Wed, Jun 12, 8:24 PM (87 days ago)
Torrid Holdings Inc.'s Q1 FY2024 financial performance showed a decline in net sales by 4.8% to $279.8 million, attributed to decreased sales transactions and lower PLCC Funds, despite an increase in store count to 658. Gross profit improved by 4.3% to $115.4 million, driven by better merchandise margins and reduced costs. However, SG&A expenses rose by 7.4% to $76.5 million due to higher performance bonuses and administrative costs, partially offset by lower payroll costs. Marketing expenses decreased slightly by 4.5% to $12.8 million. The company reported net income of $12.2 million, up from $11.8 million, with an effective tax rate of 26.9%. Adjusted EBITDA remained stable at $38.2 million. Operating cash flow increased significantly to $27.6 million, while investing and financing activities used $7.0 million and $11.9 million, respectively. The company maintains a strong liquidity position with $116.1 million available under its ABL Facility. Future performance will depend on customer acquisition, economic conditions, and inventory management.