Why Torrid Holdings Stock Tanked 20% at the Open Today
Shares of clothing retailer Torrid Holdings (NYSE: CURV) fell dramatically as trading got underway on Jan. 10, dropping a steep 20% at the opening bell. The stock was still down by around 13% an hour or so into the day. The big news was a press release that had come out before Wall Street opened for business.
Torrid is presenting at a conference, so it decided to provide an update to the broader market about what it might say. This is common practice, especially if the discussion could include market-moving news. That was clearly the case here, given the steep share price decline. CEO Liz Munoz tried to put the best possible spin on it, however, explaining that Torrid "had a strong start" to its fourth quarter. But Munoz then shifted gears to say that the omicron variant of the coronavirus "negatively impacted performance largely due to labor challenges at both our distribution center and a portion of our stores." That suggests that the fourth quarter probably won't be as good as investors had hoped.
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Source Fool.com
