Torrid on fire in Q2; to open about 25 stores annually
Torrid Holdings Inc. reported a strong second quarter, a period that included the successful completion of its IPO.
The women’s apparel and intimates retailer for sizes 10 to 30 posted net income of $38.8 million, or $0.35 per share, for the quarter ended July 31, compared to $16.8 million, or $0.15 per share, in the year-ago period. Adjusted earnings were $86.5 million, compared to $34.2 million last year and to $39.7 million in the second quarter of 2019.
Net sales rose 34% to $332.9 million, compared to $249.2 million in the second quarter of 2020, fueled by continued growth in e-commerce and improvement in-store productivity trends. Net sales were up 29% from the second quarter of 2019. Comparable sales increased 30% from last year and 26% compared to 2019.
On its earnings call, Torrid, which currently operates more than 600 stores, reiterated its plans to add about 25 stores annually going forward, mostly away from malls,
[Read More: Exclusive: Torrid CEO sees plenty of room for growth]
“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,” said Torrid CEO Liz Munoz. “At Torrid, we aim to be the best direct-to-consumer apparel and intimates brand for women sizes 10 to 30, and we are uniquely positioned to serve this customer in a way she has never before experienced. Looking ahead, we see meaningful opportunity to deliver profitable sustainable long-term growth as we continue to drive our Curve [lingerie] business, further deepen customer engagement and expand brand awareness across channels.”
Torrid is facing increased competition as more retailers expand their plus-size offerings. Most recently, Gap Inc.’s Old Navy division launched a major initiative in body inclusivity with plans to offer every one of its women’s styles, in every size, with no price difference. Also, all women’s styles will be merchandised together, with no special sections for extended sizes.
“There are plenty of big girls to go around that are wildly underserved, you know, close to 90 million," Munoz said on the call. "So I personally welcome other people coming into this space, I think it excites the customer about her possibilities."
For its third quarter of fiscal 2021, Torrid net sales of between $305 million and $315 million.
“The strategies we have in place are driving strong growth in new customers as well as sales per customer,” said CFO George Wehlitz. “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.”