Torrid (US:CURV)2024-12-11 21:38Financial 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]