Torrid (NYSE:CURV) Announces Quarterly Earnings Results

Torrid (NYSE:CURV) announced its earnings results on Thursday. The company reported $0.00 earnings per share for the quarter, topping the consensus estimate of ($0.02) by $0.02, reports. The company 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 Trading Up 17.6%

CURV stock opened at $1.64 on Friday. Torrid has a twelve month low of $0.94 and a twelve month high of $5.39. The company’s 50 day moving average is $1.69 and its two-hundred day moving average is $1.35. The stock has a market cap of $162.68 million, a P/E ratio of -13.62 and a beta of 0.93.

Wall Street Analysts Forecast Growth

CURV has been the subject of several recent research reports. BTIG Research reissued a “neutral” rating on shares of Torrid in a research note on Friday. Telsey Advisory Group reissued a “market perform” rating and issued a $2.00 price objective on shares of Torrid in a research note on Monday, March 16th. Zacks Research raised shares of Torrid from a “hold” rating to a “strong-buy” rating in a research note on Friday, May 15th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Torrid in a research note on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, Torrid has an average rating of “Hold” and a consensus price target of $1.44.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Torrid

Hedge funds and other institutional investors have recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Torrid by 338.3% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,039 shares of the company’s stock worth $269,000 after buying an additional 37,850 shares in the last quarter. Rhumbline Advisers raised its stake in Torrid by 27.1% in the 1st quarter. Rhumbline Advisers now owns 21,886 shares of the company’s stock valued at $120,000 after purchasing an additional 4,673 shares during the last quarter. Geode Capital Management LLC raised its stake in Torrid by 15.1% in the 2nd quarter. Geode Capital Management LLC now owns 413,370 shares of the company’s stock valued at $1,220,000 after purchasing an additional 54,199 shares during the last quarter. Creative Planning raised its stake in Torrid by 45.4% in the 2nd quarter. Creative Planning now owns 37,291 shares of the company’s stock valued at $110,000 after purchasing an additional 11,641 shares during the last quarter. Finally, Marshall Wace LLP acquired a new position in Torrid in the 2nd quarter valued at about $346,000. 81.82% of the stock is currently owned by hedge funds and other institutional investors.

Torrid Company Profile

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.