FMP
Nov 27, 2024(Last modified: Nov 28, 2024)
Torrid Holdings Inc. (NYSE: CURV) is a leading direct-to-consumer brand in North America, specializing in apparel, intimates, and accessories for women sizes 10 to 30. The company is set to release its quarterly earnings on December 3, 2024, with Wall Street analysts estimating an earnings per share (EPS) of $0.03 and projected revenue of approximately $284.3 million.
CURV has seen a remarkable stock price increase of 19.1% over the past month, significantly outperforming the broader retail apparel industry, which rose by 5.2%. This surge underscores Torrid's strong position in the plus-size fashion market, a segment that remains largely underserved. The company's strategic focus and operational strengths have been key drivers of this momentum.
The market anticipates a year-over-year increase in earnings for CURV, driven by higher revenues for the quarter ending October 2024. Investors are keenly watching to see if the company's actual results will surpass expectations, as this could positively influence the stock's price. A positive earnings surprise could lead to a rise in the stock price, while a miss might result in a decline.
CURV's financial metrics provide insight into its valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 30.32, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio is about 0.37, suggesting a relatively low valuation compared to its sales. The enterprise value to sales ratio is approximately 0.74, reflecting the company's total valuation in relation to its sales.
Despite a negative debt-to-equity ratio of -1.77, which may indicate a higher level of debt compared to equity, CURV's enterprise value to operating cash flow ratio is around 10.55, showing how many times the operating cash flow can cover the enterprise value. The current ratio is approximately 0.88, suggesting potential challenges in covering short-term liabilities with short-term assets. Investors are advised to consider these factors in their decision-making process.
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