Torrid’s first quarter net sales decreased 11.8 percent to 293.9 million dollars and comparable sales decreased 14 percent.
Gross profit margin was 37.7 percent compared to 39 percent in the first quarter of last year, a decline of 134 bps. The company’s net income decreased to 11.8 million dollars or 11 cents per share.
Adjusted EBITDA was 38.3 million dollars or 13 percent of net sales, compared to 51.8 million dollars or 15.5 percent of net sales, in the first quarter of last year.
Commenting on the financial performance, Lisa Harper, chief executive officer of Torrid, stated: “During the first quarter we carefully managed our expenses and inventory levels, which enabled us to deliver adjusted EBITDA in line with our guidance, despite challenging traffic trends.”
For the second quarter of fiscal 2023, the company expects net sales between 280 million dollars and 295 million dollars and adjusted EBITDA between 32 million dollars and 38 million dollars.
For the full year, the company expects net sales between 1,095 billion dollars and 1,145 billion dollars and adjusted EBITDA between 115 million dollars and 130 million dollars.
In the first quarter, the company opened five Torrid stores and closed six stores ending the period with 638 stores.