Torrid Holdings Inc. (NYSE:CURV) Q4 2022 Earnings Call Transcript

Lisa Harper: So, we look at the total customer file and one of the big successes we had last year was customers who have lapsed bringing them back to the brand. And so that was a growth area for us in the customer on scenario. We’ve also just – this didn’t really apply as much to last year, but some of the nice things that we’re seeing early this year, as we’ve just switched to a new digital marketing agency with a very clear strategic direction to build customer file throughout all categories, reactivation new customers and then focus on retention and frequency as well. And we’re feeling like we’re on the right path in terms of doing that. But to your point in reinforcing what we said in the call, what has really worked for this business over many years is the customer experience that she has in the dressing room in the stores as a new customer, her conversion into an omni customer and the incredible lifetime value – and dedication that customer has with very high retention rates.

And that is fundamentally the underlying philosophy of this business of this organization. Definitely omni, the most effective, most productive opportunity for us to acquire new customers, retain them and build frequency is through the store experience. Our – all of our data on the customer experience in the stores is the highest I’ve ever seen in the retail environment. And that opportunity to get her in the dressing room and double the regular store conversion rate by getting her in there. And then the long focused marketing strategy is to build frequency are really the strategy that we’re moving forward. And move that customer quickly to an omni environment, because they do spend more as an omni customer. So that’s simply the story. And by moving from I think when I walk in the door, there’s a – all of the focus in marketing was top of funnel awareness and on consideration, moving that to a much more robust 360 degree focus that starts with the journey that the customer has primarily in store.

So we’ll start opening more stores this year and we will accelerate that as we move into following years. We have all of the data that we need to indicate, that this is a very sound business strategy for us as we move forward. And we’re going to go into this very thoughtfully, strategically with a test and react mentality as we do this, but I’m feeling excited about the opportunity the runway that we can build by reigniting this method that we’ve used historically and the brand to drive the growth of the brand. That was a big answer to your question, Corey. So I hope – I answered what you wanted to hear.

Corey Tarlowe: Yes, thank you very much, that’s very helpful. And then just, Tim, we’ve talked about controlling the controllables. I know that, that is your focus. And I recognize there’s a lot that you probably couldn’t control at the onset of COVID, and now there’s probably a little bit more in your control now than there has been in quite some time. But as you think about what you can control and you think about prioritizing those actions that you need to take, how do you think about ranking some of those aspects that – you have on your priority list?