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NEW YORK - Shares of Torrid Holdings Inc. (NYSE:CURV) rose 4.4% in after-hours trading on Thursday after the plus-size women’s apparel retailer reported first-quarter earnings that beat analyst expectations, despite revenue falling short of estimates.
Torrid posted Q1 adjusted earnings per share of $0.06, exceeding the analyst consensus of $0.05. However, revenue declined 4.9% year-over-year to $266 million, missing estimates of $278.83 million.
Comparable sales decreased 3.5% in the quarter compared to the same period last year. Gross profit margin contracted to 38.1% from 41.3% a year ago, which the company attributed to strategic promotional activity and corporate investments.
"I’m proud of the strong progress we made this quarter across our strategic initiatives," said CEO Lisa Harper. "We delivered first quarter results in line with expectations, with $266 million in net sales and $27.1 million in Adjusted EBITDA—reflecting our continued focus on disciplined execution and profitability."
For the second quarter, Torrid expects revenue between $250 million and $265 million, below the consensus estimate of $279.4 million. The company also announced plans to close up to 180 underperforming stores this year to reduce fixed costs and reinvest in growth areas.
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