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Torrid Exploitations (NYSE:CURV) shot higher in aftermarket trading on Thursday after the plus-size retailer beat expectations for holiday quarter sales.
Total sales decreased 5.5% year-over-year during the quarter to $301.2 million. Comparable sales decreased 5.4% in the quarter. Active customers grew 2% to 3.9M. Average spend per customer fell by 3%.
Gross profit margin decreased 70 bp to 31.9% of sales. The decrease was primarily driven by higher inflationary costs and promotional events, partially offset by higher royalties, profit sharing, and promotional and marketing funds the retailer received associated with the private label credit card.
Adjusted EBITDA was $16.4 vs. $28.4 million a year ago and the consensus mark of $13.0 million.
Torrid (CURV) ended the quarter with 630 stores after opening six Torrid stores and six Curv stores in the fourth quarter to more than offset the closure of two Torrid stores.
Looking ahead, Torrid (CURV) forecasts first-quarter revenue of $305 million to $328 million versus consensus of $328.3 million.
CEO Perspective: “We are pleased with the progress of our inventory and product quality, and we are beginning to see our gross margin rates stabilize. Looking ahead, I believe we have the right strategies and priorities to deliver for the long-term.” term”. financial goals and drive shareholder value.
Torrid Holdings (CURV) shares rose 5.90% in post-market trading in light volume.
