Torrid Holdings (NYSE:CURV) fell sharply in early trading on Thursday after the retailer lowered its Q3 guidance. Torrid now expects sales of $290M to $3305M vs. $312M consensus and adjusted EBITDA of $32M to $38M vs. $52M consensus. For the full year, CURV sees sales of $1.26B to $1.30B vs. a prior view for $1.30B to $1.37B and $1.33B consensus.
On Wall Street, Bank of America is defending the mall stock.
The firm reiterated a Buy rating on Torrid (CURV) given its differentiated fit, underserved and growing addressable market, and opportunities to engage the customer with new marketing.
"We are encouraged to hear that disruptions from its recent distribution center update were corrected by quarter end, and the changes will enable higher throughput in 3Q."
Analyst Lorraine Hutchinson and team think the CURV guidance that was issued is potentially conservative due to new launches, more targeted promotions and better inventory controls in place. BofA has a price objective of $6 on the stock.