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

Key Points

• Torrid beat Wall Street estimates, reporting adjusted EPS of $0.00 versus expectations for a $0.02 loss, while revenue came in at $245.8 million, above the $239.88 million consensus.
• Management said Q1 results were in line with or above guidance, with adjusted EBITDA of $17.6 million and plans for a stronger second half as marketing, customer-file growth, and footwear improve.
• The company kept its full-year outlook unchanged at $940 million-$960 million in sales and $65 million-$75 million in adjusted EBITDA, despite comparable sales slipping 1.7% in the quarter.

Torrid (NYSE:CURV - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.00 earnings per share (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 Up 17.6%

CURV opened at $1.64 on Friday. The company has a market cap of $162.68 million, a price-to-earnings ratio of -13.62 and a beta of 0.93. Torrid has a 52-week low of $0.94 and a 52-week high of $5.39. The firm's fifty day simple moving average is $1.69 and its two-hundred day simple moving average is $1.35.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on CURV. Zacks Research raised shares of Torrid from a "hold" rating to a "strong-buy" rating in a report on Friday, May 15th. Telsey Advisory Group reissued a "market perform" rating and set a $2.00 price target on shares of Torrid in a report on Monday, March 16th. BTIG Research reissued a "neutral" rating on shares of Torrid in a report on Friday. Finally, Weiss Ratings reissued 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 assigned a Buy rating, three have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $1.44.

Insider Transactions at Torrid

In other news, CFO Paula Dempsey sold 42,785 shares of the stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $2.06, for a total value of $88,137.10. Following the completion of the sale, the chief financial officer directly owned 227,923 shares in the company, valued at $469,521.38. This represents a 15.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Ashlee Wheeler sold 30,013 shares of the stock in a transaction dated 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 sale, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. 5.85% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Torrid

Hedge funds have recently modified their holdings of the business. Cresset Asset Management LLC acquired a new stake in shares of Torrid in the third quarter valued at about $176,000. Bridgeway Capital Management LLC lifted its position in Torrid by 47.2% during the fourth quarter. Bridgeway Capital Management LLC now owns 155,900 shares of the company's stock worth $153,000 after buying an additional 50,000 shares in the last quarter. State of Wyoming lifted its position in Torrid by 17.3% during the second quarter. State of Wyoming now owns 44,628 shares of the company's stock worth $132,000 after buying an additional 6,580 shares in the last quarter. Rhumbline Advisers lifted its position in Torrid by 27.1% during the first quarter. Rhumbline Advisers now owns 21,886 shares of the company's stock worth $120,000 after buying an additional 4,673 shares in the last quarter. Finally, Creative Planning lifted its position in Torrid by 45.4% during the second quarter. Creative Planning now owns 37,291 shares of the company's stock worth $110,000 after buying an additional 11,641 shares in the last quarter. 81.82% of the stock is currently owned by institutional investors and hedge funds.

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.

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