Torrid Earnings: What To Look For From CURV

Women’s plus-size apparel retailer Torrid Holdings (NYSE:CURV) will be reporting results tomorrow before the bell. Here’s what to look for.

Torrid met analysts’ revenue expectations last quarter, reporting revenues of $279.8 million, down 4.8% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ earnings and gross margin estimates.

Is Torrid a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Torrid’s revenue to decline 2.1% year on year to $283 million, improving from the 18.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.

The majority of analysts covering the company have 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 twice over the last two years.

Looking at Torrid’s peers in the apparel retailer segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Gap delivered year-on-year revenue growth of 4.8%, beating analysts’ expectations by 2.5%, and Abercrombie and Fitch reported revenues up 21.2%, topping estimates by 4.1%. Gap’s stock price was unchanged after the results, while Abercrombie and Fitch was down 14.7%.

Read our full analysis of Gap’s results here and Abercrombie and Fitch’s results here.

There has been positive sentiment among investors in the apparel retailer segment, with share prices up 4.5% on average over the last month. Torrid is down 12.6% during the same time and is heading into earnings with an average analyst price target of $6.6 (compared to the current share price of $6.6).

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