Torrid Holdings Inc (NYSE:CURV) stock rose 6.87% (As on March 21, 11:25:56 AM UTC-4, Source: Google Finance) after the company reported better-than-expected fourth quarter results and provided an optimistic outlook for fiscal 2025. The company noted that while Q1 started off “choppy”, trends have been steadily improving as the quarter progressed. Torrid ended fiscal 2024 with a strong cash position of $48.5 million. Total liquidity at the end of the year, including available borrowing capacity under our revolving credit agreement, was $158.0 million. Gross profit margin was 33.6% compared to 34.5% in the fourth quarter of last year. The 90-bps decline was primarily driven by lower sales. Net loss of $3.0 million compared to a net loss of $4.1 million, in the fourth quarter of last year. Adjusted EBITDA was $16.7 million, or 6.1% of net sales, compared to $16.4 million, or 5.6% of net sales, in the fourth quarter of last year. Last year included $2.3 million for the 53rd week. In the fourth quarter, the company opened 1 Torrid store and closed 22 Torrid stores. The total store count at quarter end was 634 stores. Cash flow from operations for the twelve-month period ended February 1, 2025 was $77.4 million, compared to $42.8 million for the twelve-month period ended February 3, 2024. The ongoing store optimization strategy includes balancing the fleet, enhancing store economics, refreshing store environments, and aligning the sales channels more closely with customer demand.

CURV in the fourth quarter of FY24 has reported the adjusted loss per share of 3 cents, beating the analysts’ estimates for the adjusted loss per share of 6 cents. The company had reported the adjusted revenue decline of 6.1 percent to $275.6 million in the fourth quarter of FY24, beating the analysts’ estimates for revenue of $262.85 million. Comparable sales declined a modest 0.8% in the quarter.

For fiscal 2025, Torrid expects net sales between $1.08 billion and $1.1 billion, in line with analyst projections of $1.1 billion. The company also forecast adjusted EBITDA of $100 million to $110 million for the full year. FY 25 Capital expenditures is expected to be between $15 million and $20 million reflecting infrastructure and technology investments as well as between 4 and 8 new stores for the year.

For the first quarter of fiscal 2025 the Company expects net sales to be between $264 million and $274 million and Adjusted EBITDA to be between $24 million and $28 million.