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

Torrid (NYSE:CURV) posted its quarterly earnings data on Thursday. The company reported $0.00 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.02) by $0.02, reports. The firm had revenue of $245.80 million during the quarter, compared to analyst estimates 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%

Shares of CURV stock opened at $1.64 on Friday. The firm has a fifty day moving average price of $1.69 and a 200 day moving average price of $1.35. The company has a market cap of $162.68 million, a P/E ratio of -13.62 and a beta of 0.93. Torrid has a 12 month low of $0.94 and a 12 month high of $5.39.

Wall Street Analyst Weigh In

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

Insiders Place Their Bets

In related news, CFO Paula Dempsey sold 42,785 shares of the business’s 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 completion of the sale, 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Ashlee Wheeler sold 30,013 shares of the business’s 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 sale, the insider directly owned 205,856 shares of the company’s stock, valued at approximately $407,594.88. This trade represents a 12.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 5.85% of the company’s stock.

Institutional Investors Weigh In On Torrid

A number of institutional investors and hedge funds have recently made changes to their positions in CURV. Nomura Holdings Inc. raised its holdings in shares of Torrid by 94.8% in the third quarter. Nomura Holdings Inc. now owns 6,233,022 shares of the company’s stock valued at $10,908,000 after buying an additional 3,034,083 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of Torrid by 191.1% in the second quarter. Bank of America Corp DE now owns 1,917,793 shares of the company’s stock valued at $5,657,000 after buying an additional 1,258,934 shares during the last quarter. Jacobs Levy Equity Management Inc. purchased a new stake in shares of Torrid in the third quarter valued at about $1,453,000. Millennium Management LLC purchased a new stake in shares of Torrid in the third quarter valued at about $669,000. Finally, Hudson Bay Capital Management LP purchased a new stake in shares of Torrid in the second quarter valued at about $1,106,000. 81.82% of the stock is owned by hedge funds and other institutional investors.

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.