CURV - Earnings call transcript Q1 2025

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Operator

Greetings and welcome to the Torrid Holdings, Inc.

First Quarter Fiscal 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chinwe Abaelu, Chief Accounting Officer. Thank you.

You may begin.

Chinwe Abaelu

this Officer. thank financial joining quarter Torrid's Officer; at Financial results XXXX, Ashlee we new and to call of Torrid's investors.torrid.com. With everyone, be Wheeler, Torrid's which our can Paula Chief the and Chief discuss for released Lisa me afternoon, today you our Planning call Torrid's for Dempsey, today fiscal found on Good on and are website Harper, afternoon Chief the Officer; first Executive

Before I harbor you which statements, with. started, underlying we the I'm of make and may familiar remind get assumptions. to like would you're company's forward-looking language, safe guidance Management including sure

should, similar current expectations limited statements risks Forward-looking statements differ June and plan, uncertainties words on containing estimate, results statements meaning. are materially. could These words based as actual the to assumptions may, XX, believe, are and terms to and All XXXX. include, may statements cause other are forward-looking of not today, of to, expect, and will, but that anticipate, subject

most these are For the measures risks will release SEC as to see our related that, adjusted the our on measures, call website. With with Reconciliations to non-GAAP SEC. filings I included turn This EBITDA. in to our the of over the will the such measures further to contain Lisa. business, comparable furnished discussion GAAP financial non-GAAP to earnings and available call

Lisa Harper

and XXXX business. Chief He an promoted IT systems that our has Park of stabilizing announcements joining our our thank overview and and start for the Torrid afternoon, us discuss followed important Hyon Hyon instrumental Good you supports Today, strategy XXXX. I strategies Chinwe. for performance team, Technology Officer. quarter by executive quarter has about that you, announce I'll Chief am our the our of to Thank with joined first some leadership been our Operating in growth to an executing first results. as Officer. been to thrilled in

We also promoted to announced Wheeler Planning has been Chief that Ashlee Officer.

Torrid merchandising driving and Vice Planning. improvements XXXX, to been Mark has with him grateful in since has Senior I'm member most Ashlee She roles for Torrid Torrid and after key history out of planning as the wish appreciate is a of our entire now played and role a in allocation recently a retirement we number as serving We in long Torrid our Commercial Mizicko, of a and staying consultant optimizing with our over to group. And retiring. very he and join the announced consultant team. a lead of retirement. best coming and as working inventory leadership Officer, as the pricing is will very planning that year finally, all us a are Mark past done for management grateful Mark has on strategy that Chief and President that him the second

results, fiscal In to first disciplined with higher strong Turning the gross by our EBITDA management. adjusted are expense we quarter, expansion and XXXX. pleased margin our driven than start delivered to expected we

on tightly inventory $XXX ago. with the sales and were our We year in quarter focused down to controlling compared million EBITDA. million For $XX in healthy adjusted generated remain inventory which quarter, XX% the ended X and we levels,

event. had points. trends in continued saw results merchandise terms breadth we In a we balanced progress we our as of assortment as responded quarter, our price styles improve key the stores, on and successful Customers reflect through both very Our quarter well initiatives. traffic moved Cash to first as of Torrid

regular in price comp strong graphics, denim. the sales we knit quarter, tops, and experienced During

second of relative reduce strategic price the at While in comp the and the to overall decision the toward sales quarter, to year's the strength regular declined collection. decline comp significantly due to of positive into our promotion. We sales demonstrating new quarter, it a levels end for was inventory primarily drove quarter clearance and last

expect response move which and a positive strengthening non-denim cost casual a focused and response merchandising The the woven our to received and to we working the top-line that of and saw capital tops, a casual as message, stores. fabrication and feel dresses, priorities, bottoms. less of and dressy inventory drag be through balance were better improving our on remain marketing profitability comps with our of sales on our pleased year. We styles. assortment, will and collection executing supported spring reintroduction well Challis optimizing our We through our a clearance more reflect We our strategic to was look management. We

improved across categories. we assortments, collections. opening our our We of balancing offered to more addition the pricing architecture points In price

in As Asia. that We our the the visited position Torrid in new factories evolve key to factories to and fabrications efforts part our worked recently model we get enhance for our to into on source we react come this of chase our More us known future. to to back and for. with assortment, are

to new beginning results of Turning improved is engagement. acquisition deliver form our marketing, the platform to customer digital and in

During our the has the we thus incredible. launched quarter, far response Call and model contest, search been Casting

more in minutes. provide few details will a Ashlee

Moving of to to terms levels working in units. initiatives of cost capital, our we've inventory both successfully implemented reduce and a number

to and down was inventory we led expect lead This to year XX% we the to double end a continue move significant as to in efficiency capital the will inventory end digits. X has with the cost of year due our year. ago, working Our through the at improvement to compared down quarter and

our priority key to evaluate for store fleet. is strategic Another carefully us current

We on a our our comprehensive optimize to analysis are working store of footprint. base store

market conditions, on based reevaluating are We stores and profitability. characteristics, our center

stores of are handful our we right the a customers. at sure only in make looking to location perform all are stores for we standards, below our While

perform that better on lifestyle stores. average have centers found stores our mall-based We than enclosed and

updating quarter benefits we've are well-positioned execute This we that to of we and continue and improve deliver work expectations, in progress growth for are our findings closing, consistent you this financial shareholders. to our results the of realize and We to consecutive in and the and this on tremendous process on and of the believe marks our financial year, are our year. In we look another beginning results. to later past early forward made the over stages delivering

Before over do. I I associates now I strategies merchandising amazing our marketing outlook Paula the call heart we call, Ashlee, the review thank plans. fiscal to then of our to financials everything review are of Ashlee our for to who team XXXX. our would welcome turn will will like and at who the and will

Ashlee Wheeler

appreciate begin the marketing provide and today you on initiatives then I responsibilities take update discussing I me, an in will by strategies. am excited planning optimization margin and additional have Lisa. our organization. Thanks, lead and our the on I to confidence and merchandising

to pleased are business product margins, discounting quarter and in during improvement our a with We sequential our well product are price attributable expanding which as reduced and as costs lower promotion. regular the

in margin Our sales supported ] shift tops and denim which by regular positive in a and comps, price and businesses were and diversity price particular [ points opening saw shape. leg

our initiative of while success shopping maximize assortments higher yielded greater to which promoting overall We adding of e-commerce build our is in margin our in-store the cross-channel expanding performing best continue have exclusives, allowing margins. a also potential experience for inventory to customers. the and and investments by This us sales on higher sell-throughs

our the allowing accretive expansion to also price to continues expansion to assortments sell greater in stores, more margin store our and feeder regular profitably, markdowns store us of effectively gross in be order. clearance contributing initiative supporting Our while

commitment the further planning, allocation XX growth inform will our quarter the in launched We this our robust and XXX to support total to financial have hindsighting feeder a system. balance investment first is and our the allows process successfully clearance which end approximately optimal stores, of buy and our multidimensional assortment of stores the of implementing fleet. In much and more decisions by believe maximization, second merchandise help are assortment, suite, our module which margin We we we accuracy. for of productivity improve the overall of for and

Additionally, build believe this expansion. be for first in-store regional will will and of this current further our the We success basis upon the step optimize the in helping form store-specific the assortment and assortment. of future

of launch year the modules remaining of XXXX. this the throughout early We see balance will the and

has Turning last We've customer since for in reactivated and to energy first fantastic of are model far. was launched the customers marketing, this campaign our we popular sentiment Customer and we nationwide call, and face launch. search been positive our the a swing observed response high. remarkable The These in ran X-point events the X driving seen and Torrid a X-point comps have casting a loved events it. April we swing to XXXX our in acquisition comps customer time so incredibly in XXXX. significant traffic Torrid find campaign to positive new

chosen is XXX and this our ultimate Casting parties final winner in the full-scale event We summer will September. host in-store before casting Call

and We customers continue our in in the were platform agency, leverage action throughout accelerating media our sequential valuable and digital to able with take allocating in data reactivation we spend file lapsed to partnership our improving our see with acquisition quick, to of customer customer improvement from marketing trends insights comparisons decisive year-over-year. In growth quarter.

upspent both a the optimal enterprise during us to test and for also near-term investment level value. conducted long-term We [ ROI digital ] help quarter understand maximizing media most first of the

we will this our marketing apply We approach test future as learnings from investments.

seeing accretive in the to Lastly, drive card and more each now to We growth. believe we sharing the will credit loyalty pass enhance Paula. ways value propositions. evaluating look of results private will opportunities these next forward and label I are We that, our long-term quarter. With to with program are there you call initiatives that

Paula Dempsey

and XXXX. We're you Planning us our first will joining role a detailed fiscal thank Ashlee, congratulations everyone, today. by pleased outlook now our followed you, for Good for performance, on our Chief of as discussion with new quarter with afternoon, first begin quarter Thank and results. the Officer. I

Our expectations products promotions, to X improved XX% margin exceeding $XX ended down our XXX We us as gross with ago. responded line expansion. Adjusted the guidance. offering, points our EBITDA with healthy product in to which our million, to year customers to enabling sales of was inventory quarter levels with led combined basis were reduce

year. first at declined levels due year million to X% million came ago. lower net sales quarter, primarily in store to For sales clearance to X $XXX of sales $XXX the compared last relative Comparable

million reflecting $XX.X in-store of expenses a productivity, negative quarter and net improvement million, by $XX.X investments in is e-commerce labor cost while improved to primarily expect lower were regular by bonuses see year, comp year. of sales, compared We profit to $XXX a XX.X%, of $XXX increase increase driven gross or year continuing net performance points and offset product increased XX.X% markdowns. SG&A to million through to partially we both clearance last fewer comp XXX by The the abate to of driven margin million, last the or XX.X% in fulfillment. and technology sales move basis as sales. Gross from price impact

incur expenses not the did we performance bonus reminder, of to million year. Marketing $XX.X a quarter compared were expense the $XX.X quarter last As year. million last in in first

compared basis As of marketing increased the X.X% last a of percentage quarter XX points net in first X.X% to year. sales, to

Our last the same net versus share, $XX.X the was income million, share, million, for per or for $XX.X or net $X.XX of income $X.XX quarter per a period year.

believe $XX margin million and important In GAAP to is manage addition points net of evaluate to that Adjusted basis use and we adjusted that measure EBITDA an XX adjusted was our we increased business. to EBITDA XX.X% sales. measures, EBITDA

the balance no the our agreement. on end borrowings equivalents cash at credit were million to sheet, and revolving of quarter cash the our $XX Moving and

million of $XXX the under end including the million liquidity at in first of to borrowing quarter total compared was debt quarter revolving our XXXX. agreement Our million. available $XXX the capacity was Total $XXX

levels improve, ago. to to quarter $XXX down $XXX compared with inventory ending X million XX% the continue to Our year inventory million

we growth focused expansion rest sequential our with and strategy across our the $X.XXX executing to range comp less and net and the improve of through XXXX, initiatives, gross between project to channels. We clearance price pricing, fiscal improve ahead adjusted and increase margins in stores and cost year $X.XXX to to billion effective sales We expect sales online remain for EBITDA cadence enhanced negative productivity a of billion. Looking comp. regular on quarterly

margin reflecting year. EBITDA been tightened million QX through million, the Our $XXX to recent adjusted from carry to results our benefits that we'll guidance has $XXX

which margins technology inventory opening include percentage investments driven price points, is by Marketing and gross are $XX to to incentive compensation to of expected reductions expenses new a expected well with systems be expect as year's of as to stores. last million costs, We the XX in remain improvements sales. Capital million, are levels owing in in projected opening to to technology, as to fewer and with between XX expenditure $XX new align investments and robust, remain promotions product due investments. levels. SG&A better sustained QX consistent to

some me Let comments fiscal second provide XXXX. our the quarter on of expectations for

we last million our points XXXX of of initiative, be to for EBITDA changed to same For the year, sales $XXX percentage to XX range the expenses million. Due our between and our business. strategic year. To improvements be the capital and working strong as to making marketing include $XXX anticipate across have in highlight delivering million basis investments the and XX margins, Casting a adjusted increase conclude, $XX expanding ongoing to not our $XX the and million Call of second sales basis period workforce, to QX points results quarter, project versus priorities launch solid in our technology net This results. and we

portion call our the will call. I of over turn the Now, the begin to question-and-answer to operator

Operator

Morgan Stanley. Instructions] first [Operator from question line the with comes Straton Alex Our of

Alexandra Straton

the for It the back improvement just nice quarter. half. on a top-line Congrats like in on looks wanted relatively there's guidance in large to year. focus the assumed a I

I higher love then what kind consumer months input assumptions understand on to And talked X now, ago. when also would are outlook of compared that. X level, to we want to driving So just your just maybe

Paula Dempsey

with also Wheeler. it's new here Ashlee And me I Chief Yes, our Officer. is Planning Alex, Paula. absolutely. have She

you're So correct.

that it's we experience color. primarily But little comp improvement provide lesser going lesser And the impact clearance the Ashlee having more can see, that of we of will in will second had. half have We and to bit a year. from come

Ashlee Wheeler

time, the We first we've Yes, that continuing latter to our to and the improvement of now in expect see already expect We're so part we observed. it price quarter. regular business, in sequential X combination see which things saw to abate the the top-line. expecting through to drag yield continue. same we as half of of will At clearance the the year. that from comps progress higher latter And those the

Lisa Harper

to on products we're on price lines. we're are we're less profitable it's What innovating customer that seeing the essentially generate casual, with with -- And opening receptivity happy becoming about point Alex, to able sentiment, and more as and even sales. we then better clearance, is

that move it, As comp less our very likes while we forward providing to on and we her think the the voting product, that of with compelling inventory we've think she's and said, as optimize because And improve able I if still have a drag she will margin clearance. stringent practices were of product. on

Operator

line of comes Tarlowe Corey Jefferies. question next the with Our from

Corey Tarlowe

growth what store to your reasoning early a remind reevaluation. of are fleet the just for just the store curious that it as Lisa, maybe fleet and was are, to the you of think and expectations are you mentioned profitability what what get some well. present is, behind what as the as economics driving I reads perspective or some the at us about of unit your there, of

Lisa Harper

lot stores a of opened in We and XXXX Sure. 'XX.

move aggressive year our And lot were XX% store XX -- time where balanced outdoor about between before, in and like as starting to to we we're 'XX. to stores -- we're talked So in a the And of we'd a stores XX% split lap overall to about -- centers. over of stores to pretty right mall a growth now ultimately more XXX a a 'XX outdoor that XX/XX enterprise. opening really and our core mall and we of be history We to bit with around think we consider centers. in we've

activations store surrounding expansion that there, the model reactivation acquisition, acquisition that customer with and customer watching the Ashlee search, mentioned so we've we've of seen response we're happen. the terms and enormous In had and

have like events XXX that. We

summer the have related balance to planned of for XXX We events that. the in-store

take we're that are still really improve think store and experience to going from that. and activation. learnings the that drive this on seeing So we We

critical. We an between that do, stores are an more there's and feel opportunity mix of believe from shift still I mix to mentioned, as somewhat we strip. even mall a So of even

I Our points would strips XXX higher and deliver higher EBITDA about, sales. margins of basis say, with

the the is and all the it's so shop enterprise just and to more experience choosing appropriately. on part fleet which evaluation to the of think often she's focus on to is, appropriate really center -- And and in the now work for the aging to analysis well the redistribute and of opportunity an it's parcel where we more of with more kind as strip shifting fleet kind as to overall environment. customer time it her about of of outdoor fleet And XX-year the that's think the

Corey Tarlowe

And in then know be what this I one we've a of shift top attachment think means upsell opportunities? you has a asked then been maybe Could you little or wheelhouse, leg. to Ashlee maybe ability use that your talk denim the to for probably about would the, into I been within think, wide Torrid trends about that bit, that trend to more how the other and

Lisa Harper

start, are then are going this has shapes in I'll we've of Ashlee that is lot things in product the and of in our the that Corey, we leg but offer. as shapes had year one with the innovation breadth successes into well. that one we seeing information, And a of and leg non-denim denim

leg So bit well wide delivering leg, wide all think flare is a Straight is very still worked. and on little leg the core. as straight boot obviously in We're have behind but as we've critical. good been I

we've point, what's to that. And is more non-denim, certainly of our denim prevalent and denim, So respond both seen cycle in the exactly right. now, about customer in to leg the very right in you're variety shapes. great your And positively

been the to on think and with I product that tops that change been think shift of into opportunity That focused and has that for has the work very to proportion casual something us. the mix. more I the we're the shape positive offering

the about specifically. more bit Ashlee can talk category a little

Ashlee Wheeler

tops we've businesses. to Yes, our seen response great

regular -- We're wovens tops, and dresses seen too. positive, remarks, to starting the in price see As graphic in we're seeing our I positive turn we've actually knit noted comps at prepared turn tops.

the across we're to seeing board, more our product. So receptivity casual

Operator

comes line next Brooke question the of Sachs. Our from with Goldman Roach

Brooke Roach

you lapse customer customers those that customer the what reactivation results and today? As actions your share are can Lisa, those business wallet keep acquisition and you in take customers? seeing expand new new planning to to on of you with look elaborate you're ahead, your

Lisa Harper

you the thank Brooke, question. Sure. for

acquire We value what the and earlier, the that started is seeing what saw model positive believe minute reactivation. been It's we we are that, we of the to to a so search we are seeing and enterprise beyond basically about activation very talking that customers. the activities using are would calendar we what our we that going was some a focus tactics place of we store are as I say the more reaction I are expand providing but the of culture and that or XX%, kind to opportunities expect customers, room just behaviors room We very know and of that store. service a positive base that in impact on by but conversion well. We're above at stores activity had in loyalty a for dressing has room have behaviors very we impact. room special dressing and our the dressing to it focused a broader know not for positive sales rebuilding we as and positive continue and dressing is store

saw the We with to customer, our of fourth stores new our particularly but are trend in kind and that customers. I customers then event, customer in reactivated and the new reactivated. file started of we an would see that the we continued starting say the popped activation And quarter, improvement

broad a very we to want positive Ashlee? event that -- have talk in the store that and initiatives about felt was initiatives to the environment. Do that more you that we anything, to reaction So the

Ashlee Wheeler

file. which sequential file ago, customer in we reactivation or seeing No, to improvement very were just customers the adding year Attributable reiterate we said, acquisition. confirm encouraging. also customer is as to but new Lisa I stabilization in that than We're would the more are X

direction. So both very moving positive a in

e-commerce allocate We we way partnership and ROI enterprise more the EBITDA channel. to I to driving the think year marketing both third-party marketing maximize have of channel value, in so more more and us on our had than the and responsive the digital really that's intelligence that X investments, allowing flexibility our digital with ago we store agency be

Lisa Harper

of, I going now also the we're adding that, loyalty testing are to midst enhancements that we've phases And and done our frequency. drive we to work in will the think of the through program

in things there that of group the year. rolling we and but that evaluate brought in are there good half some, so to special the And help loyalty, we'll we change we of we we're a terms shape And that points where with in loyalty, in be some think are can events drive with back out bonus and frequency. are really core that

Brooke Roach

year? then the those the you the of saw lower you for the then remainder relative product each benefit quantify you to you Paula, markdowns that And drivers quarter between that gross for for this of costs? maybe on can magnitude benefit expect elaborate And can margin of the X the

Paula Dempsey

QX as it, fairly down with QX. would items, would majority ecstatic say say QX and coming of and I expansion seen margins, bit happy we for to to be continue we're saw Yes, with Brooke, to in QX, from that through little truly in regular progress QX benefit should we're saw a that benefit see absolutely. the So margin that QX through coming was we've the through and our we're in year. what right? I the going that the and similar you benefit in priced gross But we again, great our tempering

Ashlee Wheeler

of X/X the far see progress add of just we year levels markdown. discounting continues goods, Yes, but specifically, inventory the and have so second will as with to benefit continue that see was from the cost ] we experienced from margin from to [ discounting that from lap of about that cost start margin truly to not we'll quarter product benefit reduced further we invert relationship we reduced of that QX reduced. we balance that benefit product, of our would and into saw, what remaining a product the start through expansion, where X/X I some the that then other in gross We'll fully-baked

Operator

Marni Shapiro with next line of Our Instructions] Retail from the question [Operator Tracker. comes

Marni Shapiro

great a on like. That's improvements, Instagram. hitting to just feel milestone million I also get little bit in a little Curve? And some bit quick wanted and like also, I dig big on a just Can then on product congrats the a update X more. on we to Congrats

the of younger Torrid curious if be like sexier happening feel turning quickly. just edgier, everywhere very the seems bringing stores is if that's that on I'm I Some a what shopper I'm then to follow-up in I'm seeing maybe very very, just in. And product the And is a stores. or

planning about talked merchandising. You the and

the I they're blown Sometimes in The gone. so stores I'm poof, gone away. and just fast. walk sets Like are then amazing. And is good what's

and So more part the get things into to is planning to better there's implementation to there. stores, of of little the bring on a so of merchandising handle when sort consistency replenish, a when

Lisa Harper

Marni, I say into deep are and that frame rework a Curve. we will

really see has too in we'll and year or the robust and about we're next year as We of for are bras the you'll 'XX we do really X.X 'XX. that old, have Our into we to of launched core best-selling early bra a this developing throughout in are half year pads start throughout years bra -- bra pipeline quarter now. back first launches accelerate haven't a -- some that into going go and

lot a are in kind of up, exited I consistency reactivate, that encouraged for a customer. bras that able Curve core full of the longer very a So we to sales. to of have doing but basic of eliminated terms core we that that opportunity assortment that think, we're minimizers, some and work from be And frames the bit little ramp we're coverage, it's going there's we've the

a I is and to rebalance as put vein kind through of important this of sexy, that of actually the add impacts terms really for been what I'll into tell had promotions. kind think deliver less us. is we've the in has back our moved really so any we've we as time And negative most In we've we worked I out it. that for period thing X you worked casual that think, weeks, to have every inventory. over about structure edgy, assortment more pricing pull with us, more AUR We in we room balanced really as hasn't It's anticipated think do to well

still the expect we digits the improvement mentioned, do down basis because particularly in we on we are our channels, be turn happy but we ] As the to double [ end a stores. in -- year year-over-year with of all

and more stores. the I think in getting the are alluded a to -- stores focused assortment first Ashlee quarter. And breadth the but of we really this, on into overperformed more

And there so can stores It really about as faster. to And XXX our for options in are back we everything provide customer. are choices to hold the and a fleet we more can in while to not a that have turning the closet additional we're the customers. thesis firing mindset going in trying that our store have on focus younger existing allows our

of to seeing is. the to results and the the now we as over we're ease are in So trying last those innovation Ashlee. balance one all of of early lot of think and shape teams last of and that throw the things remember a continue terms the are the that part year. Then to and play question in of fabric what and fashionability doing, there's a I lot I'll of great expect kind work I'm

Marni Shapiro

answered corner. planning of and have the your that? like which the it systems business, you graphics merchandise No, seems significant of are sort forward a exactly. and a think of had actually me I is follow-up which to denim ask turned one if the in Torrid, win As just were always about last Can now in kind place I sort on to

should Is strong that that in be very be a she that are forward even walk denim good. and turns So if it the to here's in stock things faster and is thinking much graphic graphics in there out is and is sort bit? and always the fashion stock, as there a turning, something that's the need the headset new if just too assortment, you the that should always actual it's sold where say little bad, of graphics, and that and missed then

Ashlee Wheeler

you Yes, think it. nailed I

we're aiming that's for. exactly think I what

Marni Shapiro

real your one I last And off-mall, in. co-tenants? then if On estate your could favorite one just it who are sneak

Lisa Harper

places, put almost that It every works. works it mean, center outdoor Marni. lot I a -- every into, we it so of

so the And co-tenants aren't being as in critical right just centers. as

Operator

with We of our end to for question-and-answer have like Lisa over reached comments. would that, Harper And turn closing I the any session. the floor to back

Lisa Harper

joining We care. sharing next for Take progress the today. everyone call in Thanks quarter. to for look second forward the us

Operator

lines concludes at today's teleconference your your for participation. you Thank you time. This may disconnect this

Torrid (CURV) 12 Jun 242025 Q1 Earnings call transcript