Torrid Q3: Expectations Collapsed, It Now Approaches An Interesting Valuation
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Torrid Holdings reported disappointing Q3 2024 results with a 4.2% decline in sales and a 6.5% drop in comparable sales, causing a 30% stock drop. The company anticipates a challenging Q4 with expected sales between $250 million and $270 million and operating and net losses. New assortments post-Christmas and in H1 2025 may revive the brand, but the current valuation is only fair.
December 04, 2024 | 8:30 pm
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NEGATIVE IMPACT
Torrid Holdings' Q3 2024 results were disappointing, with a 4.2% sales decline and a 30% stock drop. The company expects a challenging Q4 with sales between $250 million and $270 million and operating and net losses. New assortments in 2025 may help, but current valuation is fair.
The 30% stock drop following disappointing Q3 results indicates a negative market reaction. The anticipated challenging Q4 with expected losses further supports a negative short-term outlook. However, potential brand revival in 2025 provides a slight positive long-term outlook.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100