William Blair analyst Dylan Carden has maintained their neutral stance on CURV stock, giving a Hold rating on December 2.
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Dylan Carden has given his Hold rating due to a combination of factors impacting Torrid Holdings. The company reported disappointing third-quarter results, with sales falling short of expectations and a significant reduction in full-year sales and earnings guidance. This underperformance was largely attributed to assortment missteps, particularly in the tops category, and the decision to pause its China-sourced footwear business, both of which significantly impacted sales.
Additionally, Torrid’s gross margin and adjusted EBITDA were below expectations, reflecting challenges in the digital channel and increased promotional activity. Despite these setbacks, management is focused on strategic initiatives to improve execution, such as refining its assortment strategy and optimizing its store network. However, the ongoing volatility and reduced visibility into the company’s future performance warrant a cautious approach, justifying the Hold rating.
In another report released on December 2, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $1.50 price target.