CITY OF INDUSTRY, Calif. - Torrid Holdings Inc. (NYSE: CURV), a leading apparel and accessories brand for women sizes 10 to 30, has reported a robust earnings beat for the first quarter of fiscal 2024, with adjusted earnings per share (EPS) of $0.12, surpassing the analyst consensus of $0.07. Despite a slight miss on revenue expectations, the company's stock price soared, closing up 9% as investors rallied around the earnings surprise.
For the first quarter, Torrid reported net sales of $279.8 million, a 4.8% decrease from the $293.9 million reported in the same quarter last year. This figure was just shy of the analyst consensus of $280.16 million. 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.
Torrid's CEO, Lisa Harper, commented on the results, "We are pleased with our start to fiscal 2024. In the first quarter, we delivered higher-than-expected adjusted EBITDA driven by strong gross margin expansion, while maintaining our focus on tightly controlling inventory levels. Our customers responded positively to our ongoing assortment changes, leading to improved traffic and sales throughout the quarter."
Looking ahead, Torrid provided guidance for the full year fiscal 2024, projecting net sales between $1.135 billion and $1.155 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.
The company's positive performance in the first quarter, especially the earnings beat, has set a confident tone for the fiscal year, despite the challenges posed by a decrease in comparable sales and the broader macroeconomic environment. Torrid's ability to navigate these challenges while still delivering on profitability has clearly resonated with investors, as evidenced by the significant uptick in the stock price following the earnings announcement.
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