Torrid Shares Down 20% After Cutting 4Q, FY21 Guidance

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by Michael Dabai

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Torrid Holdings Inc. in afternoon trading after the company cut fourth-quarter and fiscal-year sales and adjusted EBITDA guidance. U.S. shares fell 20% to $8.56, citing labor challenges from the Omicron version.

The direct-to-consumer apparel, intimate and accessories brand guided for fourth-quarter net sales of $300 million to $305 million, dropping to $335 million from prior guidance of $325 million. Torid adjusted adjusted earnings before interest, taxes, depreciation and amortization guidance of $23 million to $25 million from prior guidance of $35 million to $40 million.

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For the fiscal year, the company said it now expected net sales of $1.265 billion to $1.27 billion, up from prior guidance of $1.29 billion to $1.3 billion. Guidance for adjusted EBITDA is in the range of $240 million to $242 million, compared to its prior guidance range of $252 million to $257 million.

Chief Executive Liz Munoz said the company had a strong start to its fourth quarter, but the Omicron version negatively impacted performance largely due to labor challenges at its distribution center and some of its stores.

“While we are not a business heavily dependent on holiday sales, our Torrid Cash event in January saw a negative impact from these factors,” said Ms Munoz.

“The industry challenges we currently face are largely transitory and we are taking steps to mitigate the impacts,” Ms Munoz said.

Write to Michael Dabai at [email protected]

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