US' Torrid posts net sales of $284.6 mn in Q2 FY24

06 Sep '24

2 min read

US' Torrid posts net sales of $284.6 mn in Q2 FY24

Pic: Torrid

Insights

Torrid's Q2 FY24 net sales fell 1.6 per cent to $284.6 million, despite a 6.4 per cent increase in regular price comparable sales.
Gross profit margin improved to 38.7 per cent, and net income rose to $8.3 million.
Adjusted EBITDA increased to $34.6 million, with inventory down 19 per cent.
The company opened five new stores and closed six.

Torrid, a leading retailer for plus-size fashion, reported a 1.6 per cent decline in net sales for the second quarter of fiscal 2024 (Q2 FY24), reaching $284.6 million compared to $289.1 million in the same period last year. Comparable sales decreased by 0.8 per cent, though regular price comparable sales grew by 6.4 per cent during the quarter.

Despite the drop in sales, Torrid improved its gross profit margin to 38.7 per cent, up from 35.5 per cent in Q2 FY23. The company posted a net income of $8.3 million, or $0.08 per share, compared to $6.6 million, or $0.06 per share, in the second quarter of last year, the company said in a press release.

Torrid's adjusted EBITDA increased to $34.6 million, or 12.2 per cent of net sales, up from $32.2 million, or 11.1 per cent of net sales, in Q2 FY23. The company also reported a significant 19 per cent decrease in inventory compared to the same period last year.

During the second quarter, Torrid opened five new stores and closed six, ending the quarter with a total of 657 stores.

“We are very pleased with our second quarter performance, which came in at the high end of sales guidance and exceeded our adjusted EBITDA expectations. Customers are responding to our new product offerings, resulting in regular price comparable sales growth of 6.4 per cent, and gross margin expansion of 323 basis points,” said Lisa Harper, chief executive officer.

Fibre2Fashion News Desk (DP)

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