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Torrid Holdings (NYSE:CURVE) attracted a downgrade from William Blair after earnings fell short of expectations.
On Thursday night, the company missed both profit and profit for its third-quarter financial results. In addition, its instructions for The fourth quarter came lighter than expected. Management blame inventory problems and escrow pressure related to the promotional activity necessary to clear said inventory for poor forecasts and results.
On the back of that report, William Blair analyst Dylan Carden downgraded the stock to a Should Hold parity from its previous Buy equivalent.
“The extent of this year’s sweeping discounts could have a further impact on companies next year, as Torrid customers have conditioned to expect inflated and profitable promotions,” he explains. there will likely be more clothing units in her wardrobe next year,” he explains.
Although Carden noted that the stock is certainly not expensive after earnings, his confidence in the upside throughout the next year was tempered by the magnitude of Thursday’s miss. In particular, his belief in improving EPS has been overshadowed.
Shares of Torrid Holdings (CURVE) fall 20.98% switch to afternoon trading.
Read more about details of earnings results.
