Alex Stratton's questions to Torrid Holdings Inc (CURV) leadership • Q1 2025
Question
Alex Stratton of Morgan Stanley sought clarification on the second-quarter guidance, which implies a sales deceleration, and asked about quarter-to-date business trends.
Answer
CFO Paula Dempsey attributed the Q2 sales outlook to the strategic decision to pause the lower-margin shoe business, which is heavily sourced from China. CEO Lisa Harper quantified this annual impact at $40-$45 million. Regarding current trends, Harper described consumer behavior as 'choppy' with customers buying closer to need, but noted continued strength in the digital channel.