Torrid Holdings Inc. (“Torrid” or the “Company”) (NYSE: CURV), a
direct-to-consumer apparel, intimates, and accessories brand in
North America for women sizes 10 to 30, today announced its updated
outlook for the fourth quarter and fiscal year ending January 29,
2022.
Liz Muñoz, Chief Executive Officer, stated, “We had a strong
start to our fourth quarter, however, the spread of the omicron
variant negatively impacted performance largely due to labor
challenges at both our distribution center and a portion of our
stores. While we are not a business heavily dependent on holiday
sales, our Torrid cash event in January saw a negative impact from
these factors. As a result, we are revising our net sales and
adjusted EBITDA to below our initial guidance.”
“Overall, we remain confident in the strength of our business
model and the power of our brand, as the industry challenges we are
currently facing are largely transitory and we are taking steps to
mitigate the impacts. Looking ahead, we remain excited about our
unique ability to serve the large and growing plus-size market into
2022 and beyond,” concluded Ms. Muñoz.
Outlook for the Fourth Quarter and
Fiscal Year
For the fourth quarter ended January 29, 2022, the Company now
expects:
- Net sales in the range of $300 million to $305 million,
compared to its prior guidance range of $325 million to $335
million.
- Adjusted EBITDA1 in the range of $23 million to $25
million, compared to its prior guidance range of $35 million to $40
million.
For the fiscal year ended January 29, 2022, the Company now
expects:
- Net sales in the range of $1.265 billion to $1.270
billion, compared to its prior guidance range of $1.29 billion to
$1.30 billion.
- Adjusted EBITDA1 in the range of $240 million to $242
million, compared to its prior guidance range of $252 million to
$257 million.
Chief Executive Officer, Liz Muñoz, and Chief Financial Officer,
George Wehlitz, will be participating in the 24th Annual ICR
Conference on Tuesday, January 11, 2022, with a virtual fireside
chat at 2:00 pm Eastern Time. The presentation will be webcast live
over the internet and can be accessed at investors.torrid.com. An
online archive will be available on that site following the
fireside chat.
Please refer to the section below entitled “Non-GAAP Financial
Measures.”
Notes
(1)
Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP
Financial Measures” for additional information on non-GAAP
financial measures and a reconciliation to the most comparable GAAP
measures. The Company does not provide reconciliations of the
forward-looking non-GAAP measure of Adjusted EBITDA to the most
directly comparable forward-looking GAAP measure because the timing
and amount of excluded items are unreasonably difficult to fully
and accurately estimate. For the same reasons, the Company is
unable to address the probable significance of the unavailable
information, which could be material to future results.
About TORRID
TORRID is a direct-to-consumer brand of apparel, intimates and
accessories in North America targeting the 25- to 40-year old woman
who is curvy and wears sizes 10 to 30. TORRID is focused on fit and
offers high quality products across a broad assortment that
includes tops, bottoms, denim, dresses, intimates, activewear,
footwear and accessories.
Non-GAAP Financial Measures
In addition to results determined in accordance with accounting
principles generally accepted in the United States of America
(“GAAP”), management utilizes certain non-GAAP performance measures
such as Adjusted EBITDA for purposes of evaluating ongoing
operations and for internal planning and forecasting purposes. We
believe that these non-GAAP operating measures, when reviewed
collectively with our GAAP financial information, provide useful
supplemental information to investors in assessing our operating
performance.
Adjusted EBITDA is a supplemental measures of our operating
performance that are neither required by, nor presented in
accordance with, GAAP and our calculations thereof may not be
comparable to similarly titled measures reported by other
companies. Adjusted EBITDA represents GAAP net income (loss) plus
interest expense less interest income, net of other (income)
expense, plus provision for less (benefit from) income taxes,
depreciation and amortization (“EBITDA”), and share-based
compensation, non-cash deductions and charges, other expenses.
We believe Adjusted EBITDA facilitates operating performance
comparisons from period to period by isolating the effects of
certain items that vary from period to period without any
correlation to ongoing operating performance. We also use Adjusted
EBITDA as one of the primary methods for planning and forecasting
the overall expected performance of our business and for evaluating
on a quarterly and annual basis actual results against such
expectations.
Further, we recognize Adjusted EBITDA as a commonly used measure
in determining business value and, as such, use it internally to
report and analyze our results as well as a benchmark to determine
certain non-equity incentive payments made to executives
Adjusted EBITDA has limitations as an analytical tool. This
measure is not a measurement of our financial performance under
GAAP and should not be considered in isolation or as an alternative
to or substitute for net income (loss), income (loss) from
operations, earnings (loss) per share or any other performance
measures determined in accordance with GAAP or as an alternative to
cash flows from operating activities as a measure of our liquidity.
Our presentation of Adjusted EBITDA should not be construed as an
inference that our future results will be unaffected by unusual or
non-recurring items.
Forward-Looking Statements
Certain statements made in this release are “forward looking
statements” within the meaning of the “safe harbor” provisions of
the United States Private Securities Litigation Reform Act of 1995.
When used in this press release, the words “estimates,”
“projected,” “expects,” “anticipates,” “forecasts,” “plans,”
“intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,”
“propose” and variations of these words or similar expressions (or
the negative versions of such words or expressions) are intended to
identify forward-looking statements. For example, all statements we
make relating to our expected fourth quarter of fiscal 2021 and
full year fiscal 2021 performance are forward-looking statements.
These forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside Torrid’s control, that could
cause actual results or outcomes to differ materially from those
discussed in the forward-looking statements, including: successful
management of risks relating to the spread of COVID-19, including
any adverse impacts on our supply chain, workforce, facilities,
customer services and operations; changes in consumer spending and
general economic conditions; our ability to identify and respond to
new and changing product trends, customer preferences and other
related factors; our dependence on a strong brand image; damage to
our reputation arising from our use of social media, email and text
messages; increased competition from other brands and retailers;
our reliance on third parties to drive traffic to our website; the
success of the shopping centers in which our stores are located;
our ability to adapt to consumer shopping preferences and develop
and maintain a relevant and reliable omni-channel experience for
our customers; our dependence upon independent third parties for
the manufacture of all of our merchandise; availability constraints
and price volatility in the raw materials used to manufacture our
products; interruptions of the flow of our merchandise from
international manufacturers causing disruptions in our supply
chain; our sourcing a significant amount of our products from
China; shortages of inventory, delayed shipments to our e-Commerce
customers and harm to our reputation due to difficulties or
shut-down of our distribution facilities (including as a result of
COVID-19); our reliance upon independent third-party transportation
providers for substantially all of our product shipments; our
growth strategy; our leasing substantial amounts of space; our
failure to find store employees that reflect our brand image and
embody our culture; our reliance on third-parties for the provision
of certain services, including distribution and real estate
management; our dependence upon key executive management; our
reliance on information systems; system security risk issues that
could disrupt our internal operations or information technology
services; unauthorized disclosure of sensitive or confidential
information, whether through a breach of our computer system or
otherwise; our failure to comply with federal and state laws and
regulations and industry standards relating to privacy, data
protection, advertising and consumer protection; payment-related
risks that could increase our operating costs or subject us to
potential liability; claims made against us resulting in
litigation; changes in laws and regulations applicable to our
business; regulatory actions or recalls arising from issues with
product safety; our inability to protect our trademarks or other
intellectual property rights; our substantial indebtedness and
lease obligations; restrictions imposed by our indebtedness on our
current and future operations; changes in tax laws or regulations
or in our operations that may impact our effective tax rate; the
possibility that we may recognize impairments on long-lived assets;
our failure to maintain adequate internal controls; and the threat
of war, terrorism or other catastrophes that could negatively
impact our business.
We caution you that the important factors referenced above may
not contain all of the factors that are important to you. We derive
many of our forward-looking statements from our operating budgets
and forecasts, which are based upon many detailed assumptions.
While we believe that our assumptions are reasonable, we caution
that it is very difficult to predict the impact of known factors,
and, it is impossible for us to anticipate all factors that could
affect our actual results. Our statements should not be read to
indicate that we have conducted an exhaustive inquiry into, or
review of, all relevant information. The outcome of the events
described in any of our forward-looking statements are also subject
to risks, uncertainties and other factors described in our filings
with the Securities and Exchange Commission and elsewhere in this
communication. Moreover, we operate in a very competitive and
rapidly changing environment. New risks and uncertainties emerge
from time to time, and it is not possible for us to predict all
risks and uncertainties that could have an impact on the
forward-looking statements contained in this communication. The
forward-looking statements included in this press release are made
only as of the date hereof. We undertake no obligation to publicly
update or revise any forward-looking statement as a result of new
information, future events or otherwise. Our forward-looking
statements do not reflect the potential impact of any future
acquisitions, mergers, dispositions, joint ventures or
investments.
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version on businesswire.com: https://www.businesswire.com/news/home/20220110005387/en/
Investors ICR, Inc. Jean Fontana (646) 277-1214
IR@torrid.com
Media Joele Frank, Wilkinson Brimmer Katcher Leigh
Parrish / Lyle Weston (212) 355-4449
Torrid (NYSE:CURV)
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