Financial Data and Key Metrics Changes - Net sales grew 2% to $341 million compared to $333 million last year, with comparable sales up 1% [25][32] - Gross margin rate was 34.9%, down from 45% in the same quarter last year, primarily due to higher discounts and inflationary pressures [10][27] - Adjusted EBITDA was $52 million, or 15.3% of net sales, compared to $87 million, or 26% of net sales in the second quarter of 2021 [33] Business Line Data and Key Metrics Changes - The company focused on clearing seasonal inventory, leading to higher promotions and markdowns that impacted gross margin [10][27] - The launch of the new "Studio by Torrid" workwear line was highlighted as a significant product introduction [16][71] Market Data and Key Metrics Changes - The company experienced a decrease in year-over-year traffic due to macroeconomic challenges, including higher fuel prices and inflation [8][49] - Online traffic increased, with improved conversion rates noted during the quarter [8][50] Company Strategy and Development Direction - The company aims to enhance promotional and marketing strategies to balance margin and sales growth [7][12] - Plans to refine marketing strategies include targeting lapsed customers and adjusting promotional discounts based on inventory and demand [15][46] - The company is committed to expanding its store base, with plans to open approximately 34 stores for the year [36][64] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second half of the year, projecting sales to be between $290 million and $305 million for Q3 [37] - The company is focused on improving inventory levels and expects to see benefits from recent operational changes in the upcoming quarters [23][74] Other Important Information - The company successfully launched a new ERP system and upgraded its distribution center, doubling its capacity [11][22] - Total debt at the end of the quarter was $335 million, with a net debt to adjusted EBITDA ratio of 1.7 times [35] Q&A Session Summary Question: Sales guidance for the back half of the year - Management indicated that the guidance is conservative due to the macroeconomic environment, projecting flat trends compared to the first half [42] Question: Pricing and promotional strategies - Management plans to optimize promotions based on specific product categories rather than blanket discounts, aiming to improve gross margins [45][46] Question: Monthly sales trends during the quarter - Management noted that June's high gas prices impacted traffic, but online traffic showed positive trends [49][50] Question: Merchandise strategy and assortment appeal - Management confirmed a broader assortment to meet customer needs, focusing on flexibility and alternatives in product offerings [54] Question: Store count and growth opportunities - Management emphasized the profitability of the store fleet and its role in customer acquisition, indicating plans for strategic store openings [63][64] Question: Margin drivers and holiday season preparations - Management highlighted that margin opportunities in the back half of the year will depend on inventory levels and product desirability [72][76]

Part I - Financial Information [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28unaudited%29) The unaudited financial statements for July 30, 2022, reflect a slight asset decrease, reduced liabilities, and improved stockholders' deficit, with modest net sales growth but declining net income and operating cash flow due to margin compression and prior-year adjustments [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of July 30, 2022, total assets slightly decreased to $556.6 million, total liabilities reduced to $795.2 million, and the stockholders' deficit improved to $(238.7) million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | July 30, 2022 | January 29, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $22,985 | $29,025 | | Inventory | $180,738 | $170,608 | | Total current assets | $223,274 | $220,926 | | Total assets | $556,550 | $578,501 | | **Liabilities & Stockholders' Deficit** | | | | Total current liabilities | $279,714 | $297,013 | | Term loan (noncurrent) | $312,769 | $320,841 | | Total liabilities | $795,206 | $836,820 | | Total stockholders' deficit | $(238,656) | $(258,319) | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Q2 2022 net sales increased 2.4% to $340.9 million, but gross profit fell significantly due to margin contraction, resulting in a 41.5% decrease in net income to $22.7 million Q2 Fiscal 2022 vs Q2 Fiscal 2021 (in thousands, except per share data) | Metric | Q2 2022 (ended Jul 30) | Q2 2021 (ended Jul 31) | Change | | :--- | :--- | :--- | :--- | | Net sales | $340,876 | $332,870 | +2.4% | | Gross profit | $118,846 | $149,720 | -20.6% | | Income from operations | $39,416 | $(40,049) | N/A | | Net income | $22,710 | $38,787 | -41.5% | | Diluted EPS | $0.22 | $0.35 | -37.1% | Six Months Fiscal 2022 vs Six Months Fiscal 2021 (in thousands, except per share data) | Metric | H1 2022 (ended Jul 30) | H1 2021 (ended Jul 31) | Change | | :--- | :--- | :--- | :--- | | Net sales | $669,285 | $658,617 | +1.6% | | Gross profit | $243,992 | $294,652 | -17.2% | | Income from operations | $79,157 | $(14,555) | N/A | | Net income | $46,776 | $51,712 | -9.5% | | Diluted EPS | $0.44 | $0.47 | -6.4% | - A significant factor in prior year's Q2 results was a **$179.0 million SG&A expense**, including substantial share-based compensation, leading to an operating loss, contrasting with Q2 2022's **$65.9 million SG&A** and positive operating income[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations for H1 2022 significantly decreased to $44.3 million, primarily due to lower non-cash add-backs and working capital changes, while financing activities focused on share repurchases Six-Month Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended Jul 30, 2022 | Six Months Ended Jul 31, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $44,293 | $106,478 | | Net cash used in investing activities | $(11,444) | $(5,891) | | Net cash used in financing activities | $(38,826) | $(172,954) | | **Decrease in cash** | **$(5,984)** | **$(72,450)** | - Financing activities in the first six months of 2022 were dominated by **$31.7 million in common stock repurchases** and **$13.1 million in principal payments** on the term loan, contrasting with 2021's **$300.0 million capital distribution** and significant debt refinancing[27](index=27&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's business, accounting policies, and financial statement line items, including revenue disaggregation, related-party transactions, debt structure, and share repurchase program specifics - The company identifies as a single reportable segment, combining its e-Commerce and physical store operations, as the Chief Executive Officer evaluates performance and allocates resources on a consolidated basis[41](index=41&type=chunk) Revenue by Product Category (in thousands) | Category | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | | :--- | :--- | :--- | :--- | :--- | | Apparel | $310,827 | $310,976 | $602,480 | $612,093 | | Non-apparel | $30,049 | $21,894 | $66,805 | $46,524 | | **Total net sales** | **$340,876** | **$332,870** | **$669,285** | **$658,617** | - The company has significant related-party transactions, including purchasing merchandise from MGF Sourcing US, LLC, an entity controlled by Sycamore affiliates, with purchases totaling **$36.1 million** in the first six months of 2022[73](index=73&type=chunk) - As of July 30, 2022, the company had **$336.9 million in principal outstanding** on its term loan and **$6.0 million drawn** on its revolving credit facility, with **$138.5 million availability** under the revolving facility[78](index=78&type=chunk)[93](index=93&type=chunk) - Under a share repurchase program authorized in December 2021, the company repurchased **4,464,367 shares** for a total cost of **$31.7 million** during the first six months of 2022, with approximately **$44.9 million remaining available**[126](index=126&type=chunk)[127](index=127&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q2 net sales growth to transaction increases, offset by lower average values, while gross margin significantly declined due to promotions and costs; SG&A decreased dramatically from reduced share-based compensation, and Adjusted EBITDA fell to $52.1 million [Key Financial and Operating Metrics](index=29&type=section&id=Key%20Financial%20and%20Operating%20Metrics) Q2 2022 comparable sales grew 1%, a sharp deceleration from 30% prior year, with 627 stores and Adjusted EBITDA significantly declining to $52.1 million Key Metrics Comparison | Metric | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | | :--- | :--- | :--- | :--- | :--- | | Number of stores | 627 | 608 | 627 | 608 | | Comparable sales | 1% | 30% | 0% | 60% | | Net income (in thousands) | $22,710 | $38,787 | $46,776 | $51,712 | | Adjusted EBITDA (in thousands) | $52,088 | $86,516 | $103,867 | $162,227 | [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q2 2022 net sales increased 2.4% to $340.9 million, but gross profit declined 20.6% due to promotions and higher costs, while SG&A expenses dropped 63.2% from reduced share-based compensation - **Q2 Gross Profit** decreased by **$30.9 million**, primarily due to a **$28.9 million decrease in merchandise margin**, with the gross margin rate falling **10.1 percentage points to 34.9%** due to promotions, higher product costs, and e-Commerce shipping[168](index=168&type=chunk) - **Q2 SG&A** decreased by **$113.1 million**, mainly due to a **$112.8 million reduction in share-based compensation expense**, partially offset by a **$5.4 million increase in payroll costs**[169](index=169&type=chunk) - **H1 Gross Profit** decreased by **$50.7 million**, with a **$48.1 million decrease in merchandise margin** being the primary driver, and the gross margin rate falling **8.3 percentage points to 36.5%**[177](index=177&type=chunk) - **H1 SG&A** decreased by **$155.6 million**, driven by a **$150.1 million reduction in share-based compensation** and a **$13.4 million decrease in performance bonuses**[178](index=178&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary liquidity sources are cash from operations and its ABL facility, which had $138.5 million available; H1 2022 operating cash flow decreased to $44.3 million, with cash used for capital expenditures and share repurchases - The company believes cash from operations and availability under its credit facility will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months[183](index=183&type=chunk) Six-Month Cash Flow Analysis (in thousands) | Activity | Six Months Ended Jul 30, 2022 | Six Months Ended Jul 31, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $44,293 | $106,478 | | Net cash used in investing activities | $(11,444) | $(5,891) | | Net cash used in financing activities | $(38,826) | $(172,954) | - The decrease in operating cash flow was primarily due to a significant decrease in the non-cash share-based compensation add-back and a decrease in accrued liabilities compared to the prior year[186](index=186&type=chunk) - Net cash used in financing activities decreased significantly year-over-year because the prior period included a **$300.0 million capital distribution** and major debt refinancing, whereas the current period's primary use was **$31.7 million for stock repurchases**[191](index=191&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk profile has not materially changed from the disclosures in its Annual Report on Form 10-K for the fiscal year ended January 29, 2022 - There have been no material changes to the company's market risk profile since its last annual report[194](index=194&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and Chief Accounting Officer, concluded the company's disclosure controls and procedures were effective as of July 30, 2022, with no material changes in internal control over financial reporting during the quarter - The CEO and Chief Accounting Officer concluded that the company's disclosure controls and procedures are effective as of the end of the reporting period[195](index=195&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[196](index=196&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings but does not anticipate any material adverse effect on its financial condition or results - The company is not currently party to any legal proceedings that are expected to have a material adverse effect on the business[199](index=199&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended January 29, 2022 - No material changes to risk factors have occurred since the filing of the last Annual Report on Form 10-K[200](index=200&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 1,545,811 shares for $5.72 per share during Q2 2022 under its $100.0 million program, with $44.9 million remaining available Share Repurchases for Q2 2022 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | May 1 - May 28 | 1,107,306 | $5.72 | | May 29 - July 2 | 438,505 | $5.71 | | July 3 - July 30 | — | N/A | | **Total** | **1,545,811** | **$5.72** | - As of July 30, 2022, approximately **$44.9 million** remained authorized for future repurchases under the existing program[201](index=201&type=chunk)

Financial Data and Key Metrics Changes - Net sales for Q1 2022 were $328 million, a 1% increase year-over-year and a 30% increase compared to pre-pandemic 2019 [8][22] - Adjusted EBITDA was $52 million, representing a margin of 15.8% of sales, exceeding guidance [8][26] - Gross profit was $125 million, or 38.1% of net sales, down from 44.5% in the previous year due to higher discounts and increased product and transportation costs [22][26] Business Line Data and Key Metrics Changes - Comparable sales declined 2% year-over-year, but adjusting for event and shipment timing, net sales growth would have been 6% [22][23] - The Curve business has normalized growth, with no longer expecting to reach $500 million in sales by 2023, but plans to open up to 10 standalone Curve stores [13][14] Market Data and Key Metrics Changes - The customer demographic has a household income of approximately $85,000, indicating resilience in shopping patterns [35] - The company is seeing positive traffic trends in stores, which remain the primary vehicle for customer acquisition [12][46] Company Strategy and Development Direction - The company aims to enhance promotional and marketing strategies to balance margin and sales growth, focusing on product franchises and launches [9][10] - Plans to develop a more efficient organization by realigning resources and investing in technology to support e-commerce and order fulfillment [16][55] - The company is committed to sustainable growth in both its core business and Curve, with a focus on innovative product launches [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's ability to deliver sustainable and profitable growth despite macroeconomic headwinds [19][30] - The company anticipates net sales for Q2 2022 to be between $350 million and $360 million, with adjusted EBITDA expected between $53 million and $58 million [30][31] Other Important Information - The company ended the quarter with $25 million in cash and cash equivalents, and total liquidity of $145 million [27] - Inventory at the end of the quarter was $179 million, up from $112 million the previous year, with plans to better position inventory levels going into the second half of the year [28][29] Q&A Session Summary Question: Resilience of the Torrid customer - Management noted that the customer demographic is resilient, with a stable shopping pattern and higher household income contributing to stability [35] Question: Marketing and promotional strategy adjustments - Management indicated that there will not be a sales reset but a more surgical approach to promotions, focusing on product benefits and storytelling [38][40] Question: Performance of the Curve business - Management clarified that while there are challenges in certain categories, they remain optimistic about the long-term potential of Curve and are focusing on profitable growth [42][48] Question: Gross margin expectations - Management expects more promotions in the short term but anticipates a moderation in gross margin in the back half of the year [50] Question: Efficiency and resource allocation - Management emphasized the importance of investing in infrastructure and technology to support long-term growth while maintaining marketing investments to build a high-quality customer file [53][56] Question: Pricing strategy - Management believes there is room to increase prices in certain categories while ensuring the value proposition remains strong [69]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-40571 TORRID HOLDINGS INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Securities registered pursuant to Section 12(b) of the Act: FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 29, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-40571 TORRID HOLDINGS INC. (Exact name of registrant as specified in its chart ...

Torrid Holdings Inc. (NYSE:CURV) Q4 2021 Earnings Conference Call March 17, 2022 4:30 PM ET Company Participants Jean Fontana - ICR Liz Muñoz - Chief Executive Officer George Wehlitz - Chief Financial Officer Conference Call Participants Mark Altschwager - Baird Oliver Chen - Cowen and Company Brooke Roach - Goldman Sachs Kimberly Greenberger - Morgan Stanley Dana Telsey - Telsey Advisors Operator Greetings. Welcome to Torrid Holdings Incorporated Fourth Quarter Fiscal 2021 Earnings Call. At this time, all ...

Financial Data and Key Metrics Changes - Net sales grew 13% year-over-year to $306 million, and increased 19% compared to 2019 [11][45] - Adjusted EBITDA was $55 million, up from $31 million last year, with an adjusted EBITDA margin of 18%, an increase of nearly 700 basis points [12][52] - Gross profit was $125 million, representing 40.9% of net sales, compared to 35.4% last year [47][48] - Net loss for the quarter was $59 million, or $0.54 per share, compared to net income of $4 million last year [54] Business Line Data and Key Metrics Changes - Comparable sales increased by 14%, marking the 37th positive comp in the last 39 quarters [11] - The Curve business saw significant growth, with marketing campaigns driving sales in the bra category [16][18] - Strength in casual offerings, including denim and active lounge, was noted, with a favorable response to the third Lovesick collection [19][20] Market Data and Key Metrics Changes - E-commerce and store productivity remained strong, with increased store traffic and performance exceeding expectations [68] - New store openings contributed to over a third of sales from new customers, with 90% of the store base being profitable [34][35] Company Strategy and Development Direction - The company aims to expand its Curve business, deepen customer relationships, increase brand awareness, and leverage its infrastructure [14][37] - Plans to launch in-store bra fitting events and a dedicated Curve experience on the website next year [18] - The omni-channel strategy remains core to customer acquisition and brand engagement, with continued improvements in e-commerce capabilities [38] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing global supply chain challenges but expressed confidence in navigating these issues [40][41] - The company expects supply chain headwinds to continue into the first half of 2022 but remains focused on delivering products to customers [41] - For the full year, net sales guidance is narrowed to between $1.29 billion and $1.3 billion, with adjusted EBITDA guidance at $252 million to $257 million [59][60] Other Important Information - The company announced a share repurchase program of up to $100 million [63] - Capital expenditures are expected to be approximately $23 million for fiscal 2021, reflecting new store openings and closures [62] Q&A Session Summary Question: Can you quantify the incremental pressure in 3Q? - Management indicated that pressures related to store occupancy and wage costs would continue into Q4, with proactive measures being taken to mitigate costs [28][29] Question: How did e-commerce and stores perform relative to expectations? - Both channels performed strongly, with increased productivity from stores as customers returned [68] Question: What was the impact of supply chain issues on revenue? - Delays in inventory were primarily responsible for revenue performance, not a pullback in consumer demand [72][73] Question: Which product categories were most impacted by supply chain issues? - Categories such as intimates, bras, denim, and shoes faced delays, but overall, the impact was widespread [82] Question: How are customer acquisition costs trending? - An increase in customer acquisition costs was anticipated, particularly in Q4, but the company planned for this in its strategy [87][88] Question: What is the outlook for store openings and real estate? - The company remains on track to open approximately 25 stores in 2022, with positive trends in new store performance [109]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-40571 TORRID HOLDINGS INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-40571 TORRID HOLDINGS INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or or ...