Torrid Holdings Inc., the apparel and intimates brand for women sizes 10 to 30, posted a strong second quarter marked by several key performance metrics that exceeded those during the comparable 2020 and 2019 periods.
Net income for the quarter ended July 31 was $38.8 million, or $0.35 per share, compared to $16.8 million, or $0.15 per share, in Q2 last year.
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Adjusted earnings before interest, depreciation, taxes and amortization grew by 153 percent to $86.5 million, compared to $34.2 million in Q2 last year, and increased 118 percent from $39.7 million in Q2 2019.
Net sales increased 34 percent to $332.9 million, compared to $249.2 million in the second quarter of 2020 and increased 29 percent from $257.4 million in the second quarter of 2019. According to the company, the sales increase was driven by continued growth in e-commerce and improvement in store productivity trends. Comparable sales increased 30 percent from last year.
“We delivered strong financial results in the second quarter, a period that included the successful completion of our IPO,” Liz Muñoz, chief executive officer, said Wednesday in a statement.
Torrid went public last July under the ticker symbol “Curv,” marking the first time the Sycamore Partners private equity firm has taken public one of the brands within its extensive portfolio of retail holdings, through an initial public offering. Along with the City of Industry, Calif.-based Torrid, Sycamore’s portfolio contains Azamara, Belk, CommerceHub, Express, Hot Topic, Loft, Ann Taylor, Lane Bryant, MGF Sourcing, NBG Home, Pure Fishing, Staples in the U.S. and Canada, Talbots and The Limited.
“We attribute the strength of our brand to our maniacal focus on both fit and on delivering an incredible customer experience that underscores our commitment to an underserved market,” Muñoz said.
Torrid’s gross profit increased 87 percent to $149.7 million, compared to $80 million in the second quarter of 2020 and 46 percent from $102.5 million in the second quarter of 2019. Gross profit margin was 45 percent last quarter, increasing 1,290 basis points from the same period last year and 520 basis points from the second quarter of 2019. The gross profit margin improvement was mostly due to less discounting, leveraging distribution expenses, store occupancy costs and store depreciation expenses on higher sales.
George Wehlitz, Torrid’s chief financial officer, stated, “We are extremely pleased with the underlying momentum in our business, which has continued into the third quarter. The strategies we have in place are driving strong growth in new customers as well as sales per customer. While we continue to benefit from the momentum in consumer demand, we are carefully monitoring the global supply chain challenges that are expected to persist into the back half of the year, and we are taking actions to mitigate the impact on our business.”
For the third quarter of fiscal 2021, the company expects, net sales of between $305 million and $315 million. Adjusted EBITDA is seen between $47 million and $52 million.
For the full year, the company expects net sales between $1.29 billion to $1.31 billion and adjusted EBITDA of between $248 million and $258 million.
