Torrid Holdings (NYSE:CURV), a leading direct-to-consumer apparel brand in North America catering to women sizes 10 to 30, has announced its financial results for the second quarter ending August 3, 2024.
Net sales for the quarter declined 1.6%, totaling $284.6 million compared to $289.1 million in the same period last year.
Comparable sales also dropped by 0.8%, with regular-price comparable sales increasing by 6.4%.
Despite the decline in sales, Torrid saw a notable improvement in its gross profit margin, which rose to 38.7% from 35.5% last year.
This 323-basis-point improvement was attributed to lower product costs due to strategic vendor pricing renegotiations and an increase in sales of full-priced items.
The company's net income grew to $8.3 million, or $0.08 per share, up from $6.6 million, or $0.06 per share, in the same quarter of 2023.
Adjusted EBITDA also increased to $34.6 million, representing 12.2% of net sales.
Meanwhile, Torrid continued to optimize its store network, opening five new locations and closing six, bringing its total store count to 657.
Additionally, the company reported a 19% decrease in inventory compared to the previous year's second quarter.