Torrid Holdings Inc ARS, filed Apr 26, 2023
Torrid Holdings Inc. (CURV)
ARS
2023-04-26
For: 2023-01-28
View Original
Added on
October 18, 2026
2022 Annual Report
Dear Torrid Stockholders, We have navigated a year of retail challenges as consumers pulled back on discretionary spending and retailers experienced elevated inventory levels, which resulted in a higher promotional environment in 2022. In the face of this challenge, our team has accomplished a great deal in a short time. We have made changes throughout the organization, including adding new leadership in many parts of the Company. I believe that the changes we’ve made are essential to position us to generate profitable long-term growth. In 2022, we delivered an Adjusted EBITDA1 of $152.4 million, or 11.8% of net sales, despite being promotional to clear inventory, which demonstrates the strength of the Torrid brand and our ability to drive profitability. Our total customer base increased 2% to 3.9 million customers and our loyalty program grew to 3.7 million customers in 2022 and accounted for 95% of total sales. Our customers love the way our merchandise fits, as evidenced by our industry-leading return rate of just 10%, and we remain committed to delivering an assortment that is anchored in a compelling fit. Our primary focus for 2022 was on reigniting sustainable long-term growth. We brought on Tim Martin, our Chief Operating Officer and Chief Financial Officer; Hyon Park, Chief Technology Officer; Bridgett Zeterberg, Chief Human Resources Officer and Chief Legal Officer; we promoted Vivian Alhorn to Chief Marketing Officer; and we brought back Mark Mizicko as our Chief Commercial Officer. These new leaders have a wealth of experience from public and private retail as well as consumer-facing companies, and will be instrumental in bringing our teams into alignment to execute our strategic initiatives. We also invested in new technology across the business that will enable us to provide customers with a more seamless experience. In the distribution center, we put in place new technology that has increased our capacity and allows us to deliver product to our customer faster than ever before. 1 Please refer to " Management's Discussion and Analysis of Financial Condition and Results of Operations" of this 2022 Annual Report for further discussion regarding Adjusted EBITDA and a reconciliation of net income (loss) to Adjusted EBITDA.
We know that new product consistently drives customer demand. We delivered new collections to her this year, with the successful relaunch of our Studio collection, the launch of our Festi collection, another collaboration with Betsey Johnson, and a refined focus on delivering more colors and fashion forward pieces that drove frequency and demand from our loyal customer base. Finally, we focused on expanding our customer base through the reengagement of inactive customers and the acquisition of new customers. We shifted our marketing efforts toward customer retention, bringing back lapsed customers, and reaffirmed our commitment to acquire new customers through our store channel. This year, these efforts allowed us to increase our active customer base. Overall, 2022 was a year of new insights, transformation, and laying the foundation for the continued success and expansion of the brand. We believe that the changes we made over the past year were crucial for our future expansion. As we look ahead to 2023, we will continue to expand our store footprint to drive customer file growth, deliver exciting merchandise to meet all of her closet’s needs, and strengthen our customer relationships.2 We recognize that customer loyalty is contingent on our ability to provide her with new and innovative merchandise that increases her purchase frequency. We intend to launch a steady stream of new collections across multiple categories in 2023 to pique her interest and increase her brand loyalty. We will continue to build on the positive feedback and customer interest generated by the introduction of our new products throughout the year. While there is much discussion in the retail industry about the macro environment ahead, we will maintain a laser-like focus on what we can control. We believe that the product and operational enhancements we’ve made will position us for success and allow us to focus on key areas that we know will drive the business, such as enhancing the customer experience, fostering productive customer file growth, and delivering exceptional products. I am thrilled to see our team continue to provide our customers with world-class fit and products that are truly life-changing, as well as an unmatched in-store customer experience. Sincerely, Lisa Harper, Chief Executive Officer 2 Please refer to “Forward-Looking Statements and Risk Factor Summary” and “Part I—Item 1A. Risk Factors” of this 2022 Annual Report for a description of the various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied by our forward-looking statements in this 2022 Annual Report.
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EXECUTIVE MANAGEMENT* Lisa Harper CHIEF EXECUTIVE OFFICER Tim Martin CHIEF OPERATING OFFICER and CHIEF FINANCIAL OFFICER Vivian Alhorn CHIEF MARKETING OFFICER Mark Mizicko CHIEF COMMERCIAL OFFICER Elizabeth Muñoz CHIEF CREATIVE OFFICER Hyon Park CHIEF TECHNOLOGY OFFICER Bridgett Zeterberg CHIEF HUMAN RESOURCES OFFICER and CHIEF LEGAL OFFICER Executive Management & Board of Directors BOARD OF DIRECTORS* Stefan L. Kaluzny CHAIRPERSON OF THE BOARD Lisa Harper CHIEF EXECUTIVE OFFICER and DIRECTOR Theo Killion LEAD INDEPENDENT DIRECTOR Dary Kopelioff DIRECTOR Valeria Rico Nikolov DIRECTOR Michael Shaffer DIRECTOR * Please see our investor relations website (https://investors.torrid.com) under “Governance” for bios of our executive management and board of directors.
2022 Annual Report