Torrid Q4 2024 Earnings Report
Key Takeaways
Torrid posted net sales of $275.56 million in Q4 2024, a 6.1% decrease year-over-year due to lower sales and the absence of last year's 53rd week. The company reported a net loss of $3.0 million and adjusted EBITDA of $16.7 million, exceeding guidance. Gross profit margin was 33.6%, down 90 basis points, primarily driven by lower sales volumes.
Q4 net sales declined by 6.1% to $275.56 million.
Net loss narrowed to $3.0 million compared to $4.1 million last year.
Gross profit margin was 33.6%, down from 34.5%.
Adjusted EBITDA reached $16.7 million, exceeding guidance.
Torrid
Torrid
Forward Guidance
For fiscal 2025, Torrid expects net sales between $1.08 billion and $1.10 billion and adjusted EBITDA between $100 million and $110 million, focusing on product enhancement, customer growth, and store optimization.
Positive Outlook
- Net sales expected between $1.08 billion and $1.10 billion for FY 2025.
- Adjusted EBITDA guidance between $100 million and $110 million.
- Plans to open between 4 and 8 new stores during the year.
- Continued investments in infrastructure and technology.
- Focus on enhancing core assortment and sub-brands.
Challenges Ahead
- Challenging macroeconomic environment expected to continue.
- Higher labor costs impacting margins.
- Volatility of tariff changes could influence inflation and demand.
- Continued decline in comparable sales noted in recent periods.
- Pressure from increased competition in the retail sector.