Torrid Holdings Inc (NYSE: CURV) reported market-beating results for its fiscal second quarter on Wednesday. Shares of the company are up about 30% this morning on better-than-expected sales guidance for the future.
Torrid said its adjusted EBITDA came in at $86.5 million that represents an annualised growth of 153%. On an adjusted basis, it earned 36 cents a share in Q2. The fashion company noted a 34% year-over-year growth in net sales to $332.87 million.
In comparison, analysts had called for 13 cents of adjusted EPS on $278.05 million in net sales.
Other notable figures
Other notable figures in Torrid’s earnings report on Wednesday include a 30% growth in comparable sales, a 45% increase in gross profit margin, and an over 300% jump in SG&A expenses.
The California-based company concluded the quarter with $40.05 million of operating loss and $50.5 million in cash and equivalents, as per the earnings press release.
For the full year, Torrid now forecasts up to $1.31 billion in sales, including $305 million to $315 million it expects in the current quarter. Experts’ forecasts for its Q3 and full-year sales are capped at $294.74 million and $1.26 billion, respectively.
Jefferies sees a 30% upside in Torrid’s stock
After the strong quarterly results, Jefferies’ Janine Stichter reiterated her ‘buy’ rating on Torrid Holdings. She has a price target of $30 on the stock that represents another 30% increase from here.
Torrid debuted on the New York Stock Exchange earlier this year in July at a per-share price of $24 and had hit a high of $31 late last month. The $2.58 billion company now has a price to earnings ratio of 99.34.
The post Here’s why Torrid Holdings shares are up 30% on Thursday appeared first on Invezz.