CURV - Earnings call transcript Q3 2021

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Operator

00:04 Greetings. Welcome to Torrid Third Quarter Fiscal twenty twenty one Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. turn over now Jessica your will Schmidt. I the to conference host XX:XX

may You begin.

Jessica Schmidt

everyone. for Liz released Thank to afternoon, on our Good XX:XX sure you With Officer. investors.torrid.com. Executive third you of can Torrid; language, found you're me results, Officer website to and at discuss begin, call joining remind quarter which of Chief I afternoon may statements company's we we familiar is this the make be in which Muñoz, its call and George underlying including all I'm XX:XX Wehlitz, Management with. guidance would Before Chief assumptions. Harbor the Financial Safe forward-looking like Torrid’s and

differ to that risks the further on statements a these non-GAAP that Liz to and materially. discussion based adjusted release of the Forward-looking EBITDA adjusted such on to risks to in call business, This SEC to the Now, would turn and and financial over are with XX:XX involve our furnished like measures EBITDA filings comparable are measures see our call the earnings as with I related available Reconciliations of For could GAAP measure XX:XX expectations contain uncertainties will our SEC. included website. Muñoz. results non-GAAP cause actual the margin. most

Liz Muñoz

quarter our Good XX:XX for us afternoon everyone. Thank performance. third joining discussion of you a for

two retirement, twenty transition point retirement. the will him our XX:XX which want us to was partner serve for has quarter Torrid, of sure will decade, begin, like end in George as and an an over in moment success, am XX:XX Before months. of the for address company a and the which to I role. thank well pending of would I last an available first I part to George’s George to we saw his we to several time a built public the have he his I tremendous press and forward at in take He which remain you over relationship. a a been contributions during well particularly as release. advisory today’s his to we twenty George to to know him as integral next be transition congratulate I on deserved look role valuable transition will always seamless incredible

in a comprehensive I are search both of We the to you we and update employees our want we XX:XX performance. customers thank as progress and process launching external whose passion strong loyalty and to internal will of appropriate. and make contributed the candidates on also our

the environment. George employees turn I outlook. detail We and third provide quarter over our are then they On growth this will especially strategies. performance grateful financial our update in to call, I for an difficult navigate will discuss operating our discuss our XX:XX as detail our strong on efforts and to performance today’s call more

our business making intimate Our performance. EBITDA of the We excited we XX:XX and day to look feel. everywhere is they excitement the from getting comes and way mission strategies. long-term our apparel the dressed know at help confidence curvy in women that and love makes Torrid every them double-digit that global further to model of quarter and delivered another and navigating top line supply be demonstrating the are challenges, the XX:XX strong growth, against are We while reporting strength progress

percent results, We compared grew nineteen. percent net refine and fit an providing consistently twenty her continue and again we sales to last the Briefly experience to highlighting our unparallel this third with deliver quarter third quarter thirteen on enhance. that XX:XX mission year compared to quarter and our of nineteen

adjusted hundred last comparable our nearly margin points a EBITDA thirty our of comp seven e-commerce fourteen thirty XX:XX five seventh which EBITDA stores marking and was driven increase the positive increased and Our expanded one from percent, growth last thirty basis of year's by fifty eighteen sales in to adjusted Our sales nine million includes quarters. percent.

operating rewards and with marketing select supported In we customers sales doubled Curve XX:XX into and which campaigns size the We the and we across are and was growth and model loyalty. a initiative of her to powerful the the intimates, with by encourage longer-term assure constant us. in our assortment Turning and that all nimble us our bra to margin campaigns we targeted we XX:XX runway in relationships, strategies, of brand effectively still offering evolve test to Our building both both highly marketing are results customers front awareness, remain experience, growing higher revenue XX:XX initiatives and as our QX, customers Curve on feedback, the a an of our During use our to innovate our results. were long expanding specific our to to Curve First, engaged continuously sexy to she this quarter. our against with ran well We in test successes continued XX:XX underserved commitment organization. committed enabling is Torrid, our to infrastructure. learning possible, Curve attracting and key reflect and customer the that thought customers, stores execution we Curve evolve for the solving additional XX:XX where purchases. specific contributing never a the strategic to new and and At our that activate we pleased These on our that's we challenges customer continuously and something business to business. our brand have first which aspects category drive successfully categories each our flow energized is comfortable. and us quarter, community. is leveraging bras, our strategy further important we keep include our with of with part tested product bra Curve, customer of fit valuable providing as deepening of segments growth increasing we our a as deliver specific drove

see to We of relationships twenty growth to on flow our We experience the our our not next with dedicated assortment and XX:XX strategy, track rose entry that new XX:XX remain excited building customers. quarter, events deepening marketing Our be Torrid Curve traction for Curve evidence expand we Curve excitement size, build of is business Curve our more over in for with of to year item launch by existing product incremental campaigns targeted new a two we've also size. intimate Looking will on Curve Curve reach on attracting launch drive these stores engage end twenty plan engagement gained XX:XX customers, and of increasing twenty will higher combined our to the basket remaining to conversion XX:XX percent our our website will Torrid offerings could and to revenue, Turning the number attracting driving fourth opportunity our overall second five Torrid about and bras ahead, new in bra purchases. new and basket on our the the We in-store In customers, customers. expand two. the customers loyalty significant further Curve. stores. customers, we fitting with ahead we and the creates

licensing, Performance Trends strength launched compelling continues to work and normal XX:XX as product licensed items fast from a and During holiday activities met celebrations. was we Halloween brand. past in collection a Torrid. In offering favorable third we our Lovesick with exceptional return with successes as response. also existing offerings, growing sales from where we social dressier almost limited where in strong used behavior XX:XX which the saw a example, to were including our collection, and affinity leveraged We saw our denim, our we to customer customers casual twice learnings across drew the than customers quarter, For new in customers also to fleet. work. more active was and response our overall as lounge, our launched for

continue go in excitement innovation. to product we will we As create forward,

address capabilities. leverage to expanding serve has our sleep, on calf and her fit brand, by example, XX:XX categories is needs. including continue the customer unparalleled fit occasions. we collaborations capabilities build asking to been are which strong, that special Torrid footwear, we to needs wide our in our of our additional We and of customer fit multiple to will that customer are extensive continuing boots, available enhanced additional success shaft response this in meet sizes our The ways For

to customers. XX:XX our for We the also has to website, a the excitement accepting fresh most navigation third highlight XX:XX continue deepen quarter, a Torrid engagement daily of one on second in During to unique directly website, We our also card new enhancements increase our drop and with highest quickly generators to our the which arrivals, resulting we e-commerce to our visits applications. added option option. applications recent make began platform our become on only credit in significant our arrivals of create

will new test the continue We to overall our initiatives we features, improve to expand online will of and XX:XX experience. creativity to our as functionality, our website learnings storytelling. continue to on evolve and build website these the We enhance

share. deepen also and to We leverage expand our our program our wallet loyalty relationships

Facebook create to the a program social shared For reviews to purchases platforms, in example, on and loyalty engagement. loyalty our customer media offered who resulting bonus on categories. quarter, customers increase to strategically Pinterest leveraged targeted our in points engagement drive we we social XX:XX significant During product and media

While enhance content, this feedback our program deploy engages we and to generates valuable that can it also continually with us customer our provides offering.

our strategy, the investments collaboration [Technical reward successful this initiatives, creative quarter. during highly digital customer [ph] accelerate reviews [enhancements] Difficulty] was which website will quarter. at key growth events, a community at third program, marketing the XX:XX during and Taking We and look incentivizing

a new a marketing the campaign low actively important our and customer Has September, we bras and serve No source stores, diverse selectively this Size. different campaign interactions. sizes. competitive new which a also launched tag also of highlighted XX:XX featured acquisition Sexy of seeks advantage This We line, and denim an as in models In customer person as sitting more of opened cost group with

digital part impressions and which one integrated publications awareness paid support. increased through expect marketing to such to XX:XX we As subsequent of RefineryXX these launch partnerships, POPSUGAR partnerships over as new company, conducted million time. acquisition the QX twenty with We drive focused over customer we and generated female in

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pleased result build with ability during million generated impressions. are The it demonstrated of drove two over XX:XX quarter brand content the the awareness. as our its to pilot We

We continue to based early evaluate and expand reception learnings. on and early this program

engagement. drive strategy store content video our initiative, component reels and to Instagram important programs. response of we marketing new messaging Our continue driving we adjusted will is and an overall changes traffic in on increased to to Instagram, XX:XX digital our test marketing On our

to emerging will and in We invest both media continue existing platforms. social

to off for are winners TeamTorrid one event similar twenty The members. customers, will community to called to during for from and to our are holiday content our XX:XX winners two model engaging top in our media featured we August. creating also loyalty plan selected search, and digital we leverage that social a to we In our a the were to on creative twenty our customer continue We in Building support as post-COVID, a different marketing leverage across important be us diversity XX:XX twenty Even awareness will followers. spring TeamTorrid, initiatives, this The and events communities. represent are to and The fourth Foundation stores brand and and acquisition are the event annual Cancer offer the five marketing we remains in cause. brand engaging and twenty customer campaign, effectively XX:XX model to Breast world. XX:XX demonstrate strategy our cause engagement. proud inspiring May our stories a and addition, breast to hundred number website with collaborations which to have brand our and omni-channel This commitment our one excitement dollars. year, we National and community. over specific employees activate of all videos, search awareness We We engagement thrilled generated core and way which results, first the of to campaign. held success discovers awareness eighth increased continued our This in both quarter, thousand the platforms designed our be will inclusivity we product new VIP to across our and ways. also with successfully held real cancer raised our the we use them Torrid. drive exclusively We collaborated

locations. nineteen new stores we the to As ninety XX:XX percent base base During is store our opened bringing profitable. eleven quarter, our of a third six over reminder, store

and Our third The XX:XX bid store of performance of our This great. ahead and where generated stores pre-COVID expectations for shop. feel wants her with an she remain levels. competitive locations, openings a outlet significant exceeded passionate committed our over of from sales advantage. were has New customer particularly customers, immersive our engaging entire to base or and we our new store majority associates optimal experience important make her a customer offer an a who making experience to designed struggled life is fit to

Going we our fourth infrastructure. And of our localized power XX:XX the initiatives. store further with are enhancing forward, finally, leaning into marketing growth our base our strategy

on channel products. capabilities, improve to omni-channel additional the continue We from our ship including store of expansion

shop We love enhance a pick customers. to feature additional while saw up our continued commerce unified our direct-to-consumer also our experience order. to it to our XX:XX stores growth customers Our pickup buy omni-channel online providing product capabilities. We online in store capabilities model, encourages this as and seamless in in

existing into refine to ongoing our we twenty XX:XX is fiscal will we as upon head as omni-channel fourth to continue organization quarter, and our drive to build continue capabilities well As which consumer twenty the as the growth. infrastructure believe channel an profitable adapt we investments, offering environment, changing and expand and leverage We we our process. two, will

this will Over the particularly to supply our of and global with headwinds. Overall, the generation our the we enhance the operating industry functionality. are challenging rest improved we experience far year, the and thus next search months, Torrid along environment. for few app facing We are given pleased accomplishments XX:XX with launch the next quarter chain

a getting hands specifically the into customer’s working relationships and managing partners U.S. to costs the to We these have in deliveries. our our we with products strong base with is closely our mitigate are priority long-term vendor and challenges. diversified XX:XX manufacturing current and associated into the addition Our

our the As her meeting and always, customer we despite are focused on environment. delivering operating needs, for current

our successfully expect we twenty In XX:XX third results demonstrate especially the one in our light into least to are challenging underlying twenty strong. model we twenty we of The far environment. supply conclusion, of at have brand. multi-lever the environment performance, remains strategy chain proud the and twenty quarter current navigating While are first we continue reflect in of of headwinds growth half so our our the and delivered operating power two,

shareholder third provide of acquisition ahead execute a the within for strategies detail. turn call to the quarter behind outlook to and the financial to our value. profitable full-year. over opportunity continue in XX:XX and customer performance awareness in women's billion and We will deliver growth financial create underserved our the with significant with long-term now five discuss our large will growth. growth market. to size quarter proven dollar accelerate also will eighty expand fourth a George have to I He greater you brand XX:XX We small early remain our market us plus our and We innings just percentage of the of

George Wehlitz

net million, anomalies better afternoon, In from to Liz, for for on everyone. XX:XX seventy a year sales year followed our percent I last detailed For compared to with good the quarter twenty my will by quarter, zero the percent Thank us. our an a comparisons three will third our make results, by prior normalize you of growth. and and to third created provide select joining financial of to of update two COVID-nineteen, XX:XX increased remarks, understanding nineteen begin twenty Thank discussion you, the I outlook. the million nineteen. thirteen in nineteen six grew to

third chain supply by the recovery given by driven in and faced of fourteen transactions the caused business and strength in e-commerce pleased by particularly quarter increase percent productivity. are primarily Comparable in store constraints sales our We inventory challenges was quarter. the growth our higher with was ongoing growth sales the we during XX:XX both driven the an performance, in continued the ALV. Our

margin presence. as attract We business, customers of increased compares XX:XX six leveraging of million of to thirty or focus per four million expansion from nineteen. as net quarter in our drive forty costs the either customer, eight well sales spend Gross as the by promotional third point supply and percent hundred XX:XX on net new was fifty profit eight basis ninety million offset freight expense result customer brand disruptions. current occupancy percent related pricing gross twenty partially point in quarter ninety five the was net and point expanding in the and one increase the our or engagement, omni-channel continue prior and This of percent to driving in a by primarily point chain higher nine year third in five reduced an our five initiatives, to last year our twenty or sales. store profit and activity sales thirty to three of driven This

higher impact administrative Selling, to to million for in third costs the the We freight quarter, speak quarter shortly. in will fourth six in expect I and sixty the which million, seven expenses to were quarter general prior the of the sixty XX:XX compared persist year. these

a point and year. an the in million, with and fourteen fifteen Marketing share associated lower to to in three and in seven As This decreased last percent, percent quarter based primarily partially being costs of year. hundred sales, operating store were our store due XX:XX the increase a and expenses the points of costs third in percentage for twenty expenses approximately four compensation, twenty to third A quarter leverage to quarter company. improvement compared compared one point offset additional was seven by SG basis public the million

the year. points nine in to during decision of moderate compared costs third a percent, to two strategic as percentage the last associated availability delays. result four a shipping than were due marketing to five to the planned The Turning point marketing lower thirty percent with point reduced sales, quarter approximately quarter of As of XX:XX marketing profitability. investments basis to declined XX:XX product

dollars the or million net quarter our point addition evaluate percent one four zero zero relevant IPO. income Compared to earnings in per and manage fifty the XX:XX non-deductible to million dollars eleven million totaled to XX:XX compared five point based in point percent the year. dollars For year and that four amount of sales five balance cash associated legacy compared charge largely in the two IPO million one-time last re-valuing an the dollars XX:XX Net three XX:XX as million per This one Adjusted to In EBITDA of incentive dollars sales, at point net percent end associated GAAP to period from equivalent EBITDA quarter was nineteen. hundred or measures the the per driven units five per in the our to incentive seven to sixty by loss million of two Turning of zero our an eighteen fifty million eleven increase point part the the one quarter four or million the The unit dollars believe third or twenty are measures, quarter was adjusted associated from or sales share important share adjustments quarter, This of for that for income part GAAP adjusted quarter. increase dollars million. same diluted to and as net quarter three twenty was compensation. percent adjusted items last share thirty of this our with of sheet, of income fifty eighteen was cash impact and of compares of Adjusted we thirty use non-cash of seven particularly income twenty our four eight revaluing net increase with fifty business. share, zero rate with twenty. percent point we for non-cash zero fifty or quarter share. due on twelve the remainder net charge due the or twenty. was our the twenty and twenty, legacy tax net eight third two third percent, diluted to nine net of seven in of are twenty

is hundred growth XX:XX as October recorded in capital cash five we the one of from the managing and term efficiently Total end totaling quarter. and was the for strong the one loan needs. reflecting operations thirty, month continue million Our the quarter ended one three working nine twenty forty profitable flow debt new our period to prior twenty twenty at million, deliver

EBITDA of from two to zero point XX:XX third As million of adjusted generation fifty forty and debt net second quarter, a end quarter million, at nine two one this the strong the hundred at cash at EBITDA year twenty improvement million growth and is one to adjusted seven quarter. and compared one the result of quarter our quarter-end, point at was four Inventory which our an one one in twenty hundred of last end was the and hundred the nineteen.

levels, in-transit year. from was prior slightly inventory our down Excluding

total modestly stores. is third measures the levels comfortable in available a eleven to XX:XX and outlook. of quarter below in meet very demand inventory took reflected feel opened optimal bringing to to air freight, levels, quarter our is that nineteen stores six forecast. fourth consumer inventory us our Turning the our We with the we radical Although to

twenty very will we are far chain by twenty recognize the global twenty encouraged twenty in into challenges in the thus two. persist we one, industry wide supply Although, performance and QX

and earlier, these to of proactive early goods, proactive situation cost impact, and it and to take orders will increasing manage some starting consolidating XX:XX as pressures continuing to benefit supply we by are air until to chain next year. freighting fabric offsetting We are our well While as begin initiatives not selectively the prices. the taking monitoring including many the associated closely orders mitigate selectively of measures placing measures

narrowing point gross eight prior margin three sales quarter one compared the industry previous we are fifty our guidance labor as For from assumes million. material, in net to our higher elevated related million fifty also compared outlook two nine well two pressure one to point fourth two resulting full-year, adjusted transportation, are guidance cost, point profit our potential outlook The two eight billion a two and for our of three the as our guidance between twelve future higher two inventory XX:XX peers We guidance. with Our approximately twenty of raw forty Capital to promotions one totaled two and stores for one to twenty to to be our store twenty EBITDA nine of one to million new the to twenty to new approximately fiscal expected fifty in one. prior billion are range three narrowing end range delays. or range range is XX:XX billion, openings consistent XX:XX point expenditures now fourth twenty million roughly billion. two million quarter one, reflecting the twenty three in seven

by We one of our five to common share are also program we quarter. dollars planning fourth to million which up stores under We may announced authorized Board a of stock. repurchase hundred Directors, close approximately outstanding XX:XX the repurchase our in

believe Our remains term corporate remain this and outlook our and in other to opportunistically regulatory We to total first factors, priority business confident and growth including conditions. shareholder time make depending to upon tool may from return. our variety we is share another long price, marketed enhance our and purchases business invest requirements, in a of XX:XX time

appropriate. as update share will repurchases We on our you

I I of twenty as our to I been relationship experience XX:XX focused the that and for future ensure incredible we initiatives. role executing tremendous advisor an the to first my decade and the beyond has about a operator. will support excited business up this that, and together through opportunity one, to will to every long quarter our serve it smooth and growth strategic thereafter. twenty future the have two and its XX:XX and twenty the will CFO during a on had it Torrid as built the company working turn continue twenty an are for remain questions now continue growth an As confidence continue term Liz Liz we me. and journey over open of I look transition as we to With amazing As opportunities. will and end mentioned, has

Operator

[Operator from Proceed question. first XX:XX question Instructions] America. Hutchinson Our Lorraine Bank of your with with is

Lorraine Hutchinson

to incremental XX:XX for just are XQ? first dig half, your all half? Or those the offset gross the Thanks. in more. Can bit that pressure Good pressure you be expect first within thinking afternoon. pressures you'll the margin looking wanted how then guidance the about into a then? gross in range you and I XQ? you you in into source cost quantify have And margin would to of think to some still able do And

George Wehlitz

XX:XX Yes, Lorraine.

that how wage do in from pressures the But we do fronts a mitigation manage and can that So, of it. we many in a selected how two do to XQ more at on more are looking vendors purchased we year, some with in doing How as bring partnering standpoint, coming impact are issues? twenty timeframe as as purchased piece we far comparing them into QX we're relationship vendors costs coming how with if occupancy of number goods far of the production in twenty, to some of of we time the seeing related and into seeing and we related have control good twenty said, we again looking as have us really some as to more for can who we we’ve to see related our twenty we as that of many we those store related really [indiscernible] the at had those some So, related continuing production to consolidating moderation XX:XX increases, XQ, with QX, price see in to well. fabrics? do initiatives pressures our actually looking which costs we as we'll still what amounts the the at we'll and to abatement last we'll that see to

So, that as as how the well. production doing standpoint we're unit we're far from as looking

Lorraine Hutchinson

the for stores about can then, And Thanks. quarter? e-commerce expectations and talk of initial third the XX:XX performance versus you your

George Wehlitz

XX:XX Both remain very strong.

online, the stores she's stores increased As coming have to engaged She to has type productivity have craving. back that's really continued COVID things she stores. what back the the with see that at all we've is come experiencing the from even opened level of store the and we going on, interaction really store

So, stores back coming see piece for into her we coming and still see online. her the do we that

at channels we're very and So, with pleased performing. how they're both point this

Lorraine Hutchinson

XX:XX you. Thank

Operator

XX:XX line your your Kimberly Please Kimberly, Stanley. is from Our with proceed with open. question is Greenberger Morgan now next question.

Kimberly Greenberger

much. so you Thank XX:XX

certain certain of supply stocks revenue the the any was the about revenue out of that. third issues in and clear you out understand rather ability Just sure third quarter supply and delays the talked the whether the revenue you us variance talk in categories in were meaning that growth help was the know less simply in stocks if your about but given in specifically quarter Sorry to I there impacts impacted if or third you about to chain consumer demand? at wasn't the came end driven, delays, revenue quarter. you both global was the on expectation were that entirely encountered end, the could of fourth I high – categories? it low seeing relative than I quarter

George Wehlitz

coming of would that wanting the that are this is, we do at that wanted than and when pullback mostly exact the the We currently from that had Yes. we – from really delays and was the of reported that end what to inventory we dollar inventory basically it. have demand, a XX:XX we we we sales any haven't in we believe amount in optimal had see higher had much being didn't implemented consumer our point. not It quantified saw that related amount

mostly the not delighted So, consumer to to pullback. delays

Kimberly Greenberger

XX:XX Okay.

inventory necessarily you than later wasn’t absence just the in it inventory much So, the that came of expected.

you during full to it didn't And I so Is I opportunity, get that a guess sell quarter. how understand it George? should the

George Wehlitz

XX:XX Correct.

Kimberly Greenberger

how stores, estimation Got then if on Lorraine’s impact twenty of much. delays, was top And impact in sort How quarter of question QX it. there have can of the revenue And chain here help supply line fourth follow-up Thanks to on much quarter? recovery you what the Okay. compared the on fourth the in any an so that sort nineteen? could XX:XX third in-store just you with us an on in of a the is quantification have to then quarter?

George Wehlitz

XX:XX see in increase said, still Well seeing, stores. last in I’ll the I part the We productivity first. like we are an take actually

in We the we levels and expected pre-COVID, we are nineteen had increase relates exceeding performance to an below Again, from seeing this stores. point what store are but still at this XX:XX store point. at traffic

seeing and delays So, at the in related that's pleased that her in stores we revenue are coming point QX product piece, with receipts. for traffic experience through the to still the we're very

and We've what are to sales for getting some forecast. inventory seeing believe our XX:XX little this guidance our higher year, in for still some lessening in a that. we for are bit built We some in prior point delays built delays but those fourth in levels seeing compared we quarter at

Kimberly Greenberger

Thank you. XX:XX

Operator

is Oliver Please question with your proceed Chen next Our Cowen. XX:XX from with question.

Oliver Chen

most were the issues parts of mentioned. curious chain XX:XX you. the on We Hi, assortment classifications that the thank impacted supply that you by or were

I freight. the you costs are guidance third it, you're thinking or that? chose question, what about of promotions levers you. which that mentioned need different from see opportunity to do may and did relative the prudent moved you the freight terms promotions. incorporates do decide also execute happening how frameworks and air in And those was Thank sales What air the you you know to scenarios what different in potential You having the but strategically you incremental there? to you balance as in

George Wehlitz

take sense of that ocean denim air at do freight but most some portion lot some then the it, current a look product we had to the at as we of the as of a how and selectively we products coming making relative related as can but backfill freight. separately do that were some of air value much here to did that to be product air the orders, we're in, coming sure same. the cost with We goods line freighting a available if freight category, and in to the of freight Taking categories what and potentially would well we well, that of versus light just making air the all air the to maximizing ocean of XX:XX of the what for at looked in then the product the freight each we XX:XX I'll the product we stores. of kind each sure impact looked the sell air as board was addition into freight, the is in had the the of had made the related appropriate what seeing orders we've products looked first. increases freight cost in across We to especially one cost

Liz Muñoz

delays wide involved. there spread. bras XX:XX denim, it to specifically; we that As most on, categories the as product, focused far The were delays as were the intimate, as delays attention was far relatively

categories we managing we're that is to things world. in harder for But and because that an make by product across thought do it probably across impacted her of what every board, focus single for want I on because or what was I we less think hit far offer board, delays make think XX:XX little sure QX we upside as the as cozy was and of that think is categories. are, overall, like a the thing is, may it's Torrid But sort accessories widespread. sort we her that we into as seasonal, well. yes, be closet, I all the to on was obviously of shoes delays that the intend what comes one that in whether we products

Oliver Chen

Okay. on XX:XX Speakers]. the [Multiple And

George Wehlitz

they the did QX. XX:XX [Indiscernible] promotions for relates to

very strategic promotions and as being we'll possible, selectively know our, we're were our is make try very they as positioning inventory ourselves into about we're you goods. to doing yeah, life to think but we promotions as at product QX, far we're seasonal as shelf as with So, seasonal that happy have and getting much go sure to look goods, shorter how the mitigating related how they as a truly I we're might

Oliver Chen

Okay. XX:XX

term marketing Thank there's question, changes in should third you. return customer perhaps [indiscernible] data costs in digital last we and well? been seeing against of with about deposits near and with you're issues as privacy trends And any party ad chain lot supply acquisition with seeing Our on a this spend? IDSA. you know What are

George Wehlitz

acquisition have into going increase for planned significantly from we seen So, did increase related have especially move what actually an looking we seen we and costs QX XX:XX that plan for and increase and an we but at as forward. an customer anything in to at have expected not QX this point,

Liz Muñoz

a part that on rely their marketing. more to do XX:XX retailers bigger of in as the of lot business, they And QX be really happens a that money historically in much traditional of spend QX

we is QX So sort drive on the of don't like do. others the they overall. of that a for rely news The lot good us

QX on as costs not but it's general. in to a always the bigger increase, market So, more us just for deal

Oliver Chen

very on Great next working XX:XX Thank with you. you the much George, steps. and regards best

George Wehlitz

Thanks XX:XX Oliver.

Liz Muñoz

XX:XX Thanks Oliver.

Operator

question Dylan XX:XX Our proceed with from William with next Blair. question. your is Carden Please

Dylan Carden

been even And holiday Thanks. XX:XX of on I customer, kind are Thanks. Is promotions up had a and promotions that been promotions is more lines on strong of kind be the why tick as in guidance line back generally I from given that from fourth just standpoint, why here guess the kind the if that big the not promotion lot they like just an with to case? a that engagement is quarter? going under Yes. able do where your the looks is with strategic in what wanted to, in people half? of meaningfully be of historically running little quarter of in the But back just strategy with might a where pull commentary. might the environment deeper the the that standpoint, just,

George Wehlitz

quarters. to a promotional Again, do that more is with necessarily of use have, it compared promotion do quarter Cyber arena That really not that general, in down events. we of macro issues start Friday and the anomaly general don't bigger bring keep In same but higher. journey engaged specifically, QX is XX:XX of increases of and to customer we're we promotional the it's as a to us trying play issues off the play to from that we've we rate the for other XX:XX what of for typically But in way having Sure. the I'll said retailers we're new activity with Monday the deeper seasonal promotional doing. as that. part activity play there. for have QX then tool, her in standpoint, engagement other a does along And Black that and in broader

add that. want you Liz to So, to

Liz Muñoz

Yes. XX:XX

we certain I like does important different because of do. use remember necessarily get her we we do is before. XX:XX brand. did think part year them to across working just and a promotions it made don't point and that. that that in We drive things how use We with highly not the it's just expectations an the so to going is connected around George she engaged, it we're that to because our She promotions have way. with what keep we important what follow as an or tool does along use So, customer that's engagement product

Dylan Carden

lot. Thanks Okay. a XX:XX

Liz Muñoz

Welcome. XX:XX

Operator

is Roach Please your from with proceed question. Sachs. XX:XX with question Our Brooke next Goldman

Brooke Roach

and a afternoon November? Liz, cadence you throughout discuss of question. Good any How sequential consumer thank George, if the little reads I early nineteen that we into wonder twenty and you bit our relative taking the maybe strong that have engagement for quarter throughout saw could that to on you XX:XX so October levels sales much was and holiday?

George Wehlitz

promotional into Brooke, related and QX guidance and as not our with engagement, into she have quarter into strong Torrid to updated it a in pleased customer We're to in we engaged did built are before far. to pullback QX amount her continue [indiscernible] and engaged that's spend. XX:XX happy spend was seen the frequency the related built to with And And of Black and spend her for the QX, in very still so going total. very throughout and in how she's in the through and what her We our we Monday again, Cyber Friday with spend QX. general.

Brooke Roach

challenges? you're the half first year, you pricing increased for into thinking little of continued and out as XX:XX The the can costs down as increases you. about the then initiatives industry play the the we how about that a the the next you how chain pipeline think cost entire across discuss And you Thank bit Thank about you. might input are input have think brand? supply that coming some

Liz Muñoz

that's addressing I the XX:XX price important long note of to things Torrid one of a is think, legacy has So, increases.

garment started So, year-over-year garment here – garment will we board. the years, I I've perspective, opening at and value order We're dollars, since we can fabric leveraging at there decisions garment to looking perspective. pricing XX:XX are price garment been areas to I on opportunity dollars and sure by that's have we're as a when I We we across we eleven really cost are are garment you and format increases price. forty drive are seventy that making think today from do think it and eight from eight cost. like. from fabrics perspective. construction customer much we and perspective there as sort centered increased we in the very do good to it’s tell and we where good and categories a system there's also a focus price looking consolidating a here would pricing example, that from was always those increased And I do we customer I on the build at think eight. that For tend also improvement a you each that, is, jean strategically eighty a make we have can. approach of We So, better look I to eleven at thirty we ago, on tell can point a eight blue years XX:XX say

George Wehlitz

see as into going still some into twenty also, of we'll twenty pressures inflationary we two, twenty go we'll And two. these XX:XX twenty

we'll of at we’re go those during our actually twenty earnings of guidance some twenty actual, As well some these into as and looking the about, we in our Liz call. see utilizing two talked to QX for twenty to twenty into early two guidance, as effect are part twenty take we as late related providing offsets two, of

Brooke Roach

much. it so Thanks pass on. I'll XX:XX

Liz Muñoz

XX:XX Thank you.

Operator

XX:XX Baird. Please question. Our your next with proceed question is from with Altschwager Mark

Mark Altschwager

respect with Great. customer what's on for and growth looks twenty percent XX:XX more growth like in embedded question. for to overall terms fiscal what twenty the nineteen, afternoon. nineteen twenty Good the customer of you the detail I one growth? provide customer can per Thanks to outlook taking versus spend any guess relative

George Wehlitz

number Yes, as customers as long. as saw an we XX:XX active both increase year well we've that all of acquired spend, seen the her in during QX we've

improving is related both channels in we're throughout it this standpoint. both to we So, for acquiring QX the how and year

We to and guidance. have well on into what spend as well had expected And we're as additional have that's our QX beating of growth as as track active customers, in embedded the far as number we if not per the customer.

Mark Altschwager

more can gross can XX:XX call, want detailed you. digit the just two kind QX yet, high but you a that Okay. understand guidance Thank low I speaking to? the algorithm overall, the year twenty growth be to growth up comments, until twenty then, following don’t a And EBITDA or think you of mean digit you been double twenty single twenty we as sales about two had Thank give on you. say formal

George Wehlitz

haven't formal two. guidance Yes. Again, any for done XX:XX we twenty

QX. do our will during that We

digits think in mid-teens. I single for the the thesis committed and in to term we be sales remain still our our high EBITDA our overall to long be growth to

Mark Altschwager

XX:XX Thank you.

George Wehlitz

XX:XX Thank you.

Operator

Telsey with question is with final Telsey your Our proceed Advisory Instructions] question. [Operator Group. Please XX:XX from Dana

Dana Telsey

how everyone. area real year believe Thank afternoon, expense little opportunity next you it estate estate five lately? thinking and color for cost the was on stores, on leverage? a you real about the are Can you and you. XX:XX Are more Good track? twenty still give I

George Wehlitz

number XX:XX what they happy of the there with that positive Sure actually customer probably acquisition the related with would we [Technical from the ninety our being grand than twenty with looking our be reaction, perspective, we're five EBITDA at a looking that happy over approximately positive and our twenty we we're also stores. fall but standpoint locations. as to with opened. standpoint a very We're XX:XX better store we fleet we're Their fleet is From that twenty at two, in delays, and twenty existing So, construction twenty of as our very perspective, part new started number fleet with out trends just very Dana. thought from existing openings do from at they’ve at From happy and and are three, of a similar but stores opening how on around far positively some five two, at even twenty had a stores, pre-COVID point. both XX:XX new as sales well into existing real again, new stores out customer we perspective. we're are there estate a could opening seeing twenty with this Difficulty] from percent our track

very happy with we're So, it.

Dana Telsey

you then internet? is footwear, expand the XX:XX Thank In And you. how occasion newer that would particular for you? cotton, on inflation one anything Okay. And regarding of special was important that or scrubs want of follow-up. the beyond dynamics, to be the categories, then any interest with

Liz Muñoz

Yes. XX:XX

that So, – us at it other was fiber not not cotton is big companies. as as might to be

our heavy. percent it's in the are range three cotton think of products, I

located. in really have most we throughout, good opportunity as areas the we seen As or around where in we not there's our challenges had I prices much denim. a in so price XX:XX value good of from delays cotton sees board, it’s higher specific kind far seen and the the even business boots, meaningful So, lots a of new of because The for of customer. which We're cotton, have biggest know, we've being just think sort a we, seeing necessarily across you cotton tees the with cotton. customer have specifically mostly categories, really, and not impact the driving response

it building for stability, are and have our this with customer by. putting cushion in to shoes, tasks come wide We for very, difficult very larger years reinforcements spent frankly

are today opportunity. engagement believe currently I excited website what more have couple with have done on the to we XX:XX we experts more we're opportunity with with about well. forward would and an we again XX:XX well. And that there's think So, And Lovesick very their a continue to did a not and that think go accomplished We know is excitement brand there's scrubs. we world categories, of have opportunity our customer to really and then we there drive that think collaborations and we performed the in we the bring scrubs, has I test, say, brand it

we you want. if was and sure intended about see So, look will offering occasion, just know that out sure that one make doesn't to meaningful learn we even really her, special a XX:XX we scrubs continue our for wedding for There have, that. will really more making we her does to the to excitement And We fabric few hear dresses then that test with weddings put to things can at she and what that we of from We that the it's and go or a as occasions. ramp did customer wear customer create whether on – it's deliver half items little there. forward, for can back the one want to year in is that [black and up [ph] we the is continuing so parties fit. dress] other the

Dana Telsey

XX:XX Thank you.

Operator

Please question next with proceed from XX:XX question. Chen Oliver with Our Cowen. your is

Oliver Chen

think We about or and customer most? the customer general the XX:XX getting Hi. about customer had Liz ESG sustainability, more mind and you bigger broadly cares Thanks picture younger in. as the for and what's on do this about the think your for what me you a priorities in or key Thanks. question

Liz Muñoz

sustainability around particularly that something we ESG, are is So, XX:XX working on.

that and we both is will of helping will commitment resource over a outside long to and we that be term. point us what our our really customer be We have form have view the into and together committee ourselves put what we have our an

come on on. what So, to what the look what XX:XX journey now that's five, by what like focusing this. will are will we're twenty like going we're be and is, working actively out and it say look twenty and we does we So

and it's denim and different me, how excited produced, I is of water, one of that it's the one about lots is step used. of offensive – I'm lots little a things that most things For

we're assortment either to far excited never lasers The the method have We of move processed tackle blue more no by create is jean with a that does customer third know, treatments but involve water category. like for not at would production was So, involved. at to a water category other we're that really that. stonewashed. looks our all, managed And or as but about it's going sustainable been least to XX:XX like with that

long focused our term are think I is that some reduce we what's that and are that of footprint on important to to customer to and sustainable. we our really offer far have plan things more sort

Oliver Chen

are XX:XX Curve And encouraging. engaged? Okay. Thanks terms been really What's you generally, in the on what the nature see, more distinctions? customers any lot. And of do a if that the comments as have Curve of acquire you and customer them keeping there's priorities new

Liz Muñoz

just their you When demographic about age are I'm customer? you Torrid or different curious. the and do customer, their they XX:XX the ask from mean

Oliver Chen

out customer characteristics perhaps that XX:XX differ and and brand terms in Yes. much product stand of either? Curve so any the that I acquiring was don't portfolio curious with they or about

Liz Muñoz

the biggest Torrid is than think core XX:XX really The the and customer she slightly That's differs I customer. slightly younger that shift.

bras. I XX:XX that into but do very what immediately. that found on it the are are we new hand is, that Curve is about of particular phenomenal And has found as florals distinctive bras that brings gets think buys beautiful whether is we core that the or marketing we have is we she very free Curve in the so to brand. differentiated set do, I what thing second bras excited think it new apart the a special wire about she a prints that in we have whatever are prints really customer those rendered other how have our The are bras, is, what's exciting two – it's customer category

space the or vast for not big up it a customer is the profile free is comfort of really, does market. give wants willing wire a in but The her. sexiness this to the think the what really I bra, or

lingerie makes that is the offerings about that. very and but about understand customer, often that all given of she feel playful, sexy have up excited things think incredibly of she a both maybe And has a think don't just being this the have. she excited that that plus like I wire We been and then of is push she's and I people finally, XX:XX free lingerie size loves is and to free bra wire is really beautiful one her bra

also lingerie the moment another great has sort of a the business part think void I been market. So, exciting in and in the

Oliver Chen

XX:XX Best Thank you very much. regards.

Liz Muñoz

Thank XX:XX you.

Operator

end turn and reached for closing session, We I over the have question the XX:XX the now and to answer Muñoz Elizabeth of remarks. will call

Liz Muñoz

XX:XX I the just for want on brand. interest to call your in thank everyone this

she We we're Torrid, what customer, are for we are about, is only changing the how how doing continue excited of be her what not stores about future our we her. to brands, very excited the but and life, do for

into for with again, of you. call. you discussion So, so much we soon. our all We’ll more you see look to thank forward coming And

Operator

this may participation. you lines at disconnect concludes time. This conference, XX:XX for today's your and your you Thank

Torrid (CURV) 9 Dec 212021 Q3 Earnings call transcript