North American retail chain Torrid Holdings Inc. reported net sales increase of 2 percent to 340.9 million dollars for the second quarter.
The company’s comparable sales increased 1 percent, following an increase of 30 percent in the second quarter of last year.
Commenting on the second quarter results, Lisa Harper, the company’s CEO, stated: “Despite a challenging macro environment that impacted demand industry-wide, we delivered net sales growth of 2 percent in Q2, on top of last year’s 34 percent growth.”
The company’s gross profit margin for the quarter was 34.9 percent compared to 45 percent in the second quarter of last year, approximately 600 basis points of decline. Net income was 22.7 million dollars or 22 cents per share compared to 38.8 million dollars or 35 cents per share in the second quarter of last year.
Adjusted EBITDA was 52.1 million dollars or 15.3 percent of net sales compared to 86.5 million dollars or 26 percent of net sales, in the second quarter of last year.
For the third quarter, the company expects net sales between 290 million dollars and 305 million dollars and adjusted EBITDA between 32 million dollars and 38 million dollars.
For the full year fiscal 2022 the company now expects net sales between 1.260 billion dollars and 1.300 billion dollars and adjusted EBITDA between 160 million dollars and 175 million dollars.
The company expects capital expenditures of between 30 and 33 million dollars reflecting infrastructure and technology investments as well as approximately 34 new stores for the year.