increasing by 230 basis points to 28.4% due to performance bonuses [4]. - Adjusted EBITDA was $19.6 million, a slight increase of 1.1% from $19.4 million in the previous year, with the adjusted EBITDA margin expanding by 40 basis points to 7.4% [5]. Store Operations - The company opened two new Torrid stores and closed four, resulting in a total of 655 stores at the end of the quarter [5]. Financial Health - At the end of the quarter, cash and cash equivalents stood at $44 million, with total liquidity of $151.8 million. The total stockholders' deficit was $189.3 million [6]. Future Outlook - For the fourth quarter, Torrid anticipates net sales between $255 million and $270 million, down from $293.5 million in the previous year, and expects adjusted EBITDA of $9 million to $15 million compared to $16.4 million last year [7]. - For fiscal 2024, the company revised its net sales expectation to a range of $1.083 billion to $1.098 billion, down from $1.135 billion to $1.145 billion, and adjusted EBITDA is now expected to be between $101 million and $107 million [8]. - Capital expenditure is projected at $20 million to $25 million, focusing on infrastructure, technology investments, and new store openings [9]. - The company plans to open 12 to 16 new Torrid stores while closing 30 to 40 locations as part of its store fleet optimization strategy [10].

Financial Data and Key Metrics Changes - Net sales for Q3 2024 were $263.8 million, down from $275.4 million in the previous year, representing a decline of 6.5% in comparable sales [44] - Regular price comparable sales increased by 1%, while clearance sales saw a significant decline of 47% [31][44] - Gross profit grew by 4% to $95.2 million, with gross margin expanding by 285 basis points to 36.1% due to reduced product costs and increased sales of regular price products [44][45] - The company ended the quarter with $44 million in cash, an increase of $28 million compared to the previous year, and reduced total debt to $293 million from $314 million [10][49] Business Line Data and Key Metrics Changes - The denim category continued to show positive comparable sales driven by freshness and innovation, while the core collection faced softness due to lack of innovation [10][34] - Intimate apparel foundations categories delivered strong regular price comps, indicating a positive response to newness and innovation [35] Market Data and Key Metrics Changes - Traffic was down mid-single digits for the quarter, impacted by severe hurricanes and consumer hesitancy prior to the election [12][33] - The company estimated that hurricanes impacted full-price comps by 100 basis points for the quarter [13][34] Company Strategy and Development Direction - The company is focusing on increasing product newness and innovation to meet changing customer preferences, with plans to launch new sub-brands and capsule collections [15][19] - A strategic shift away from clearance sales is being implemented, with expectations for clearance sales to return to normalized levels in Q1 2025 [31][117] - The company aims to optimize its store footprint by closing 30 to 40 stores by the end of fiscal 2024, transitioning to a more balanced mix of outdoor shopping centers and enclosed malls [50][52] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q3 results but remains confident in long-term strategies for growth and product innovation [8][31] - The company anticipates a return to positive comparable sales growth in 2025, driven by new product launches and improved operational efficiencies [57][120] Other Important Information - The company has made significant progress in inventory management, ending the quarter with 19% less inventory year-over-year [43][49] - New inventory planning and allocation systems are being implemented to enhance product offerings and customer experience [22][40] Q&A Session Summary Question: Can you quantify the proportion of newness in the assortment planned for the first half of 2025? - Management did not provide an exact percentage but emphasized that all categories are being impacted and updated to meet customer demand for newness [61] Question: What is the outlook for EBITDA margin expansion? - Management indicated that EBITDA margins could expand even without comparable sales growth, due to operational efficiencies and store optimization [72] Question: How did macro and micro factors affect business performance? - Management noted significant macro impacts, including weather and election-related consumer behavior changes, which affected traffic and sales [80][84] Question: What is the strategy regarding clearance sales? - Clearance sales are expected to return to normalized levels in Q1 2025, with a focus on healthier inventory management moving forward [117][120] Question: How will new product assortments be priced? - New sub-brands will feature a mix of price points, maintaining a similar average to current offerings while expanding the range [96] Question: What is the company's approach to marketing for new capsules? - The company plans to increase marketing spend, particularly in digital and influencer campaigns, to support new product launches and customer acquisition [103]

Torrid Holdings (CURV) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of $0.03. This compares to loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -133.33%. A quarter ago, it was expected that this women's apparel retailer would post earnings of $0.07 per share when it actually produced earnings of $0.08, delivering a surprise of 14.29%.Over the last four quarters, the company ...

Exhibit 99.1 Torrid Reports Third Quarter Fiscal 2024 Results • Delivered Net Sales of $263.8 million • Generated gross margin expansion of 285 basis points to 36.1% • Net Loss of $1.2 million compared to Net Loss of $2.7 million last year • Updated 2024 Net Sales and Adjusted EBITDA Outlook (1) CITY OF INDUSTRY, Calif. – December 3, 2024 – Torrid Holdings Inc. ("Torrid" or the "Company") (NYSE: CURV), a direct-to-consumer apparel, intimates, and accessories brand in North America for women sizes 10 to 30, ...

Key TakeawaysCURV stock gained 19.1% this month, compared to the 5.2% rise of the entire retail apparel industry.As a leader in plus-size fashion, Torrid has shown resilience and adaptability in a challenging market.Register now to see our 7 Best Stocks for the Next 30 Days report - free today!Torrid Holdings Inc. (CURV) has captured the market’s attention with an impressive 19.1% gain over the past month. This rally, driven by optimism surrounding the company’s strategic focus and operational strengths, ha ...

The market expects Torrid Holdings (CURV) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended October 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on December 3, 2024, might help the stock move higher if these key numbe ...