Torrid Holdings shares sink after sales warning

torrid-holdings-shares-sink-after-sales-warning

Torrid Holdings Inc. CURV, -16.87% shares sank 9.5% in Monday premarket trading after the plus-size women’s fashion retailer issued a sales warning for the fourth quarter. The company now expects sales in the range of $300 million to $305 million, down from previous guidance of $325 million to $335 million. The FactSet consensus is for $331.5 million. For the year, the company is guiding for sales in the range of $1.265 billion to $1.270 billion. The FactSet consensus is for $1.297 billion. “We had a strong start to our fourth quarter, however, the spread of the omicron variant negatively impacted performance largely due to labor challenges at both our distribution center and a portion of our stores,” said Chief Executive Liz Muñoz in a statement. “While we are not a business heavily dependent on holiday sales, our Torrid cash event in January saw a negative impact from these factors.” Muñoz called the challenges “largely transitory.” Torrid shares began trading in July 2021. The stock has fallen 27.5% over the last three months while the S&P 500 index SPX, -1.26% has gained 6.5% for the period.

Source: Marketwatch

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