Overview

• Torrid Q3 net sales decreased 10.8% to $235.2 mln, slightly missing analyst expectations

• Adjusted EBITDA for Q3 missed analyst estimates, reflecting operational challenges

• Company reported a Q3 net loss of $6.4 mln, citing execution missteps

Outlook

• Torrid expects fiscal 2025 net sales between $995 mln and $1.002 bln

• Company anticipates fiscal 2025 adjusted EBITDA between $59 mln and $62 mln

• Torrid plans up to 180 store closures in fiscal 2025

Result Drivers

• ASSORTMENT IMBALANCE - CEO Lisa Harper attributes Q3 performance shortfall to an imbalance in assortment mix

• CORRECTIVE ACTIONS - Co has strengthened merchandising guardrails and rebalanced assortment architecture

• GROWTH INITIATIVES - Co investing in customer acquisition, loyalty, and brand-building initiatives

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories retailers peer group is "buy."

• Wall Street's median 12-month price target for Torrid Holdings Inc is $2.00, about 51.5% above its December 2 closing price of $1.32

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw9jGRRga

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)