US' Torrid's sales down 8.3% to $275.4 mn in Q3 FY23

The company’s gross profit margin was 33.2 per cent compared to 34 per cent in the third quarter of last year. The 80-bps decline was primarily driven by a decrease in PLCC Funds and deleverages of store occupancy costs as a result of lower net sales, the company said in a press release.

In the third quarter, the company reported a net loss of $2.7 million, or ($0.03) per share, compared to net income of $7.3 million, or $0.07 per share in the third quarter of last year. Adjusted EBITDA was $19.4 million, or 7.0 per cent of net sales, compared to $32.1 million, or 10.7 per cent of net sales, in the third quarter of last year.

“Our third quarter results came in ahead of our expectations on both the top and bottom lines. Our customers responded to our new collections, as well as to our new marketing initiatives, which drove improvements in our traffic trends in our stores and online, leading to sequential improvement in our comparable store sales. While we know we have more work to do, we are encouraged by the trends in our business. However, given the current environment, which is promotional and dynamic, we are planning our business accordingly. We will remain focused on controlling expenses and inventory to position us to continue to deliver improvement in our results,” Lisa Harper, chief executive officer, said.

For the fourth quarter of fiscal 2023, the company expects net sales between $267 million and $283 million and adjusted EBITDA to be between $9 million and $13 million. For fiscal 2023, the company expects net sales between $1.125 billion and $1.140 billion and adjusted EBITDA to be between $99 million and $103 million.

Fibre2Fashion News Desk (RR)