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12/10/2021

Torrid on hunt for a new CFO; reports mixed Q3, warns of rising costs

Marianne Wilson
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Torrid has started the search for a new CFO.

The chief financial officer of Torrid Holdings Inc. is stepping down.

The apparel brand for women sizes 10 to 30 said that George Wehlitz will retire at the end of the first quarter of fiscal 2022. He will remain in the role through the completion of Torrid’s fiscal 2021 annual financial filings and will serve as an advisor to the company following his retirement to ensure a smooth transition. The retailer is conducting a search Wehlitz’s successor and will consider internal and external candidates.

“I want to thank George for his valuable contributions to our company’s success, including playing an important role in our separation from Hot Topic and our transition to a public company,” said Liz Muñoz, CEO, Torrid.

Separately, Torrid reported a mixed third quarter and warned of rising costs and continuing supply chain problems. It comes after a strong second quarter during which the company completed its IPO.

The retailer a net loss of $58.9 million, or $0.54 per share, for the quarter ended Oct.30, compared to net income of $4.3 million, or $0.04 per share in the year-ago period, largely due to an IPO-related tax bump in the quarter.Adjusted earnings came in at $0.25 per share, above the $0.22 per share analysts had expected.

Sales rose 13% to $306.2 million year-over-year and were up 19% compared to the third quarter of 2019.  The retailer noted that while consumer demand was strong, supply chain disruptions limited product availability throughout the third quarter.  Same-store sales rose 14% from last year and 19% compared to 2019.

“We are very pleased with our third-quarter performance, further demonstrating the underlying strength in our brand and operating model,” said Wehlitz. “While consumer demand remains strong, we expect global supply chain challenges to persist into the fourth quarter. We are taking actions to mitigate the impact on our business, while maintaining our commitment to serve our customer.”

The company downgraded its outlook, citing global supply chain challenges that it expects to continue through the remainder of 2021, as well as higher raw material and labor costs, which are expected to be more pronounced heading into 2022.

[Read More: Exclusive: Torrid CEO sees plenty of room for growth]