Torrid Holdings Inc. CURV reported robust fourth-quarter financial results surpassing analysts’ expectations on Thursday.
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Torrid Holdings disclosed a GAAP loss of 4 cents per share, outperforming market predictions of a 7 cents per share loss. Quarterly sales stood at $293.500 million, exceeding estimates of $274.827 million as per data from Benzinga Pro.
The company’s Chief Executive Officer, Lisa Harper, expressed satisfaction with the improved business fundamentals in fiscal 2023. Harper highlighted enhancements in assortment, reduced inventory levels, improved product costs, and optimized marketing investments. Encouraged by the sales and margins uptick due to new merchandise collections, Harper emphasized the solid Q4 results as a stepping stone for the future. Torrid plans to build on core strategic initiatives in fiscal 2024 to achieve consistent results and significant cash flow generation.
For the first quarter, Torrid projects net sales in the range of $277 million to $282 million, falling short of market estimates at $296.44 million. The company anticipates FY24 net sales of $1.135 billion to $1.155 billion, slightly below expectations of $1.14 billion.
Torrid’s shares retracted by 3.7% to trade at $4.6999 on Monday.
In response to the earnings reveal, analysts revised their price targets for Torrid Holdings.
- Telsey Advisory Group raised Torrid’s price target from $5 to $6, while analyst Dana Telsey sustained a Market Perform rating.
- Goldman Sachs hiked the price target on Torrid from $2.95 to $5.75. Brooke Roach, analyst at Goldman Sachs, maintained a Neutral rating.
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