Q3 Earnings Outperformers: Torrid (NYSE:CURV) And The Rest Of The Apparel Retailer Stocks
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Torrid (NYSE:CURV), and the best and worst performers in the apparel retailer group.
Apparel sales are not driven so much by personal needs but by seasons, trends, and innovation, and over the last few decades, the category has shifted meaningfully online. Retailers that once only had brick-and-mortar stores are responding with omnichannel presences. The online shopping experience continues to improve and retail foot traffic in places like shopping malls continues to stall, so the evolution of clothing sellers marches on.
The 8 apparel retailer stocks we track reported a strong Q3; on average, revenues beat analyst consensus estimates by 3.6% while next quarter's revenue guidance was 3.4% above consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but apparel retailer stocks held their ground better than others, with the share prices up 9.6% on average since the previous earnings results.
Torrid (NYSE:CURV)
Promoting a message of body positivity and inclusiveness, Torrid Holdings (NYSE:CURV) is a plus-size women’s apparel and accessories retailer.
Torrid reported revenues of $275.4 million, down 8.3% year on year, topping analyst expectations by 12%. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings and revenue estimates.
Lisa Harper, Chief Executive Officer, stated, “Our third quarter results came in ahead of our expectations on both the top and bottom lines. Our customers responded to our new collections, as well as to our new marketing initiatives, which drove improvements in our traffic trends in our stores and online, leading to sequential improvement in our comparable store sales. While we know we have more work to do, we are encouraged by the trends in our business. However, given the current environment, which is promotional and dynamic, we are planning our business accordingly. We will remain focused on controlling expenses and inventory to position us to continue to deliver improvement in our results. "
Torrid achieved the biggest analyst estimates beat and highest full-year guidance raise of the whole group. The stock is up 23% since the results and currently trades at $5.13.
Is now the time to buy Torrid? Access our full analysis of the earnings results here, it's free.
Best Q3: Gap (NYSE:GPS)
Operating under The Gap, Old Navy, Banana Republic, and Athleta brands, The Gap (NYSE:GPS) is an apparel and accessories retailer that sells its own brand of casual clothing to men, women, and children.
Gap reported revenues of $3.77 billion, down 6.7% year on year, outperforming analyst expectations by 4.4%. It was an incredible quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 40% since the results and currently trades at $19.13.
Is now the time to buy Gap? Access our full analysis of the earnings results here, it's free.
Victoria's Secret (NYSE:VSCO)
Spun off from L Brands in 2020, Victoria’s Secret (NYSE:VSCO) is an intimate clothing and beauty retailer that sells its own brands of lingerie, undergarments, and personal fragrances.
Victoria's Secret reported revenues of $1.27 billion, down 4% year on year, falling short of analyst expectations by 0.4%. It was a weak quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts' gross margin estimates.
The stock is up 2.3% since the results and currently trades at $24.13.
Read our full analysis of Victoria's Secret's results here.
American Eagle (NYSE:AEO)
With a heavy focus on denim, American Eagle Outfitters (NYSE:AEO) is a specialty retailer offering an assortment of apparel and accessories to young adults.
American Eagle reported revenues of $1.30 billion, up 4.9% year on year, surpassing analyst expectations by 1.6%. It was a mixed quarter for the company, with revenue exceeding estimates this quarter, driven by better-than-expected same-store store sales growth at both American Eagle and Aerie. On the other hand, its gross margin and operating income guidance for the full year, despite being raised, missed analysts' expectations.
The stock is up 1.7% since the results and currently trades at $20.08.
Read our full, actionable report on American Eagle here, it's free.
Children's Place (NASDAQ:PLCE)
Offering sizes up to young teens, The Children’s Place (NASDAQ:PLCE) is a specialty retailer that sells its own brands of kid’s apparel and accessories.
Children's Place reported revenues of $480.2 million, down 5.7% year on year, surpassing analyst expectations by 3.4%. It was a slower quarter for the company, with underwhelming earnings guidance for the full year.
Children's Place had the weakest full-year guidance update among its peers. The stock is down 17.8% since the results and currently trades at $23.51.
Read our full, actionable report on Children's Place here, it's free.
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The author has no position in any of the stocks mentioned
