Torrid has swung to a profit in the third quarter of the year but says it expects full-year sales and earnings to be lower than previously expected.
The plus-size womenswear brand made a net profit of 7.3 million dollars in the quarter, compared to a loss of 58.9 million dollars a year earlier.
That came despite net sales falling 5.3 percent in the quarter to 290 million dollars. On a comparable basis, sales were down 8 percent.
“For the third quarter, we delivered net sales and adjusted EBITDA that were within our expectations, all while navigating a challenging and promotional macroenvironment,” chief executive Lisa Harper told investors.
She said customers “responded favorably” to the company’s new merchandise offerings, including its Studio collection, but noted a slowdown in sales trends in October.
“This deceleration coincided with our comparable Torrid Cash event, which significantly impacted our overall performance,” she said.
Torrid now expects full-year net sales of between 1.244 billion dollars and 1.259 billion dollars, compared to previous guidance of between 1.26 billion dollars and 1.3 billion dollars.
It expects adjusted EBITDA in the range of 145 million dollars and 150 million dollars, compared to its previous estimate of between 160 million dollars and 175 million dollars.