Plus-size womenswear brand Torrid has reported a 18.2 percent drop in net sales in the second quarter as the company navigates a “rebuild year” in a “challenging market”.
The US brand, which specialises in fashion for sizes 10 to 30, generated sales of 289.1 million dollars in the three months to July 29, compared to 353.5 million dollars in the prior-year period.
Its net profit narrowed to 6.6 million dollars from 22.7 million dollars a year earlier.
Gross profit margin shrunk to 35.5 percent from 37.2 percent, which it said was primarily driven by a decrease in private label credit card funds, deleverage of store occupancy costs as a result of lower net sales, and increases in store depreciation expense and merchandising payroll costs.
On a brighter note, those factors were partially offset by improved pricing strategies.
“Our second quarter results were in line with our guidance, reflecting our commitment to disciplined expense and inventory management even amidst a challenging market,” said CEO Lisa Harper in a statement.
For the full year, the company now expects net sales of between 1.08 billion dollars and 1.115 billion dollars, down from its previous guidance of between 1.095 billion dollars and 1.145 billion dollars.
It now expects an adjusted EBITDA of between 90 million dollars and 100 million dollars, compared to previous guidance of between 115 million dollars and 130 million dollars.
Harper continued: “We maintain that fiscal 2023 is a pivotal 'rebuild year' for us.
“Our laser focus is on balancing our merchandise assortment through exceptional value and product offerings, while expanding our customer base through a robust omnichannel strategy. We are confident that this will set the stage for sustainable long-term growth."