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, announced today that Tim
Martin has been appointed to the role of Chief Operating Officer
and Chief Financial Officer effective September 12, 2022. In
addition, Hyon Park has been named Chief Technology Officer.
Lisa Harper, Chief Executive Officer, stated, “As we continue to
grow and scale our business, we are building a world-class
leadership team to support our continued sustainable and profitable
growth. I am very excited to welcome Tim who is a seasoned leader
known for his analytical acumen, strategic orientation, and proven
ability to drive results. His expertise will be invaluable to our
operations, and he will be a valued strategic partner to me and the
entire leadership team. I also want to welcome Hyon Park who will
be joining us as our Chief Technology Officer. Hyon will be pivotal
in helping build more robust technology and digital
capabilities.”
Mr. Martin comes to Torrid as an accomplished financial and
operational leader. He most recently served as Executive Vice
President and Chief Financial Officer of Guitar Center, where he
was responsible for accounting and finance, real estate, sourcing,
distribution and logistics. He brings more than 25 years of
experience at multiple consumer-facing companies including Lands’
End, Gap, Disney, Coldwater Creek and Amgen. In his new role, Tim
will lead all aspects of finance and operations including
Information Technology, store operations, customer service, real
estate, logistics, distribution and supply chain.
Mr. Martin will replace Tanner MacDiarmid who has served as
Interim CFO. Mr. MacDiarmid will continue to serve the Company on a
consulting basis.
Mr. Park joins as Chief Technology Officer from Belk, Inc. where
he served as Executive Vice President, Chief Information Officer.
Mr. Park brings 25 years of information technology and consulting
experience, including 20 years with direct-to-consumer retail
organizations such as Belk, Tailored Brands, and Gymboree. Mr. Park
will report to Mr. Martin and will lead the Information Technology
team including software and applications, infrastructure and
security, governance, and business intelligence.
Update on Second Quarter Fiscal 2022
Ms. Harper commented, “While we continue to make progress
driving strategic initiatives that will support sustainable,
profitable growth long term, we are reducing our sales and EBITDA
guidance for the second quarter as we continue to navigate through
the current macro environment. Although our web traffic trends have
been consistent, store traffic trends slowed in July and shipping
disruptions caused by upgrades to our distribution platform during
the quarter created unanticipated headwinds. The increased capacity
in our fulfillment center is now operational and customers are
receiving their orders as expected. Additionally, we were able to
clear our projected levels of excess inventory and expect to have
assortments in a balanced position by mid-September. Heading into
the back half of the year, we remain focused on prioritizing margin
through compelling new product, disciplined inventory management,
and cost control through effective resource allocation.”
For the second quarter of fiscal 2022, the Company now expects
(the “Updated Guidance”):
- Net sales to be between $335 million and $340 million versus
its previous guidance of between $350 million and $360
million.
- Adjusted EBITDA(1) to be between $49 million and $51 million
versus its previous guidance of between $53 million and $58
million.
The Company will provide an update to its fiscal 2022 outlook
when it reports second quarter fiscal 2022 results on Wednesday,
September 7, 2022.
The Updated Guidance does not represent a comprehensive
statement of the Company’s financial results or earnings for the
second quarter ended July 30, 2022, or any other period, and should
not be viewed as a substitute for unaudited condensed consolidated
financial statements prepared in accordance with U.S. Generally
Accepted Accounting Principles. The Company’s unaudited condensed
consolidated financial statements as of and for the quarter ended
July 30, 2022 are not yet available and the Company’s actual
results for such period are subject to the completion of
management’s final review and the Company’s other closing
procedures, or subsequent events, as well as the completion of the
Company’s review of its condensed consolidated financial
statements. During the course of the Company’s preparation of its
unaudited condensed consolidated financial statements and the notes
thereto, additional items that require adjustments to the Updated
Guidance may be identified. Investors should not place undue
reliance on the Updated Guidance, which may differ from the actual
results. In addition, the Updated Guidance is not necessarily
indicative of the results to be achieved in any future period. See
“Forward-Looking Statements” for additional information.
Notes
(1)
Adjusted EBITDA is a non-GAAP financial
measure. See “Non-GAAP Financial Measures” for additional
information on this non-GAAP financial measure. The Company does
not provide reconciliations of the forward-looking 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 measure of our operating
performance that is 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
measures in determining business value and, as such, use it
internally to report and analyze our results and we additionally
use Adjusted EBITDA 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 alternatives
to or substitutes for net income (loss), income (loss) from
operations, earnings (loss) per share or any other performance
measures determined in accordance with GAAP or as alternatives 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 second quarter of fiscal 2022
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 attract and retain employees that reflect our brand
image, embody our culture and possess the appropriate skill set;
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,
including as a result of the current conflict between Russia and
Ukraine.
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, including our Annual
Report on Form 10-K filed on March 30, 2022, 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/20220803005940/en/
Investors ICR, Inc. Jean Fontana (646) 277-1214
IR@torrid.com
Media Joele Frank, Wilkinson Brimmer Katcher Michael
Freitag / Arielle Rothstein / Lyle Weston (212) 355-4449
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