Torrid Holdings hits record low on reducing FY sales forecast, PT cuts

Torrid Holdings

09/12/2022 15:38

** Shares of women's plus-size clothing retailer Torrid
Holdings Inc  CURV.N  fall as much as 21.3% to $3.36 - a record
low 
    ** Company on Thursday cut FY 2022 sales forecast and missed
Q3 est
    ** CURV expects FY 2022 net sales between $1.24 bln and
$1.26 bln vs previous forecast of $1.26 bln-$1.30 bln  
    ** Torrid Holdings reported Q3 net sales of $290.03 mln vs
est of $299.20 mln - Refinitiv
    ** "Similar to the trends experienced at other retailers, we
saw a slowdown in consumer demand during the month of October
that coincided with our Torrid cash event, which typically makes
up a large portion of quarterly sales" - CEO Lisa Harper
    ** CURV's gross profit margin was 31.6% vs last year's
40.9%; company says decline was due to higher discounts and
promotions related to inventory clearance activity
    ** At least 3 brokerages cut PTs on Torrid Holdings
    ** "With 4Q promotional activity and macro-related headwinds
expected to continue, we believe CURV has a long-term
opportunity to gain share in a fragmented and under-served
market, due to its e-commerce penetration and category expansion
initiatives," says Jefferies
    ** YTD, stock down 65.1%
 (Reporting by Granth Vanaik in Bengaluru)
 ((Granth.Vanaik@thomsonreuters.com))