What Happened?
Shares of women’s plus-size apparel retailer Torrid Holdings (NYSE: CURV) fell 22.8% in the morning session after the company reported disappointing second-quarter 2025 results and lowered its full-year financial guidance.
The plus-size apparel retailer's net sales decreased 7.7% year-over-year to $262.8 million, with comparable sales falling 6.9%. Profitability also took a hit, as its gross profit margin shrank 3.2 percentage points year-on-year to 35.6%, and earnings per share fell to $0.02 from $0.08 in the same quarter last year.
Looking ahead, Torrid cut its full-year 2025 forecast, now expecting net sales between $1.015 billion and $1.030 billion. The company also reduced its adjusted EBITDA guidance to a range of $80 million to $90 million. Adding to the negative sentiment, Torrid's revenue guidance for the next quarter fell 7.2% short of Wall Street's expectations.
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What Is The Market Telling Us
Torrid’s shares are extremely volatile and have had 53 moves greater than 5% over the last year. But moves this big are rare even for Torrid and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 3.1% as investors appeared to be positioning themselves ahead of the company's upcoming earnings report.
According to analyst expectations, Torrid's revenue was forecast to decline 8.5% year-over-year to $260.5 million, with adjusted earnings anticipated to be $0.03 per share. Despite the pessimistic analyst outlook, the stock price increase suggested some investors were speculating on a potential earnings surprise or an improved outlook from the company.
Torrid is down 65.2% since the beginning of the year, and at $1.84 per share, it is trading 74% below its 52-week high of $7.06 from January 2025. Investors who bought $1,000 worth of Torrid’s shares at the IPO in June 2021 would now be looking at an investment worth $75.98.
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