Torrid shares edge higher on Q2 earnings beat

NEW YORK - Torrid Holdings Inc. (NYSE:CURV) shares rose 1% in premarket trading Wednesday after the plus-size women's apparel retailer reported better-than-expected second quarter results.

The company posted adjusted earnings per share of $0.08, topping analyst estimates of $0.07. Revenue came in at $284.6 million, exceeding the consensus forecast of $282.88 million and landing at the high end of the company's guidance range.

Comparable sales decreased 0.8% in Q2, comprised of a 6.4% increase in regular price comparable sales offset by an approximate 50% decrease in markdown comparable sales. Gross profit margin expanded 323 basis points to 38.7%, driven by lower product costs and increased full-price sales.

"We are very pleased with our second quarter performance, which came in at the high end of sales guidance and exceeded our adjusted EBITDA expectations," said CEO Lisa Harper. "Customers are responding to our new product offerings, resulting in regular price comparable sales growth of 6.4%, and gross margin expansion of 323 basis points."

For the third quarter, Torrid expects revenue between $280 million and $285 million, compared to analyst estimates of $288 million. The company forecasts full-year fiscal 2024 revenue of $1.135 billion to $1.145 billion, in line with the $1.139 billion consensus.

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Source: Investing.com