Women’s plus-size apparel retailer Torrid Holdings (NYSE: CURV) will be announcing earnings results this Wednesday after the bell. Here’s what investors should know.
Torrid beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $262.8 million, down 7.7% year on year. It was a disappointing quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations significantly.
Is Torrid a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Torrid’s revenue to decline 9% year on year to $239.9 million, a further deceleration from the 4.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Torrid has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Torrid’s peers in the apparel retailer segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Urban Outfitters delivered year-on-year revenue growth of 12.3%, beating analysts’ expectations by 2.6%, and Gap reported revenues up 3%, topping estimates by 0.8%. Urban Outfitters traded up 13.5% following the results while Gap was also up 8.4%.
Read our full analysis of Urban Outfitters’s results here and Gap’s results here.
There has been positive sentiment among investors in the apparel retailer segment, with share prices up 5.2% on average over the last month. Torrid is up 16.4% during the same time and is heading into earnings with an average analyst price target of $2.72 (compared to the current share price of $1.43).
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