Torrid (CURV) Q1 2025 earnings summary

Executive summary

• Q1 2024 net sales were $279.8 million, down 4.8% year-over-year, but Adjusted EBITDA exceeded guidance due to gross margin expansion and disciplined expense management.

• Net income rose to $12.2 million ($0.12/share) from $11.8 million ($0.11/share) last year, with gross profit up to $115.4 million.

• Adjusted EBITDA was $38.2 million, nearly flat year-over-year, with margin up to 13.7%.

• Store count increased to 658 as of May 4, 2024, with six new stores opened and three closed in the quarter.

• Leadership changes included Han Park promoted to COO and Ashlee Wheeler to Chief Planning Officer; Mark Mizicko retired as Chief Commercial Officer.

Financial highlights

• Gross margin improved to 41.3% (up 360 bps year-over-year), driven by lower product costs and higher regular-priced sales.

• Comparable sales declined 9% in Q1 2024, compared to a 14% decline in Q1 2023.

• SG&A expenses were $76.5 million (27.3% of sales), up from $71.2 million (24.3%) last year, mainly due to higher performance bonuses and headquarters expenses.

• Marketing expenses were $12.8 million (4.6% of sales), with a slight increase as a percentage of net sales.

• Cash and cash equivalents at quarter-end were about $21 million; total liquidity was $137 million.

Outlook and guidance

• FY2024 net sales projected at $1.135–$1.155 billion; Adjusted EBITDA guidance tightened to $109–$116 million.

• Q2 2024 net sales expected at $280–$285 million; Adjusted EBITDA $30–$34 million.

• Capex planned at $20–$25 million for infrastructure, technology, and 15–20 new stores.

• Plans to open 15–20 new stores and close 10–15 stores in FY2024.

• Guidance reflects macroeconomic challenges, higher labor costs, and does not factor in new credit card late fee regulations.