Torrid Holdings, Inc. reported that fiscal first-quarter net sales decreased 11.8 percent to $293.9 million compared to $333.2 million for the first quarter of last year. Comparable sales decreased 14 percent in the first quarter.
Gross profit margin was 37.7 percent of net sales in the fiscal quarter ended April 29, compared to 39.0 percent in the first quarter of last year. The 134-basis-point decline was said to be primarily due to an inflationary impact on product costs, an increase in store occupancy, and merchandising payroll, partly mitigated by enhanced pricing strategies and other favorable factors.
Net income was $11.8 million, or 11 cents per share, in the fiscal first quarter, compared to net income of $24.1 million, or 23 cents per share, in the first quarter of last year.
Adjusted EBITDA was $38.3 million, or 13.0 percent of net sales, in Q1, compared to $51.8 million, or 15.5 percent of net sales, in the first quarter of last year.
In the first quarter, the company opened five Torrid stores and closed six Torrid stores. The total store count at quarter-end was 638 stores.
Cash and cash equivalents for the three months ended April 29 totaled $18.3 million. Total liquidity at the end of the first quarter, including available borrowing capacity under a revolving credit agreement, was $149.0 million.
Cash flow from operations for the three months ended April 29 was $11.2 million, compared to $9.2 million for the three-month period ended April 30, 2022.
“During the first quarter, we carefully managed our expenses and inventory levels, which enabled us to deliver Adjusted EBITDA in line with our guidance, despite challenging traffic trends,” said Lisa Harper, CEO of Torrid Holdings, Inc. “Our focus for fiscal 2023 is to execute our strategic priorities centered on strengthening our product offering, optimizing our customer file and growing our store footprint, which we believe will position us to deliver consistent growth over the long-term.”
For the second quarter of fiscal 2023, the company forecasts net sales between $280 million and $295 million and Adjusted EBITDA between $32 million and $38 million.
For the full year fiscal 2023, the company expects net sales between $1,095 billion and $1,145 billion, Adjusted EBITDA between $115 million and $130 million, and capital expenditures between $35 million and $40 million reflecting infrastructure and technology investments as well as between 30 and 40 new stores for the year.
