ION expands ETF trading capabilities with Tradeweb integration
NEW YORK - Torrid Holdings Inc. (NYSE:CURV) shares plunged 12% after the plus-size women’s apparel retailer reported third-quarter results that fell short of analyst expectations and lowered its full-year outlook, citing execution missteps in its merchandise assortment.
The direct-to-consumer brand reported a third-quarter net loss of $6.4 million, or -$0.06 per share, compared to a loss of -$0.01 per share in the same period last year and worse than analysts’ expectations of -$0.02 per share.
Revenue decreased 10.8% to $235.2 million, missing the consensus estimate of $239.89 million and falling within the company’s guidance range. Comparable sales declined 8.3% YoY.
"Our third quarter results fell short of our expectations due to execution missteps that were largely within our control," said CEO Lisa Harper. "While several core categories delivered strong comparable growth, these gains were more than offset by an imbalance in our assortment mix."
Gross profit margin contracted to 34.9% from 36.1% in the year-ago quarter. Adjusted EBITDA was $9.8 million, representing 4.2% of net sales, down from $19.6 million or 7.4% of net sales in the prior-year period.
Looking ahead, Torrid lowered its full-year fiscal 2025 guidance, now expecting revenue between $995 million and $1.002 billion, below the consensus estimate of $1.021 billion. The company also reduced its adjusted EBITDA forecast to between $59 million and $62 million.
The retailer has closed 74 Torrid stores year-to-date as part of its optimization strategy, bringing its total store count to 560 at quarter-end. Management plans to close up to 180 stores by year-end to better align with current demand and sales channels.
Harper emphasized that the company has already taken "decisive corrective actions" including strengthening merchandising guardrails, rebalancing assortment architecture, reintroducing a more profitable footwear program, and accelerating chase orders in key core categories.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.