Group 1 - Torrid Holdings Inc. (NYSE: CURV) stock has shown resilience after facing significant sales pressure, previously appearing to trend towards $1 or less [1] - The stock has been characterized as a good trading opportunity for both long and short positions, indicating volatility and potential for profit [1] Group 2 - The company has been identified as thriving during market selloffs, suggesting a strategic advantage in navigating challenging market conditions [1]

分组1 - Torrid Holdings reported a quarterly loss of $0.03 per share, better than the Zacks Consensus Estimate of a loss of $0.07, and an improvement from a loss of $0.04 per share a year ago, resulting in an earnings surprise of 57.14% [1] - The company posted revenues of $275.56 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 4.16%, but down from $293.54 million in the same quarter last year [2] - Torrid Holdings has outperformed the S&P 500, with shares increasing about 7.1% since the beginning of the year, while the S&P 500 declined by 3.5% [3] 分组2 - The earnings outlook for Torrid Holdings is uncertain, with current consensus EPS estimates at $0.14 for the coming quarter and $0.24 for the current fiscal year, alongside revenues of $276.69 million and $1.1 billion respectively [7] - The estimate revisions trend for Torrid Holdings is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] - The Retail - Apparel and Shoes industry, to which Torrid Holdings belongs, is currently ranked in the bottom 47% of over 250 Zacks industries, suggesting potential challenges ahead [8]

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, ...