The City of Industry-based company’s net sales added up to $306 million, a 13% increase compared to the third quarter of last year. Net loss for the quarter was $59 million or 54 cents a share, which the company partially attributed to its IPO-related $111 million noncash charge. Analysts anticipated a net income of 22 cents a share on $303 million in revenue.
“Overall, we are pleased with our accomplishments this quarter and thus far for the year, particularly given the challenging operating environment,” Chief Executive Elizabeth Muñoz told analysts during an earnings call on Dec. 8. “We, along with the rest of the industry, are facing global supply chain headwinds. We have strong long-term vendor relationships and a diversified manufacturing base, and we are working closely with our partners to mitigate the current challenges. … While we expect supply chain headwinds to continue at least into the first half of 2022, we are successfully navigating the current environment and our underlying operating model remains strong.”
Muñoz said Torrid’s growth plan in the quarter included offering an expanded Curve bra collection and supporting it with additional marketing campaigns that “successfully drove sales” in the product category and contributed to both revenue growth and higher margin in the quarter.
The company also focused on deepening relationships with existing customers and increasing brand awareness by prioritizing “marketing and investments in digital initiatives, creative community events, key collaborations and website enhancements,” according to Muñoz.
She added that the company opened 11 stores during the quarter, bringing its total store count to 619 in the United States, Canada and Puerto Rico.
“The majority of our openings were in outlet or off-mall locations,” Muñoz said.
Torrid also said Chief Financial Officer George Wehlitz will retire at the end of first quarter next year and that the search for his replacement is underway.
“(Elizabeth Muñoz) and I have built an incredible relationship during our decade of working together, and this has been a tremendous experience and journey for me,” Wehlitz said during the earnings call.
The company, citing the potential for supply chain issues to continue, narrowed its full-year revenue guidance to a range between $1.29 billion and $1.3 billion.
