Torrid Holdings Inc (NYSE:CURV), a direct-to-consumer apparel, intimates, and accessories brand in North America for women sizes 10 to 30, stock fell 6.51% (As on June 13, 11:15:26 AM UTC-4, Source: Google Finance) after the company posted mixed result for the first quarter of FY 24. The comparable sales for the quarter saw a 9% decline. However, the company’s net income showed a slight increase to $12.2 million, up from $11.8 million in the prior year’s first quarter. Gross profit margin improved significantly to 41.3%, a notable rise from 37.7% in the same period last year, attributed to lower product costs and an increase in sales of regular-priced products. Adjusted EBITDA was $38.2 million, or 13.7% of net sales, compared to $38.3 million, or 13.0% of net sales, in the first quarter of last year. In the first quarter, the company opened six Torrid stores and closed three Torrid stores. The total store count at quarter end was 658 stores.
CURV in the first quarter of FY 24 has reported the adjusted earnings per share of 12 cents, beating the analysts’ estimates for the adjusted earnings per share of 7 cents, according to Zacks Investment Research. The company had reported the adjusted revenue decline of 4.8 percent to $279.8 million in the first quarter of FY 24, missing the analysts’ estimates for revenue of $280.2 million. Cash and cash equivalents at the end of the first quarter of 2024 totaled $20.9 million. Total liquidity at the end of the quarter, including available borrowing capacity under our revolving credit agreement, was $137.0 million. Cash flow from operations for the three-month period ended May 4, 2024 was $27.6 million, compared to $11.2 million for the three-month period ended April 29, 2023.
For the second quarter ending in July, Torrid Holdings said it expects revenue in the range of $280 million to $285 million and Adjusted EBITDA to be between $30.0 million and $34.0 million.
The company expects full-year revenue in the range of $1.14 billion to $1.16 billion, which hovers around the analyst consensus of $1.142 billion. The company’s forecast for adjusted EBITDA ranges from $109.0 million to $116.0 million for the year. FY 24 Capital expenditures is expected to be between $20 million and $25 million reflecting infrastructure and technology investments as well as new stores for the year. The company plans on opening 15 to 20 new Torrid stores and closing 10 to 15 stores.