Torrid Holdings Sees Strong Third Quarter Performance

Shares of Torrid Holdings experienced a significant rise after the company reported better-than-expected sales in the third quarter. The stock surged 15% to $4.76 in post-market trading, following a minor decline of 2.1% during the regular session.

Torrid, a clothing and accessory brand based in City of Industry, Calif., raised its full-year revenue guidance due to the impressive sales performance. Previously, the company had projected sales between $1.08 billion to $1.115 billion, but it has now revised its outlook to a range of $1.125 billion to $1.14 billion.

In the third quarter, Torrid recorded sales of $275.4 million, surpassing analysts' expectations of $245.8 million. This 8.3% decline in sales was considerably less than the anticipated 20% drop in same-store sales.

Although Torrid experienced a loss of $2.7 million, or 3 cents per share, during this period, it exceeded the forecasted loss of 5 cents per share. Comparatively, in the same quarter last year, the company had achieved a profit of $7.3 million, or 7 cents per share.

CEO Lisa Harper expressed her satisfaction with the customer response to the brand's new collections and marketing initiatives, which contributed to improved traffic trends.