Torrid (US:CURV)2025-12-10 21:39Financial Performance - Net sales for Q3 2025 were $235.2 million, a decrease of 10.9% compared to $263.8 million in Q3 2024[19] - Gross profit for Q3 2025 was $82.2 million, down 13.6% from $95.2 million in the same period last year[19] - The company reported a net loss of $6.4 million for Q3 2025, compared to a net loss of $1.2 million in Q3 2024[19] - The company’s operating income for Q3 2025 was $205, significantly lower than $7.2 million in Q3 2024[19] - Net income for the nine months ended November 1, 2025, was $5,940,000[21] - Net income for the nine months ended November 2, 2024, was $19,306,000, compared to $1,081,000 for the same period in 2025[24] - 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[123] Assets and Liabilities - Total current assets decreased to $188.7 million as of November 1, 2025, from $226.2 million as of February 1, 2025[17] - Total liabilities amounted to $609.5 million, down from $679.5 million at the end of the previous reporting period[17] - The accumulated deficit increased to $330.2 million from $331.3 million, indicating ongoing financial challenges[17] - Total stockholders' deficit as of November 1, 2025, was $(206,515,000)[21] - Total stockholders' deficit as of November 2, 2024, was $(189,286,000), reflecting an increase from $(211,717,000) at February 3, 2024[22] Inventory and Expenses - Inventory levels decreased to $128.8 million from $148.5 million, reflecting a reduction of 13.2%[17] - Selling, general and administrative expenses were $66.3 million, a decrease of 11.6% compared to $74.9 million in Q3 2024[19] - Selling, general and administrative expenses for the three months ended November 1, 2025, were $66.256 million, representing 28.2% of net sales[123] - Selling, general and administrative expenses for the nine months ended November 1, 2025, decreased by $21.4 million, or 9.4%, to $206.8 million, representing 27.1% of net sales, down from 27.5%[139] Cash Flow - Cash provided by operating activities was $65,366,000 for the nine months ended November 2, 2024, compared to a cash used of $7,122,000 for the same period in 2025[24] - Net cash used in operating activities during the nine months ended November 1, 2025, was $7.1 million, a significant decrease from $65.4 million provided during the same period in 2024[156] - Net cash used in investing activities was $5.4 million for the nine months ended November 1, 2025, down from $12.6 million in the prior year, primarily due to fewer new store openings and remodels[158] Sales Performance - Apparel sales accounted for $213.6 million in the three months ended November 1, 2025, down from $230.8 million in the prior year, representing a decline of 7.5%[49] - Non-apparel sales decreased significantly to $12.3 million from $24.9 million, a decline of 50.5% year-over-year[49] - For the nine months ended November 1, 2025, total net sales were $763.9 million, down 7.8% from $828.2 million in the same period of 2024[49] - Comparable sales decreased by 8% for the three months ended November 1, 2025, compared to the same period in the previous year[100] Stock and Shareholder Information - Common shares outstanding increased to 99,197,000 as of November 1, 2025[21] - The company repurchased common stock totaling $(20,285,000) including excise tax[21] - The company entered into a stock repurchase agreement on June 23, 2025, agreeing to purchase $20.0 million of shares at a price of $3.32 per share, repurchasing 6,030,908 shares[64] Legal and Compliance - The company has been named as a defendant in six pending class action lawsuits related to data security, with no determination on the probability of loss at this time[81] - Management concluded that disclosure controls and procedures were effective as of November 1, 2025, ensuring timely and accurate reporting[164] Marketing and Future Plans - The company plans to close approximately 100 additional stores by the end of fiscal year 2025, following the closure of 74 stores through the end of the third quarter of fiscal year 2025[98] - The company plans to continue investing in brand awareness and customer engagement through targeted marketing efforts[112] - The company anticipates growth in operating expenses due to increased spending on advertising and hiring additional personnel[114]