Torrid closing up to 180 stores; net sales drop in Q1

Total sales for the first quarter were $853 million, declining 6.6% as compared to the prior year. Comparable store sales decreased 4.9%, as declines in non-book categories outpaced improved book trends during the quarter. The Company also experienced lower online and NOOK® sales during the quarter, which were impacted by the prior year eBook settlement and lower promotional activity. The consolidated first quarter net loss improved to $10.8 million, or $0.15 per share, compared to a loss of $14.4 million, or $0.20 per share, in the prior year. The consolidated first quarter operating loss of $15.2 million improved $6.2 million versus the prior year. Retail incurred an operating loss of $12.5 million, while NOOK incurred an operating loss of $2.7 million. Click Read More below for additional detail.

For the Third Quarter of Fiscal 2020 *Net sales decreased 7.8% to $1.6 billion compared to $1.7 billion in the third quarter of fiscal 2019 due to the impact of COVID-19. *Comparable sales (sales for stores open at least 14 months, including stores temporarily closed due to COVID-19, and e-commerce sales) decreased 8.9% compared to an increase of 3.2% in the third quarter of fiscal 2019. In the third quarter of fiscal 2020, transactions declined 15.4% and average ticket increased 7.6%. *Gross profit decreased 12.5% to $545.5 million compared to $623.4 million in the third quarter of fiscal 2019. *Tax rate increased to 25.1% compared to 23.1% in the third quarter of fiscal 2019. The higher effective tax rate is primarily due to less investment tax credits received. *Net income was $74.8 million compared to $129.7 million in the third quarter of fiscal 2019. Adjusted net income was $92.5 million compared to $128.6 million in the third quarter of fiscal 2019. For the First Nine Months of Fiscal 2020 *Net sales decreased 22.4% to $4.0 billion compared to $5.1 billion in first nine months of fiscal 2019 due to the impact of COVID-19.*Comparable sales decreased 23.8% compared to an increase of 5.4% in the first nine months of fiscal 2019. During the first nine months of fiscal 2020, transactions declined 30.1% and average ticket increased 9.0%. *Gross profit decreased to $1.2 billion compared to $1.9 billion in the first nine months of fiscal 2019. *Net income was $4.3 million compared to $483.2 million in the first nine months of fiscal 2019.

A successful digital-first brand from Hearst that has seen immeasurable growth with not only its website, but its printed bookazines and cookbooks, Delish.com is launching a quarterly print magazine. Delish in print will be sold at the newsstands, but will also be an integral part of the subscription model the brand has in place for its online footprint. An all-access subscription of $20 annually will not only get you everything online, but also the 96 page (plus covers) printed magazine as part of the memebership. Dan Fuchs, formerly of HGTV magazine and O, The Oprah Magazine, is the VP/Chief Revenue Officer of the new quarterly print publication. I spoke with Dan recently and we talked about this exciting new venture into the world of print for a digital-only entity. Dan said it’s an exhilarating time for a brand that has been successful online and in the world of print, with its special bookazines and cookbooks, to have a quarterly magazine coming out in print. Opportunities and more growth will surely follow. And with Editorial Director, Joanna Saltz, as his partner, Dan is looking forward to the future of Delish in all its exciting extensions.