Latest news with #Torrid
Miami Herald
2 days ago
- Business
- Miami Herald
Popular women's retailer closing 30% of its stores
For those of us old enough to have been shopping at malls for decades, it's been awfully strange to watch retailers that have been around forever closing their doors permanently. Perhaps one of the strangest to see go was Forever21, the fast-fashion brand once so popular that people stood in long lines at their retail stores to snap up too-cheap-to-believe deals. Don't miss the move: Subscribe to TheStreet's free daily newsletter But the company was eventually overtaken by similar low-cost online retailers like Shein and Temu, and eventually had to admit defeat after declaring Chapter 11 bankruptcy twice. It closed the last of its physical locations at the beginning of May, vanishing into the ether as if it never was. Related: Popular home retailer prepares to file Chapter 11 bankruptcy Macy's is another mall staple that's been around seemingly forever. But as fewer people flock to department stores to buy clothing and home goods in favor of buying them online or from discount stores like Home Goods, Macy's has been forced to downsize. The company announced in January that it would close 66 of its locations this year as part of a plan to close 150 "underproductive stores" through 2026. So, while it's still afloat, it's obvious that it's struggling in the current climate. You may also see specialty stores like Volcom, Billabong, and Quicksilver disappear from your local mall soon. Parent company Liberated Brands filed for Chapter 11 bankruptcy in February and plans to close 100 locations, although the brands themselves will live on thanks to a well-timed save from an unnamed buyer. Now, another mall staple has announced that it will make major cuts to its locations, which means it may vanish from your local mall soon. Torrid, the plus-sized women's clothing store founded in 2001, announced during its Q1 earnings call that it was planning to downsize its retail footprint due to customer preference for online shopping. 'Digital continues to be our customers' preferred channel, now approaching 70% of total demand," CEO Lisa Harper said during the call. "We're accelerating our transformation to a more digitally-led business, which includes optimizing our retail footprint." Related: Dollar Tree raises red flag about unexpected customer behavior Harper went on to say that Torrid will close up to 180 underperforming stores this year, allowing the business to "reduce fixed costs and reinvest in areas that drive long-term growth, including customer acquisition and omnichannel enhancements." The fashion retailer currently operates 632 locations. The majority of the store closures are likely to happen in Q4, according to William Blair analysts Dylan Carden and Anna Linscott in talks with RetailDive. The company also reported a drop in net sales of 5% year over year and a net income drop of more than half, which may also be motivating this move. Torrid, however, sounds prepared to be resilient. "Leveraging the deep connection with our existing customers, of which 95% are engaged in our loyalty program, combined with strategic and targeted acquisition and retention efforts, this digital transformation will position us for efficient and accelerated top and bottom-line growth," Harper said during the earnings call. Harper also said that Torrid plans to refresh 135 stores in Q3, which she called "low-capital investments with an expected fast return." Despite only making up a quarter of its sales, Harper told analysts that its brick-and-mortar locations still played an important role for the brand. Stores "serve as community hubs and immersive brand-building experiences, introducing customers to our brand and sub-brands, offering the dressing room experience, and acting as service centers for purchases made online or in stores," she said. "Most importantly, our passionate sales associates bring the brand to life, delivering personalized service that deepens customer connection and drives long-term loyalty." Related: Struggling car company swiftly shuts down half its stores The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Fibre2Fashion
2 days ago
- Business
- Fibre2Fashion
US' Torrid reports weaker Q1, eyes digital-led expansion
Torrid Holdings Inc, a North American D2C women's apparel brand, has reported a 4.9 per cent year-on-year (YoY) decline in net sales to $266 million for the first quarter (Q1) of fiscal 2025 (FY25) ended May 3. Torrid has reported a 4.9 per cent YoY decline in Q1 FY25 net sales to $266 million, with net income halved to $5.9 million. Gross margin fell to 38.1 per cent and operating cash flow turned negative at $18 million. The company plans up to 180 store closures and expects a $40â€'$45 million revenue hit from pausing China-sourced shoes, but no EBITDA impact. Comparable sales fell 3.5 per cent, and gross margin narrowed to 38.1 per cent due to lower sales and increased promotional activity. Net income dropped to $5.9 million from $12.2 million a year earlier. Adjusted EBITDA was $27.1 million, or 10.2 per cent of sales. The company ended the quarter with 632 stores after closing two locations. Operating cash flow turned negative at $18 million, down from a $27.6 million inflow last year. Liquidity stood at $141 million, including $23.7 million in cash, the company said in a release. 'Our sub-brand strategy is delivering positive results, exceeding expectations and helping us reach new and younger customers while driving higher margin sales. With the upcoming launches of Lovesick and Studio Luxe, we're doubling down on this momentum and expect sub-brands to represent nearly a third of our business by 2026,' stated Lisa Harper, chief executive officer. 'At the same time, digital continues to be our customer's preferred channel, now approaching 70 per cent of total demand. We're accelerating our transformation to a more digitally led business, which includes optimising our retail footprint,' Harper continued. For the second quarter (Q2) of FY25, Torrid projects sales between $250–$265 million and adjusted EBITDA of $18–$24 million. Full-year guidance includes net sales of $1.03–$1.055 billion and EBITDA of $95–$105 million. The retailer also announced plans to close up to 180 stores and pause its China-sourced shoe category, which is expected to result in a $40–$45 million revenue hit but no impact on EBITDA. 'We remain in a strong financial position and are executing with clarity and focus. I'm incredibly proud of our team's commitment to delivering innovative product, deepening customer connections, and building a more agile, resilient business for the future,' concluded Harper. Fibre2Fashion News Desk (HU)
Yahoo
3 days ago
- Business
- Yahoo
Torrid (NYSE:CURV) Misses Q1 Sales Targets
Women's plus-size apparel retailer Torrid Holdings (NYSE:CURV) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 4.9% year on year to $266 million. Next quarter's revenue guidance of $257.5 million underwhelmed, coming in 8% below analysts' estimates. Its GAAP profit of $0.06 per share was $0.02 above analysts' consensus estimates. Is now the time to buy Torrid? Find out in our full research report. Revenue: $266 million vs analyst estimates of $270.2 million (4.9% year-on-year decline, 1.6% miss) EPS (GAAP): $0.06 vs analyst estimates of $0.05 ($0.02 beat) Adjusted EBITDA: $27.13 million vs analyst estimates of $27.15 million (10.2% margin, in line) The company dropped its revenue guidance for the full year to $1.04 billion at the midpoint from $1.09 billion, a 4.4% decrease EBITDA guidance for the full year is $100 million at the midpoint, below analyst estimates of $101.6 million Operating Margin: 6%, down from 9.3% in the same quarter last year Free Cash Flow was -$20.56 million, down from $20.62 million in the same quarter last year Locations: 632 at quarter end, down from 658 in the same quarter last year Same-Store Sales fell 3.5% year on year (-9% in the same quarter last year) Market Capitalization: $531 million Lisa Harper, Chief Executive Officer, stated, 'I'm proud of the strong progress we made this quarter across our strategic initiatives. We delivered first quarter results in line with expectations, with $266 million in net sales and $27.1 million in Adjusted EBITDA(1)—reflecting our continued focus on disciplined execution and profitability.' Promoting a message of body positivity and inclusiveness, Torrid Holdings (NYSE:CURV) is a plus-size women's apparel and accessories retailer. A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. With $1.09 billion in revenue over the past 12 months, Torrid is a small retailer, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with suppliers. As you can see below, Torrid grew its sales at a sluggish 1.8% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) as it didn't open many new stores. This quarter, Torrid missed Wall Street's estimates and reported a rather uninspiring 4.9% year-on-year revenue decline, generating $266 million of revenue. Company management is currently guiding for a 9.5% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a slight deceleration versus the last six years. This projection is underwhelming and implies its products will face some demand challenges. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. The number of stores a retailer operates is a critical driver of how quickly company-level sales can grow. Torrid operated 632 locations in the latest quarter, and over the last two years, has kept its store count flat while other consumer retail businesses have opted for growth. When a retailer keeps its store footprint steady, it usually means demand is stable and it's focusing on operational efficiency to increase profitability. The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales is an industry measure of whether revenue is growing at those existing stores and is driven by customer visits (often called traffic) and the average spending per customer (ticket). Torrid's demand has been shrinking over the last two years as its same-store sales have averaged 7% annual declines. This performance isn't ideal, and we'd be concerned if Torrid starts opening new stores to artificially boost revenue growth. In the latest quarter, Torrid's same-store sales fell by 3.5% year on year. This decrease was an improvement from its historical levels. It's always great to see a business's demand trends improve. We liked how Torrid beat analysts' EPS expectations this quarter. On the other hand, its revenue guidance for next quarter missed. Overall, this was a mixed quarter. The stock traded up 4.2% to $5.20 immediately after reporting. Big picture, is Torrid a buy here and now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Torrid Reports First Quarter 2025 Results
Delivered First Quarter Net Sales within guidance First Quarter Net Income of $5.9 million Reported First Quarter Adjusted EBITDA(1) in line with the upper end of guidance Updates Fiscal 2025 Guidance CITY OF INDUSTRY, Calif., June 05, 2025--(BUSINESS WIRE)--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, today announced its financial results for the quarter ended May 3, 2025. Lisa Harper, Chief Executive Officer, stated, "I'm proud of the strong progress we made this quarter across our strategic initiatives. We delivered first quarter results in line with expectations, with $266 million in net sales and $27.1 million in Adjusted EBITDA(1)—reflecting our continued focus on disciplined execution and profitability." "Our sub-brand strategy is delivering positive results, exceeding expectations and helping us reach new and younger customers while driving higher margin sales. With the upcoming launches of Lovesick and Studio Luxe, we're doubling down on this momentum and expect sub-brands to represent nearly a third of our business by 2026." Harper continued, "At the same time, digital continues to be our customer's preferred channel, now approaching 70% of total demand. We're accelerating our transformation to a more digitally-led business, which includes optimizing our retail footprint. We now plan to close up to 180 underperforming stores this year—allowing us to reduce fixed costs and reinvest in areas that drive long-term growth, including customer acquisition and omnichannel enhancements. Leveraging the deep connection with our existing customers, of which 95% are engaged in our loyalty program, combined with strategic and targeted acquisition and retention efforts, this digital transformation will position us for efficient and accelerated top and bottom-line growth." "We remain in a strong financial position and are executing with clarity and focus. I'm incredibly proud of our team's commitment to delivering innovative product, deepening customer connections, and building a more agile, resilient business for the future," concluded Harper. Financial Highlights for the First Quarter of Fiscal 2025 Net sales decreased 4.9% to $266.0 million compared to $279.8 million for the first quarter of last year. Comparable sales(2) decreased 3.5% in the first quarter. Gross profit margin was 38.1% compared to 41.3% in the first quarter of last year. This decrease was primarily driven by a decline in net sales partially due to strategic promotional activity, and corporate investments. Net income of $5.9 million, or $0.06 per share, compared to a net income of $12.2 million, or $0.12 per share, in the first quarter of last year. Adjusted EBITDA(1) was $27.1 million, or 10.2% of net sales, compared to $38.2 million, or 13.7% of net sales, in the first quarter of last year. In the first quarter, we closed 2 Torrid stores. The total store count at quarter end was 632 stores. First Quarter Fiscal 2025 Financial and Operating Metrics Three Months Ended May 3, 2025 May 4, 2024 Number of stores (as of end of period) 632 658 Comparable sales(A) (4 )% (9 )% Net income (in thousands) $ 5,940 $ 12,172 Adjusted EBITDA(B) (in thousands) $ 27,128 $ 38,227 (A) Comparable sales(2) for the first quarter of fiscal year 2024 compares sales for the 13-week period ended May 4, 2024 with sales for the 13-week period ended May 6, 2023. (B) Refer to "Non-GAAP Reconciliation" below for a reconciliation of net income to Adjusted EBITDA(1). Balance Sheet and Cash Flow Cash and cash equivalents at the end of the first quarter of fiscal 2025 totaled $23.7 million. Total liquidity at the end of the quarter, including available borrowing capacity under our revolving credit agreement, was $141.0 million. Net cash used in operating activities for the three-month period ended May 3, 2025 was $18.0 million, compared to net cash provided by operating activities of $27.6 million for the three-month period ended May 4, 2024. Outlook For the second quarter of fiscal 2025 the Company expects: Net sales between $250 million and $265 million. Adjusted EBITDA(1) between $18 million and $24 million. For the full year fiscal 2025 the Company expects: Net sales between $1.030 billion and $1.055 billion. Adjusted EBITDA(1) between $95 million and $105 million. Capital expenditures between $10 million and $15 million reflecting infrastructure and technology investment. Up to 180 store closures to better align our current demand and sales channels. A net tariff impact of $20 million, based on current rates; to be fully offset by discretionary cost reductions, store optimization, and project prioritization. A neutral EBITDA impact and revenue reduction of $40 million to $45 million in 2025 from a pause in China-sourced shoe category; exploring more profitable re-entry strategy. The above outlook is based on several assumptions, including, but not limited to, the macroeconomic challenges in the industry in fiscal 2025. The above outlook does not take into consideration the volatility of tariff changes or its impact on inflation or consumer demand. See "Forward-Looking Statements" for additional information. Conference Call Details A conference call to discuss the Company's fiscal 2025 first quarter results is scheduled for June 5, 2025, at 4:30 p.m. ET. Those who wish to participate in the call may do so by dialing (877) 407-9208 or (201) 493-6784 for international callers. The conference call will also be webcast live at For those unable to participate, a replay of the conference call will be available approximately three hours after the conclusion of the call until June 12, 2025. Notes (1) Adjusted EBITDA is a non-GAAP financial measure. See "Non-GAAP Financial Measures" and "Non-GAAP Reconciliation" for additional information on non-GAAP financial measures and the accompanying table for a reconciliation to the most comparable GAAP measure. The Company does not provide reconciliations of the forward-looking non-GAAP measures of 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. (2) Comparable sales for any given period are defined as the sales of Torrid's e-Commerce operations and stores that it has included in its comparable sales base during that period. The Company includes a store in its comparable sales base after it has been open for 15 full fiscal months. If a store is closed during a fiscal year, it is only included in the computation of comparable sales for the full fiscal months in which it was open. Partial fiscal months are excluded from the computation of comparable sales. We also determine when certain store remodels and relocations are reintegrated into our comparable sales base. Comparable sales for the first quarter of fiscal year 2024 compares sales for the 13-week period ended May 4, 2024 with sales for the 13-week period ended May 6, 2023. Partial fiscal months are excluded from the computation of comparable sales. We apply current year foreign currency exchange rates to both current year and prior year comparable sales to remove the impact of foreign currency fluctuation and achieve a consistent basis for comparison. Comparable sales allow us to evaluate how our unified commerce business is performing exclusive of the effects of non-comparable sales and new store openings. About Torrid TORRID is a direct-to-consumer brand in North America dedicated to offering a diverse assortment of stylish apparel, intimates, and accessories skillfully designed for the curvy woman. Specializing in sizes 10 to 30, our primary focus is on providing fashionable, comfortable, and affordable options that meet the unique needs of our customers. Our extensive collection features high quality merchandise, including tops, bottoms, denim, dresses, intimates, activewear, footwear, and accessories. Our products are exclusive to us, and each product is meticulously crafted to cater to the needs of the curvy woman, empowering her to love the way she looks and feels. Our collections are artfully curated to suit all aspects of our customers' lives, including casual weekends, work, dressy and special occasions. Understanding the importance of affordability, we aim to keep our prices reasonable without compromising on quality. This allows us to build a meaningful connection with our customers, distinguishing us from other brands that often overlook plus- and mid-size consumers. Our brand experience and product offerings establish us as a differentiated and reliable choice for plus- and mid-size customers, which we believe sets us apart in the market. We strive to be everything our customer needs in her closet, consistently delivering products that make her feel confident and stylish. 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 expense (income), plus provision for (benefit from) income taxes, depreciation and amortization ("EBITDA"), and share-based compensation, non-cash deductions and charges, and 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 measure in determining business value and, as such, use it internally to report and analyze our results and 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 an alternative to or substitute for net income (loss), income (loss) from operations, earnings (loss) per share or any other performance measures determined in accordance with GAAP or as an alternative 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 earnings release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this earnings release are forward-looking statements. Forward-looking statements reflect our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "will," "should," "can have," "likely" and other words and terms of similar meaning (including their negative counterparts or other various or comparable terminology). For example, all statements we make relating to our expected first quarter of fiscal 2025, our full year fiscal 2025 performance and our plans and objectives for future operations, growth or initiatives are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those that we expected, including: changes in consumer spending and general economic conditions; the interruption of the flow of merchandise from international manufacturers, including as a result of the imposition of additional duties, tariffs and other charges on imports and exports; the negative impact on interest expense as a result of high interest rates; inflationary pressures with respect to labor and raw materials and global supply chain constraints that could increase our expenses; the adverse impact of rulemaking changes implemented by the Consumer Financial Protection Bureau on our income streams, profitability and results of operations; 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; 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; 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 facility; our reliance upon independent third-party transportation providers for substantially all of our product shipments; our growth strategy; our failure to attract and retain employees that reflect our brand image, embody our culture and possess the appropriate skill set; damage to our reputation arising from our use of social media, email and text messages; our reliance on third parties for the provision of certain services, including real estate management; our dependence upon key members of our executive management team; 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, third-party computer systems we rely on, 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 of definite-lived assets; our failure to maintain adequate internal control over financial reporting; and the threat of war, terrorism or other catastrophes, including natural disasters, that could negatively impact our business. The outcome of the events described in any of our forward-looking statements are also subject to risks, uncertainties and other factors described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on April 1, 2025 and in our other filings with the SEC and public communications. You should evaluate all forward-looking statements made in this communication in the context of these risks and uncertainties. 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 effect of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. We caution you that the important factors referenced above may not include all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the outcomes or affect us or our operations in the way we expect. The forward-looking statements included in this earnings 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 except to the extent required by law. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments. Investors and others should note that we may announce material information to our investors using our investor relations website ( SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media, to communicate with our investors and the public about our company, our business and other issues. It is possible that the information that we post on social media could be deemed to be material information. We therefore encourage investors to visit these websites from time to time. The information contained on such websites and social media posts is not incorporated by reference into this filing. Further, our references to website URLs in this filing are intended to be inactive textual references only. TORRID HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (In thousands, except per share data) Three Months Ended May 3, 2025 May 4, 2024 Net sales $ 265,965 $ 279,771 Cost of goods sold 164,563 164,350 Gross profit 101,402 115,421 Selling, general and administrative expenses 70,016 76,466 Marketing expenses 15,359 12,812 Income from operations 16,027 26,143 Interest expense 8,161 9,377 Interest income, net of other (income) expense (706 ) 110 Income before provision for income taxes 8,572 16,656 Provision for income taxes 2,632 4,484 Net income $ 5,940 $ 12,172 Net earnings per share: Basic $ 0.06 $ 0.12 Diluted $ 0.06 $ 0.12 Weighted average number of shares: Basic 104,915 104,268 Diluted 106,041 105,247 Other comprehensive income (loss): Foreign currency translation adjustment 375 (89 ) Total other comprehensive income (loss) 375 (89 ) Comprehensive income $ 6,315 $ 12,083 TORRID HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share and per share data) May 3, 2025 February 1, 2025 Assets Current assets: Cash and cash equivalents $ 23,693 $ 48,523 Restricted cash 399 399 Inventory 149,570 148,493 Prepaid expenses and other current assets 26,905 24,507 Prepaid income taxes 1,824 4,244 Total current assets 202,391 226,166 Property and equipment, net 71,521 77,669 Operating lease right-of-use assets 132,672 140,651 Deposits and other noncurrent assets 19,774 18,935 Deferred tax assets 16,620 16,620 Intangible asset 8,400 8,400 Total assets $ 451,378 $ 488,441 Liabilities and Stockholders' Deficit Current liabilities: Accounts payable $ 62,146 $ 72,378 Accrued and other current liabilities 107,083 125,743 Operating lease liabilities 38,661 40,505 Current portion of term loan 16,144 16,144 Due to related parties 7,858 8,362 Income taxes payable 116 — Total current liabilities 232,008 263,132 Noncurrent operating lease liabilities 125,407 134,481 Noncurrent debt, net 268,373 272,409 Deferred compensation 3,630 3,913 Other noncurrent liabilities 5,781 5,595 Total liabilities 635,199 679,530 Commitments and contingencies Stockholders' Deficit: Preferred shares: $0.01 par value; 5,000,000 shares authorized; no shares issued and outstanding at May 3, 2025 and February 1, 2025 — — Common shares: $0.01 par value; 1,000,000,000 shares authorized; 105,000,414 and 104,859,266 shares issued and outstanding at May 3, 2025 and February 1, 2025, respectively 1,050 1,049 Additional paid-in capital 140,981 140,029 Accumulated deficit (325,329 ) (331,269 ) Accumulated other comprehensive loss (523 ) (898 ) Total stockholders' deficit (183,821 ) (191,089 ) Total liabilities and stockholders' deficit $ 451,378 $ 488,441 TORRID HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands) Three Months Ended May 3, 2025 May 4, 2024 OPERATING ACTIVITIES Net income $ 5,940 $ 12,172 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Write down of inventory 588 685 Operating right-of-use assets amortization 8,945 10,169 Depreciation and other amortization 9,774 9,639 Share-based compensation 1,469 1,658 Other (2,806 ) (590 ) Changes in operating assets and liabilities: Inventory (1,410 ) (3,431 ) Prepaid expenses and other current assets (2,398 ) (4,803 ) Prepaid income taxes 2,420 969 Deposits and other noncurrent assets (877 ) (1,176 ) Accounts payable (10,721 ) 12,911 Accrued and other current liabilities (18,354 ) 3,126 Operating lease liabilities (10,035 ) (15,840 ) Other noncurrent liabilities 121 (165 ) Deferred compensation (283 ) (215 ) Due to related parties (504 ) (810 ) Income taxes payable 116 3,325 Net cash (used in) provided by operating activities (18,015 ) 27,624 INVESTING ACTIVITIES Purchases of property and equipment (2,547 ) (7,008 ) Net cash used in investing activities (2,547 ) (7,008 ) FINANCING ACTIVITIES Proceeds from revolving credit facility 50,490 62,780 Principal payments on revolving credit facility (50,490 ) (70,050 ) Principal payments on term loan (4,375 ) (4,375 ) Proceeds from issuances under share-based compensation plans 27 86 Withholding tax payments related to vesting of restricted stock units and awards and exercise of non qualified stock options (326 ) (300 ) Net cash used in financing activities (4,674 ) (11,859 ) Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash 406 (27 ) (Decrease) increase in cash, cash equivalents and restricted cash (24,830 ) 8,730 Cash, cash equivalents and restricted cash at beginning of period 48,922 12,134 Cash, cash equivalents and restricted cash at end of period $ 24,092 $ 20,864 SUPPLEMENTAL INFORMATION Cash paid during the period for interest related to the revolving credit facility and term loan $ 7,763 $ 9,709 Cash paid during the period for income taxes $ 69 $ 201 SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES Property and equipment purchases included in accounts payable and accrued liabilities $ 1,521 $ 1,927 Non-GAAP Reconciliation The following table provides a reconciliation of Net income to Adjusted EBITDA for the periods presented (dollars in thousands): Three Months Ended May 3, 2025 May 4, 2024 Net income $ 5,940 $ 12,172 Interest expense 8,161 9,377 Interest income, net of other (income) expense (706 ) 110 Provision for income taxes 2,632 4,484 Depreciation and amortization(A) 9,394 9,259 Share-based compensation(B) 1,469 1,658 Noncash deductions and charges(C) 52 (58 ) Other expenses(D) 186 1,225 Adjusted EBITDA $ 27,128 $ 38,227 _________________________ (A) Depreciation and amortization excludes amortization of debt issuance costs and original issue discount that are reflected in interest expense. (B) During the three months ended May 3, 2025 and May 4, 2024, share-based compensation includes $0.2 million and $0.4 million, respectively, for awards that will be settled in cash as they are accounted for similar to awards settled in shares in accordance with ASC 718, Compensation—Stock Compensation. (C) Noncash deductions and charges includes noncash losses on property and equipment disposals and the net impact of noncash rent expense. (D) Other expenses include severance costs for certain key management positions, certain transaction and litigation fees, and the reimbursement of certain management expenses, primarily for travel, incurred by Sycamore on our behalf, which are not considered to be part of our core business. View source version on Contacts Investors Tom FilandroLyn WaltherIR@ Media Joele Frank, Wilkinson Brimmer KatcherMichael Freitag / Arielle Rothstein / Lyle WestonMedia@ Sign in to access your portfolio
Business Wire
3 days ago
- Business
- Business Wire
Torrid Reports First Quarter 2025 Results
CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)--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, today announced its financial results for the quarter ended May 3, 2025. Lisa Harper, Chief Executive Officer, stated, 'I'm proud of the strong progress we made this quarter across our strategic initiatives. We delivered first quarter results in line with expectations, with $266 million in net sales and $27.1 million in Adjusted EBITDA (1) —reflecting our continued focus on disciplined execution and profitability.' 'Our sub-brand strategy is delivering positive results, exceeding expectations and helping us reach new and younger customers while driving higher margin sales. With the upcoming launches of Lovesick and Studio Luxe, we're doubling down on this momentum and expect sub-brands to represent nearly a third of our business by 2026.' Harper continued, 'At the same time, digital continues to be our customer's preferred channel, now approaching 70% of total demand. We're accelerating our transformation to a more digitally-led business, which includes optimizing our retail footprint. We now plan to close up to 180 underperforming stores this year—allowing us to reduce fixed costs and reinvest in areas that drive long-term growth, including customer acquisition and omnichannel enhancements. Leveraging the deep connection with our existing customers, of which 95% are engaged in our loyalty program, combined with strategic and targeted acquisition and retention efforts, this digital transformation will position us for efficient and accelerated top and bottom-line growth.' 'We remain in a strong financial position and are executing with clarity and focus. I'm incredibly proud of our team's commitment to delivering innovative product, deepening customer connections, and building a more agile, resilient business for the future,' concluded Harper. Financial Highlights for the First Quarter of Fiscal 2025 Net sales decreased 4.9% to $266.0 million compared to $279.8 million for the first quarter of last year. Comparable sales (2) decreased 3.5% in the first quarter. Gross profit margin was 38.1% compared to 41.3% in the first quarter of last year. This decrease was primarily driven by a decline in net sales partially due to strategic promotional activity, and corporate investments. Net income of $5.9 million, or $0.06 per share, compared to a net income of $12.2 million, or $0.12 per share, in the first quarter of last year. Adjusted EBITDA (1) was $27.1 million, or 10.2% of net sales, compared to $38.2 million, or 13.7% of net sales, in the first quarter of last year. In the first quarter, we closed 2 Torrid stores. The total store count at quarter end was 632 stores. First Quarter Fiscal 2025 Financial and Operating Metrics May 3, 2025 May 4, 2024 Number of stores (as of end of period) 632 658 Comparable sales (A) (4 )% (9 )% Net income (in thousands) $ 5,940 $ 12,172 Adjusted EBITDA (B) (in thousands) $ 27,128 $ 38,227 (A) Comparable sales (2) for the first quarter of fiscal year 2024 compares sales for the 13-week period ended May 4, 2024 with sales for the 13-week period ended May 6, 2023. (B) Refer to 'Non-GAAP Reconciliation' below for a reconciliation of net income to Adjusted EBITDA (1). Expand Balance Sheet and Cash Flow Cash and cash equivalents at the end of the first quarter of fiscal 2025 totaled $23.7 million. Total liquidity at the end of the quarter, including available borrowing capacity under our revolving credit agreement, was $141.0 million. Net cash used in operating activities for the three-month period ended May 3, 2025 was $18.0 million, compared to net cash provided by operating activities of $27.6 million for the three-month period ended May 4, 2024. Outlook For the second quarter of fiscal 2025 the Company expects: Net sales between $250 million and $265 million. Adjusted EBITDA (1) between $18 million and $24 million. For the full year fiscal 2025 the Company expects: Net sales between $1.030 billion and $1.055 billion. Adjusted EBITDA (1) between $95 million and $105 million. Capital expenditures between $10 million and $15 million reflecting infrastructure and technology investment. Up to 180 store closures to better align our current demand and sales channels. A net tariff impact of $20 million, based on current rates; to be fully offset by discretionary cost reductions, store optimization, and project prioritization. A neutral EBITDA impact and revenue reduction of $40 million to $45 million in 2025 from a pause in China-sourced shoe category; exploring more profitable re-entry strategy. The above outlook is based on several assumptions, including, but not limited to, the macroeconomic challenges in the industry in fiscal 2025. The above outlook does not take into consideration the volatility of tariff changes or its impact on inflation or consumer demand. See 'Forward-Looking Statements' for additional information. Conference Call Details A conference call to discuss the Company's fiscal 2025 first quarter results is scheduled for June 5, 2025, at 4:30 p.m. ET. Those who wish to participate in the call may do so by dialing (877) 407-9208 or (201) 493-6784 for international callers. The conference call will also be webcast live at For those unable to participate, a replay of the conference call will be available approximately three hours after the conclusion of the call until June 12, 2025. Notes (1) Adjusted EBITDA is a non-GAAP financial measure. See 'Non-GAAP Financial Measures' and 'Non-GAAP Reconciliation' for additional information on non-GAAP financial measures and the accompanying table for a reconciliation to the most comparable GAAP measure. The Company does not provide reconciliations of the forward-looking non-GAAP measures of 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. (2) Comparable sales for any given period are defined as the sales of Torrid's e-Commerce operations and stores that it has included in its comparable sales base during that period. The Company includes a store in its comparable sales base after it has been open for 15 full fiscal months. If a store is closed during a fiscal year, it is only included in the computation of comparable sales for the full fiscal months in which it was open. Partial fiscal months are excluded from the computation of comparable sales. We also determine when certain store remodels and relocations are reintegrated into our comparable sales base. Comparable sales for the first quarter of fiscal year 2024 compares sales for the 13-week period ended May 4, 2024 with sales for the 13-week period ended May 6, 2023. Partial fiscal months are excluded from the computation of comparable sales. We apply current year foreign currency exchange rates to both current year and prior year comparable sales to remove the impact of foreign currency fluctuation and achieve a consistent basis for comparison. Comparable sales allow us to evaluate how our unified commerce business is performing exclusive of the effects of non-comparable sales and new store openings. Expand About Torrid TORRID is a direct-to-consumer brand in North America dedicated to offering a diverse assortment of stylish apparel, intimates, and accessories skillfully designed for the curvy woman. Specializing in sizes 10 to 30, our primary focus is on providing fashionable, comfortable, and affordable options that meet the unique needs of our customers. Our extensive collection features high quality merchandise, including tops, bottoms, denim, dresses, intimates, activewear, footwear, and accessories. Our products are exclusive to us, and each product is meticulously crafted to cater to the needs of the curvy woman, empowering her to love the way she looks and feels. Our collections are artfully curated to suit all aspects of our customers' lives, including casual weekends, work, dressy and special occasions. Understanding the importance of affordability, we aim to keep our prices reasonable without compromising on quality. This allows us to build a meaningful connection with our customers, distinguishing us from other brands that often overlook plus- and mid-size consumers. Our brand experience and product offerings establish us as a differentiated and reliable choice for plus- and mid-size customers, which we believe sets us apart in the market. We strive to be everything our customer needs in her closet, consistently delivering products that make her feel confident and stylish. 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 expense (income), plus provision for (benefit from) income taxes, depreciation and amortization ('EBITDA'), and share-based compensation, non-cash deductions and charges, and 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 measure in determining business value and, as such, use it internally to report and analyze our results and 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 an alternative to or substitute for net income (loss), income (loss) from operations, earnings (loss) per share or any other performance measures determined in accordance with GAAP or as an alternative 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 earnings release are 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended (the 'Securities Act') and Section 21E of the Securities Exchange Act of 1934, as amended (the 'Exchange Act'), and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this earnings release are forward-looking statements. Forward-looking statements reflect our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as 'anticipate,' 'estimate,' 'expect,' 'project,' 'plan,' 'intend,' 'believe,' 'may,' 'will,' 'should,' 'can have,' 'likely' and other words and terms of similar meaning (including their negative counterparts or other various or comparable terminology). For example, all statements we make relating to our expected first quarter of fiscal 2025, our full year fiscal 2025 performance and our plans and objectives for future operations, growth or initiatives are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those that we expected, including: changes in consumer spending and general economic conditions; the interruption of the flow of merchandise from international manufacturers, including as a result of the imposition of additional duties, tariffs and other charges on imports and exports; the negative impact on interest expense as a result of high interest rates; inflationary pressures with respect to labor and raw materials and global supply chain constraints that could increase our expenses; the adverse impact of rulemaking changes implemented by the Consumer Financial Protection Bureau on our income streams, profitability and results of operations; 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; 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; 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 facility; our reliance upon independent third-party transportation providers for substantially all of our product shipments; our growth strategy; our failure to attract and retain employees that reflect our brand image, embody our culture and possess the appropriate skill set; damage to our reputation arising from our use of social media, email and text messages; our reliance on third parties for the provision of certain services, including real estate management; our dependence upon key members of our executive management team; 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, third-party computer systems we rely on, 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 of definite-lived assets; our failure to maintain adequate internal control over financial reporting; and the threat of war, terrorism or other catastrophes, including natural disasters, that could negatively impact our business. The outcome of the events described in any of our forward-looking statements are also subject to risks, uncertainties and other factors described in the sections entitled 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ('SEC') on April 1, 2025 and in our other filings with the SEC and public communications. You should evaluate all forward-looking statements made in this communication in the context of these risks and uncertainties. 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 effect of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. We caution you that the important factors referenced above may not include all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the outcomes or affect us or our operations in the way we expect. The forward-looking statements included in this earnings 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 except to the extent required by law. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments. Investors and others should note that we may announce material information to our investors using our investor relations website ( SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media, to communicate with our investors and the public about our company, our business and other issues. It is possible that the information that we post on social media could be deemed to be material information. We therefore encourage investors to visit these websites from time to time. The information contained on such websites and social media posts is not incorporated by reference into this filing. Further, our references to website URLs in this filing are intended to be inactive textual references only. TORRID HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share and per share data) May 3, 2025 Assets Current assets: Cash and cash equivalents $ 23,693 $ 48,523 Restricted cash 399 399 Inventory 149,570 148,493 Prepaid expenses and other current assets 26,905 24,507 Prepaid income taxes 1,824 4,244 Total current assets 202,391 226,166 Property and equipment, net 71,521 77,669 Operating lease right-of-use assets 132,672 140,651 Deposits and other noncurrent assets 19,774 18,935 Deferred tax assets 16,620 16,620 Intangible asset 8,400 8,400 Total assets $ 451,378 $ 488,441 Liabilities and Stockholders' Deficit Current liabilities: Accounts payable $ 62,146 $ 72,378 Accrued and other current liabilities 107,083 125,743 Operating lease liabilities 38,661 40,505 Current portion of term loan 16,144 16,144 Due to related parties 7,858 8,362 Income taxes payable 116 — Total current liabilities 232,008 263,132 Noncurrent operating lease liabilities 125,407 134,481 Noncurrent debt, net 268,373 272,409 Deferred compensation 3,630 3,913 Other noncurrent liabilities 5,781 5,595 Total liabilities 635,199 679,530 Commitments and contingencies Stockholders' Deficit: Preferred shares: $0.01 par value; 5,000,000 shares authorized; no shares issued and outstanding at May 3, 2025 and February 1, 2025 — — Common shares: $0.01 par value; 1,000,000,000 shares authorized; 105,000,414 and 104,859,266 shares issued and outstanding at May 3, 2025 and February 1, 2025, respectively 1,050 1,049 Additional paid-in capital 140,981 140,029 Accumulated deficit (325,329 ) (331,269 ) Accumulated other comprehensive loss (523 ) (898 ) Total stockholders' deficit (183,821 ) (191,089 ) Total liabilities and stockholders' deficit $ 451,378 $ 488,441 Expand TORRID HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands) Three Months Ended May 3, 2025 May 4, 2024 OPERATING ACTIVITIES Net income $ 5,940 $ 12,172 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Write down of inventory 588 685 Operating right-of-use assets amortization 8,945 10,169 Depreciation and other amortization 9,774 9,639 Share-based compensation 1,469 1,658 Other (2,806 ) (590 ) Changes in operating assets and liabilities: Inventory (1,410 ) (3,431 ) Prepaid expenses and other current assets (2,398 ) (4,803 ) Prepaid income taxes 2,420 969 Deposits and other noncurrent assets (877 ) (1,176 ) Accounts payable (10,721 ) 12,911 Accrued and other current liabilities (18,354 ) 3,126 Operating lease liabilities (10,035 ) (15,840 ) Other noncurrent liabilities 121 (165 ) Deferred compensation (283 ) (215 ) Due to related parties (504 ) (810 ) Income taxes payable 116 3,325 Net cash (used in) provided by operating activities (18,015 ) 27,624 INVESTING ACTIVITIES Purchases of property and equipment (2,547 ) (7,008 ) Net cash used in investing activities (2,547 ) (7,008 ) FINANCING ACTIVITIES Proceeds from revolving credit facility 50,490 62,780 Principal payments on revolving credit facility (50,490 ) (70,050 ) Principal payments on term loan (4,375 ) (4,375 ) Proceeds from issuances under share-based compensation plans 27 86 Withholding tax payments related to vesting of restricted stock units and awards and exercise of non qualified stock options (326 ) (300 ) Net cash used in financing activities (4,674 ) (11,859 ) Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash 406 (27 ) (Decrease) increase in cash, cash equivalents and restricted cash (24,830 ) 8,730 Cash, cash equivalents and restricted cash at beginning of period 48,922 12,134 Cash, cash equivalents and restricted cash at end of period $ 24,092 $ 20,864 SUPPLEMENTAL INFORMATION Cash paid during the period for interest related to the revolving credit facility and term loan $ 7,763 $ 9,709 Cash paid during the period for income taxes $ 69 $ 201 Property and equipment purchases included in accounts payable and accrued liabilities $ 1,521 $ 1,927 Expand _________________________ (A) Depreciation and amortization excludes amortization of debt issuance costs and original issue discount that are reflected in interest expense. (B) During the three months ended May 3, 2025 and May 4, 2024, share-based compensation includes $0.2 million and $0.4 million, respectively, for awards that will be settled in cash as they are accounted for similar to awards settled in shares in accordance with ASC 718, Compensation—Stock Compensation. (C) Noncash deductions and charges includes noncash losses on property and equipment disposals and the net impact of noncash rent expense. (D) Other expenses include severance costs for certain key management positions, certain transaction and litigation fees, and the reimbursement of certain management expenses, primarily for travel, incurred by Sycamore on our behalf, which are not considered to be part of our core business. Expand
