Shares of women’s apparel and accessories provider Torrid Holdings (NYSE:CURV) are sliding lower today after the company’s first-quarter numbers fell short of estimates.
Revenue declined 10.5% year-over-year to $293.9 million, missing estimates by ~$16 million. EPS at $0.11 too landed short of expectations by $0.02. The company’s comparable sales dropped by 14% with gross margin contracting by nearly 134 basis points to 37.7%. The total store count at the end of the quarter stood at 638.
Amid macroeconomic challenges and high labor costs, Torrid now expects fiscal 2023 net sales to hover between $1.095 billion and $1.145 billion. Adjusted EBITDA is seen landing between $115 million and $130 million.
In comparison, the company had earlier guided for full-year net sales between $1.27 billion and $1.32 billion with adjusted EBITDA in the range of $140 million and $152 million. Consequently, the scaled-back outlook is weighing on investor sentiment in the early trade today.
Overall, the Street has a $4.63 consensus price target on CURV, pointing to a nearly 87.5% potential upside in the stock.
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