Company Summary - Torrid Holdings Inc.

Overview
Torrid Holdings Inc. is a North American direct-to-consumer retail brand that specializes in stylish apparel, intimates, and accessories designed specifically for curvy women. The company focuses on sizes 10 to 30 and offers fashionable, comfortable, and affordable products. Their product range includes tops, bottoms, denim, dresses, intimates, activewear, footwear, and accessories. All products are exclusive to Torrid, with a dedicated design process centered on perfect fit, quality, and trend relevance.

Business Approach & Strategy

• Uses a proprietary design methodology focusing on real woman fitting on actual models, not mannequins.
• Employs continuous customer feedback and data-driven design updates, including sizing refinements.
• Introduces approximately 16 new merchandise lines annually, balancing core year-round essentials ("Basics") with trend-driven "Core" updates tailored to current trends.
• Target demographics are youthful women aged 30-44, with some under 40, mainly with above-average household incomes.
• Leverages a three-tier loyalty program (Torrid Rewards) with members accruing points for purchases and spending $500+ or $1,000+ annually for higher tiers.
• Also offers a proprietary credit card program for loyalty and data collection.

Operational Channels & Infrastructure

• Operates 634 stores across 50 U.S. states, Puerto Rico, and Canada (as of February 1, 2025).
• Store sizes average approximately 3,100 sq. ft., primarily located in malls, lifestyle centers, outlet locations, and lifestyle centers.
• Stores support an immersive shopping experience with fitting rooms and community events, which help drive in-store traffic and brand engagement.
• The e-Commerce platform is a core element, providing seamless, personalized shopping via website and mobile app.
• Business is supported by a 750,000 sq. ft. automated distribution center in Ohio, capable of handling online and in-store fulfillment, including BOPIS and ship-from-store options.

Employees & Workforce

• Total employees: approximately 7,290 (as of February 1, 2025)
  • 490 at headquarters in City of Industry, California
  • Around 7,100 in stores and distribution center
• Employee mix: full-time and part-time, with a focus on associates delivering customer service and brand representation.
• Employee culture emphasizes diversity, inclusion, training, and community engagement through the Torrid Foundation.
• No employees are unionized or party to collective bargaining agreements.

Financials (Fiscal Year Ended February 1, 2025)

• Net sales: $1.1037 billion (decreased 4.2% from prior year)
• Net income: $16.3 million (up from $11.6 million in FY 2023)
• Active customers: 3.656 million (slightly decreased from 3.761 million in FY 2024)
• Net sales per active customer: $302 (down from $306 in FY 2024)
• Number of stores: 634 (decreased from 655 in FY 2023)
• Adjusted EBITDA: $109.1 million (slightly increased from $106.2 million in FY 2023)

Key Points

• The company heavily invests in data analytics, marketing, and enhancing a customer-centric omni-channel experience.
• Focused on maintaining and building loyalty through programs and personalized marketing.
• Sources the majority of products internationally, primarily from Asia, with ongoing efforts to diversify supply chains and reduce reliance on China.
• Has substantial lease obligations with a flexible store lease portfolio, including early termination options based on performance.
• Maintains a disciplined financial strategy with no dividends paid and a share repurchase program with approximately $44.9 million remaining under the current authorization.