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Torrid Holdings Inc. (CURV+4.42%) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
The filing reports net sales of $263.8 million for the quarter, a decrease from $275.4 million in the same quarter the previous year. The decline is attributed to decreased sales transaction values and a reduction in PLCC Funds.
Gross profit for the quarter increased to $95.2 million from $91.5 million in the previous year, with gross profit as a percentage of net sales rising to 36.1% from 33.2%. This improvement is due to reduced product costs and an increase in sales of regular-priced products.
Selling, general and administrative expenses rose to $74.9 million from $71.9 million, primarily due to increases in performance bonuses, legal expenses, and headquarters general and administrative expenses.
Marketing expenses increased slightly to $13.1 million from $12.7 million, driven by higher social media spend and other marketing activities.
Interest expense for the quarter was $8.8 million, down from $9.8 million in the previous year, due to a lower balance on the Amended Term Loan Credit Agreement and reduced borrowings under the ABL Facility.
Net loss for the quarter was $1.2 million, compared to a net loss of $2.7 million in the previous year. The effective tax rate for the quarter was 2.1%, down from 12.5% in the previous year.
The company reported Adjusted EBITDA of $19.6 million for the quarter, compared to $19.4 million in the previous year. Adjusted EBITDA is a non-GAAP measure that excludes certain expenses.
Torrid Holdings Inc. operates 655 stores as of the end of the quarter, an increase from 643 stores in the previous year.
The filing also discusses the company's liquidity and capital resources, noting that cash generated from operations and availability under the ABL Facility are expected to be sufficient to meet working capital requirements and capital expenditures for at least the next 12 months.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Torrid Holdings Inc. quarterly 10-Q report dated December 11, 2024. To report an error, please email earnings@qz.com.