Plus-size womenswear brand Torrid has reported an 86.8 percent increase in net profit in the first quarter of the year.
In the three months to April 30, the company made a net income of 24.1 million dollars, up from 12.9 million dollars a year ago.
Meanwhile, its adjusted EBITDA was 51.8 million dollars, down from 75.7 million dollars.
The brand, which specialises in sizes from 10 to 30, reported a slight 1 percent year-on-year increase in net sales to 328.4 million dollars. Meanwhile, comparable sales were down 2 percent compared to a 108 percent increase in the first quarter of last year.
The company said net sales were negatively impacted by shifts in event and shipment timing.
CEO Lisa Harper told investors: “We exceeded our sales and EBITDA guidance in the first quarter while lapping last year’s stimulus and managing gross margin compression created by supply chain challenges and inflationary pricing pressures.”
Looking ahead, the company expects full-year net sales of between 1.3 billion dollars and 1.365 billion dollars. It expects adjusted EBITDA of between 195 million dollars and 220 million dollars.
Harper continued: “As we look forward, our top priority is to continue to drive sustainable and profitable growth for the business.
“Our areas of focus will be on enhancing promotional and marketing strategies to better balance sales growth and margin, advancing our growth strategies, and ensuring that resources are invested appropriately to achieve our long-term goals.”