For its third quarter, Torrid Holdings reported a net sales decrease of 8.3 percent to 275.4 million dollars, while comparable sales decreased 8 percent in the quarter.
Gross profit margin dropped to 33.2 percent, net loss reached 2.7 million dollars or 3 cents per share, and adjusted EBITDA declined to 19.4 million dollars or 7 percent of net sales.
In a separate release, the company announced the promotion of Paula Dempsey to the role of chief financial officer (CFO).
Commenting on the financial results, Lisa Harper, Torrid’s chief executive officer, stated in a statement: “Our third quarter results came in ahead of our expectations on both the top and bottom lines. However, given the current environment, which is promotional and dynamic, we are planning our business accordingly."
Torrid promotes Paula Dempsey to CFO
The company added that Dempsey served as the interim CFO until her promotion on December 4, 2023.
Dempsey joined the company in January 2023 and has been serving as interim CFO and senior vice president and investor relations since May 2023.
“I am delighted to announce that after an extensive search, we have chosen Paula as our new CFO. She has proven herself as a strong leader and a great partner to me and our entire executive team,” added Harper.
Dempsey was senior vice president of corporate finance at Mattress Firm prior to joining Torrid.
Commenting on her new role, Dempsey said: “Torrid is uniquely positioned in the retail market and has an incredibly loyal customer base. I believe there is tremendous potential for this brand to deliver consistent and profitable growth over the long term.”
Torrid announces Q4 and full year outlook
For the fourth quarter of fiscal 2023 the company expects net sales between 267 million dollars and 283 million dollars and adjusted EBITDA between 9 million dollars and 13 million dollars.
For the full year the company expects net sales between 1.125 billion dollars and 1.140 billion dollars and adjusted EBITDA between 99 million dollars and 103 million dollars.
Torrid plans capital expenditures between 25 million dollars and 30 million dollars reflecting infrastructure and technology investments as well as between 34 and 36 new stores for the year.
During the third quarter, the company opened five Torrid stores and closed one and ended the period with total store count of 643 stores.