Torrid (NYSE:CURV) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Torrid (NYSE:CURV) announced its earnings results on Thursday. The company reported $0.00 EPS for the quarter, beating 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 Stock Up 17.6%

NYSE:CURV opened at $1.64 on Friday. The business’s 50 day moving average is $1.69 and its two-hundred day moving average is $1.35. Torrid has a 52 week low of $0.94 and a 52 week high of $5.39. The company has a market cap of $162.68 million, a PE ratio of -13.62 and a beta of 0.93.

Wall Street Analysts Forecast Growth

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

Insider Buying and Selling

In other Torrid news, insider Ashlee Wheeler sold 30,013 shares of the stock in a transaction that occurred on Monday, April 13th. The stock was sold at an average price of $1.98, for a total transaction of $59,425.74. Following the transaction, the insider owned 205,856 shares of the company’s stock, valued at $407,594.88. This trade represents a 12.72% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Paula Dempsey sold 42,785 shares of the stock in a transaction that occurred on Tuesday, April 14th. The stock was 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 in the company, valued at approximately $469,521.38. This represents a 15.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 5.85% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of CURV. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Torrid by 338.3% during 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 during the last quarter. Rhumbline Advisers lifted its holdings in shares of Torrid by 27.1% in the 1st quarter. Rhumbline Advisers now owns 21,886 shares of the company’s stock worth $120,000 after purchasing an additional 4,673 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Torrid by 15.1% in the 2nd quarter. Geode Capital Management LLC now owns 413,370 shares of the company’s stock worth $1,220,000 after purchasing an additional 54,199 shares during the last quarter. Creative Planning lifted its holdings in shares of Torrid by 45.4% in the 2nd quarter. Creative Planning now owns 37,291 shares of the company’s stock worth $110,000 after purchasing an additional 11,641 shares during the last quarter. Finally, Marshall Wace LLP bought a new stake in shares of Torrid in the 2nd quarter worth approximately $346,000. Institutional investors own 81.82% of the company’s stock.

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.