Torrid (CURV)2024-12-11 21:38Financial Performance - Net sales for the three months ended November 2, 2024, were 275.4 million for the same period in 2023[22] - Gross profit for the three months ended November 2, 2024, was 91.5 million and a gross margin of 33.2% for the same period in 2023[22] - The company reported 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 275.4 million for the same period in 2023[62] - Total net sales for the nine months ended November 2, 2024, were 858.4 million for the same period in 2023[62] - Net income for the nine months ended November 2, 2024, was 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 19,306,000 for the nine-month period[124] - Adjusted EBITDA for the three months ended November 2, 2024, was 19,379,000 for the same period last year[124] Assets and Liabilities - Total current assets increased to 179.1 million as of February 3, 2024[18] - Total liabilities decreased slightly to 688.7 million as of February 3, 2024[18] - The company’s accumulated deficit improved to (347.6) million as of February 3, 2024[25] - Cash, cash equivalents, and restricted cash at the end of the period increased to 15,962 thousand year-over-year[32] - Accrued and other current liabilities increased to 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 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 33,730 thousand for the same period in 2023[32] - Net cash used in investing activities decreased to 15.2 million, primarily due to reduced capital expenditures[175] - Net cash used in financing activities increased to 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 71.9 million for the same period in 2023[22] - Share-based compensation expenses decreased from 4,531 thousand in the nine months ended November 2, 2024[32] - Interest expense decreased to 9.8 million in the prior year[155] - Selling, general and administrative expenses rose by 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 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]