Torrid Holdings Inc. (NYSE:CURV) shares are trading lower premarket on Wednesday after the company reported worse-then-expected third-quarter results and issued fourth-quarter guidance below estimates.
On Tuesday, the company reported net sales declined 4.2% year-over-year to $263.8 million, missing the consensus of $285.8 million, while comparable sales dropped 6.5% in the quarter.
Gross profit margin improved to 36.1% from 33.2% in the prior year’s third quarter, a 285 bps increase driven by lower product costs and higher sales of regular-priced items. EPS of $(0.01) missed the street view of $0.03.
At the end of third-quarter 2024, cash and cash equivalents totaled $44.0 million.
Lisa Harper, Chief Executive Officer of Torrid, said, “While we are encouraged by our customers’ response to the newness in our assortments, given the volatility we have seen in our business, and recognizing that there is still considerable amount of the quarter ahead of us, we are taking a prudent approach to our fourth quarter outlook.”
”As we move into fiscal 2025, we are confident that we have put in place the necessary changes and strategies to position us for growth.”
Outlook: The company anticipates net sales of $255 million – $270 million (vs. consensus of $290.63 million) and adjusted EBITDA of $9.0 million to $15.0 million in the fourth quarter of fiscal 2024.
Torrid lowered its FY24 revenue outlook to $1.083 billion – $1.098 billion (vs. consensus of $1.139 billion) from $1.135 billion – $1.145 billion prior.
Price Action: CURV shares are down 23.6% at $3.50 premarket at the last check Wednesday.
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