Torrid (US:CURV)2025-12-03 21:08Financial Performance - Third quarter net sales decreased by 10.8% to $235.2 million compared to $263.8 million in the same quarter last year[8] - Comparable sales fell by 8.3% in the third quarter[8] - Net loss for the third quarter was $6.4 million, or ($0.06) per share, compared to a net loss of $1.2 million, or ($0.01) per share, in the prior year[8] - Adjusted EBITDA was $9.8 million, representing 4.2% of net sales, down from $19.6 million, or 7.4% of net sales, in the same quarter last year[8] - Net sales for the three months ended November 1, 2025, were $235.153 million, a decrease of 10.9% compared to $263.766 million for the same period in 2024[27] - Gross profit for the same period was $82.176 million, down from $95.157 million, reflecting a gross margin of 34.9% compared to 36.1% in the prior year[27] - The net loss for the three months ended November 1, 2025, was $6.426 million, compared to a net loss of $1.194 million for the same period in 2024[27] - Adjusted EBITDA for the three months ended November 1, 2025, was $9.776 million, a decrease from $19.584 million in the prior year[33] Store Operations - As of the end of the third quarter, the total number of stores was 560, with 74 store closures year-to-date[8] Liquidity and Assets - Cash and cash equivalents at the end of the third quarter totaled $17.2 million, with total liquidity of $103.4 million[6] - Total current assets decreased to $188.666 million as of November 1, 2025, from $226.166 million as of February 1, 2025[29] - Cash and cash equivalents at the end of the period were $17.213 million, a significant decrease from $48.523 million at the beginning of the period[29] - Inventory levels decreased to $128.817 million as of November 1, 2025, from $148.493 million as of February 1, 2025[29] - Total liabilities as of November 1, 2025, were $609.451 million, down from $679.530 million as of February 1, 2025[29] Expenses and Investments - The company incurred interest expense of $7.906 million for the three months ended November 1, 2025, compared to $8.784 million in the same period of 2024[27] - Marketing expenses increased to $15.715 million for the three months ended November 1, 2025, compared to $13.056 million in the prior year[27] Future Outlook - For fiscal 2025, the company expects net sales between $995 million and $1.002 billion and adjusted EBITDA between $59 million and $62 million[13] - The company anticipates up to $50 million in tariff impact, with $40 million mitigated through various actions[13] Strategic Initiatives - The company is focusing on strengthening merchandising, rebalancing assortment, and investing in customer acquisition and loyalty initiatives[3] - The company has taken corrective actions to address execution missteps and is seeing early signs of improvement[2]