Women’s plus-size apparel retailer Torrid Holdings (NYSE: CURV) will be reporting results tomorrow afternoon. Here’s what investors should know.
Torrid missed analysts’ revenue expectations by 6.6% last quarter, reporting revenues of $263.8 million, down 4.2% year on year. It was a disappointing quarter for the company, with full-year EBITDA guidance missing analysts’ expectations.
Is Torrid a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Torrid’s revenue to decline 9.9% year on year to $264.4 million, a further deceleration from the 2.6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Torrid has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Torrid’s peers in the apparel retailer segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Gap’s revenues decreased 3.5% year on year, beating analysts’ expectations by 1.9%, and Urban Outfitters reported revenues up 9.4%, in line with consensus estimates. Gap traded up 18.6% following the results while Urban Outfitters was also up 8.1%.
Read our full analysis of Gap’s results here and Urban Outfitters’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, but, apparel retailer stocks have not not been invited to the party, with share prices down 16.3% on average over the last month. Torrid is down 5.3% during the same time and is heading into earnings with an average analyst price target of $4.90 (compared to the current share price of $5.88).
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