Despite the decline in sales, the company achieved a significant improvement in its gross profit margin, which rose to 41.3 per cent from 37.7 per cent in the first quarter of the previous year. This 360-basis point improvement was primarily driven by lower product costs through strategic pricing renegotiations with vendors and an increase in sales of regular-priced products, the company said in a press release.
Torrid Holdings reported Q1 FY24 net sales of $279.8 million, a 4.8 per cent decrease from last year, with comparable sales down 9 per cent.
Despite this, gross profit margin improved to 41.3 per cent.
Net income rose to $12.2 million, or $0.12 per share.
Torrid forecasts Q2 net sales of $280-$285 million and FY24 net sales of $1.135-$1.155 billion.
Net income for the first quarter reached $12.2 million, or $0.12 per share, compared to $11.8 million, or $0.11 per share, in the same period last year. Adjusted EBITDA was reported at $38.2 million, or 13.7 per cent of net sales, slightly down from $38.3 million, or 13.0 per cent of net sales, in the first quarter of the previous year. During this quarter, Torrid Holdings opened six new stores and closed three, bringing the total store count to 658 at the end of the quarter.
Looking ahead to the second quarter of fiscal 2024, the company expects net sales to be between $280 million and $285.0 million, with adjusted EBITDA projected to be between $30 million and $34 million. For the full year of fiscal 2024, Torrid Holdings forecasts net sales to range from $1.135 billion to $1.155 billion, and adjusted EBITDA to be between $109.0 million and $116 million. Additionally, the company plans to open 15 to 20 new stores and close 10 to 15 existing stores throughout the fiscal.
“We are pleased with our start to fiscal 2024. In the first quarter we delivered higher-than-expected Adjusted EBITDA driven by strong gross margin expansion, while maintaining our focus on tightly controlling inventory levels. Our customers responded positively to our ongoing assortment changes, leading to improved traffic and sales throughout the quarter,” said Lisa Harper, chief executive officer.
Fibre2Fashion News Desk (DP)
