Torrid Q4 comparable sales drop by 9 percent

Fourth quarter net sales at Torrid decreased 2.6 percent to 293.5 million dollars and comparable sales decreased 9 percent in the quarter under review.

Gross profit margin was 34.5 percent, a 250-bps improvement, while net loss was 4.1 million dollars or 4 cents loss per share. Adjusted EBITDA remained flat at 16.4 million dollars or 5.6 percent of net sales.

Commenting on the trading update, Lisa Harper, Torrid’s chief executive officer, stated: “We are encouraged by the improving trends in sales and margins as customers responded to our new merchandise collections. For the fourth quarter we delivered results that exceeded our guidance, providing a strong foundation for the future.”

Torrid posts 10.6 percent decrease in 2023 sales

Net sales in fiscal 2023 decreased 10.6 percent to 1,151.9 million dollars, while comparable sales decreased 12 percent compared to last fiscal year.

Gross profit margin was 35.2 percent, net income declined to 11.6 million dollars or 11 cents per share, and adjusted EBITDA to 106.2 million dollars or 9.2 percent of net sales.

The company opened 23 stores in the fourth quarter and closed 11 stores and opened 36 Torrid stores in 2023 and closed 20 and ended the year with 655 stores.

Torrid forecasts increase in FY24 sales

For the first quarter of fiscal 2024, the company expects net sales between 277 million dollars and 282 million dollars and adjusted EBITDA between 31 million dollars and 34 million dollars.

For the full year fiscal 2024, the company expects net sales between 1.135 billion dollars and 1.155 billion dollars and adjusted EBITDA between 106 million dollars and 116 million dollars.

Torrid plans capital expenditures between 20 million dollars and 25 million dollars reflecting infrastructure and technology investments as well as between 15 and 20 new stores for the year.