Torrid (NYSE:CURV) Announces Earnings Results

Torrid (NYSE:CURV) issued its earnings results on Thursday. The company reported $0.00 EPS for the quarter, topping analysts’ consensus estimates of ($0.02) by $0.02, reports. The firm had revenue of $245.80 million for the quarter, compared to analysts’ expectations of $239.88 million.

Here are the key takeaways from Torrid’s conference call:

• Torrid posted Q1 net sales of $245.8 million and adjusted EBITDA of $17.6 million, both at or above guidance, and management said the results support a stronger second half.
• Comparable sales fell 1.7% in the quarter, but excluding footwear comps were up 1.2%, highlighting that the footwear reset remained the main drag on performance.
• The company said its opening price point strategy, sub-brands, and key apparel categories like knit tops and TRU are working well, with sub-brands growing 75% year over year in Q1.
• Torrid largely completed its store optimization program, closing 20 more stores in Q1 and expecting 7-8 more in Q2, while saying customer retention has remained strong and savings are being reinvested into growth initiatives.
• Management kept its full-year outlook for $940 million-$960 million in sales and $65 million-$75 million of adjusted EBITDA, and expects the back half to improve as footwear returns, marketing initiatives scale, and customer-file growth accelerates.

Torrid Stock Performance

Shares of CURV stock opened at $1.64 on Friday. The stock has a market capitalization of $162.68 million, a P/E ratio of -13.62 and a beta of 0.93. The company has a 50 day moving average price of $1.69 and a 200 day moving average price of $1.35. Torrid has a fifty-two week low of $0.94 and a fifty-two week high of $5.39.

Insider Buying and Selling

In related news, insider Ashlee Wheeler sold 30,013 shares of Torrid stock in a transaction that occurred on Monday, April 13th. The shares were sold at an average price of $1.98, for a total value of $59,425.74. Following the completion of the transaction, the insider owned 205,856 shares in the company, valued at approximately $407,594.88. The trade was a 12.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Paula Dempsey sold 42,785 shares of the business’s stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $2.06, for a total transaction of $88,137.10. Following the transaction, the chief financial officer owned 227,923 shares of the company’s stock, valued at $469,521.38. This trade represents a 15.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 5.85% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Fund 1 Investments LLC grew its holdings in Torrid by 0.9% during the 4th quarter. Fund 1 Investments LLC now owns 9,904,856 shares of the company’s stock worth $9,691,000 after acquiring an additional 90,000 shares in the last quarter. Nomura Holdings Inc. grew its holdings in Torrid by 94.8% during the 3rd quarter. Nomura Holdings Inc. now owns 6,233,022 shares of the company’s stock worth $10,908,000 after acquiring an additional 3,034,083 shares in the last quarter. Bank of America Corp DE grew its holdings in Torrid by 191.1% during the 2nd quarter. Bank of America Corp DE now owns 1,917,793 shares of the company’s stock worth $5,657,000 after acquiring an additional 1,258,934 shares in the last quarter. Vanguard Group Inc. grew its holdings in Torrid by 13.3% during the 3rd quarter. Vanguard Group Inc. now owns 1,310,698 shares of the company’s stock worth $2,294,000 after acquiring an additional 153,973 shares in the last quarter. Finally, Citadel Advisors LLC grew its holdings in Torrid by 10.0% during the 3rd quarter. Citadel Advisors LLC now owns 874,608 shares of the company’s stock worth $1,531,000 after acquiring an additional 79,357 shares in the last quarter. Institutional investors and hedge funds own 81.82% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on CURV shares. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Torrid in a research note on Monday, April 20th. Zacks Research raised shares of Torrid from a “hold” rating to a “strong-buy” rating in a research note on Friday, May 15th. BTIG Research reaffirmed a “neutral” rating on shares of Torrid in a research note on Friday. Finally, Telsey Advisory Group reaffirmed a “market perform” rating and set a $2.00 target price on shares of Torrid in a research note on Monday, March 16th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $1.44.

About Torrid

Torrid, trading under the ticker CURV on the New York Stock Exchange, is a specialty retailer focused on plus-size women’s fashion. Established in 2001 as a division of Hot Topic, Torrid has built its reputation on offering trend-driven apparel and accessories designed specifically for women who wear size 10 to 30. The company’s product assortment spans casual wear, denim, activewear, intimates, footwear, and fashion‐forward accessories, catering to a demographic that has historically been underserved by mainstream retailers.

Over the years, Torrid has expanded from its early mall‐based store footprint to become a multichannel business.