Positive Outlook for Torrid Holdings Amid Strategic Initiatives and Cost Optimization

Lorraine Hutchinson, an analyst from Bank of America Securities, reiterated the Buy rating on Torrid Holdings (CURV – Research Report). The associated price target was lowered to $7.00.

Lorraine Hutchinson’s rating is based on several strategic initiatives and financial performance indicators that suggest a positive outlook for Torrid Holdings. Despite macroeconomic uncertainties and the exit from its shoe business, Torrid Holdings reported a first-quarter earnings per share that surpassed expectations, largely due to savings from store optimization. This indicates effective cost management and a promising turnaround strategy, which supports the Buy rating.
Furthermore, the company’s decision to close 180 stores and focus on digital channels aligns with consumer shopping trends, particularly among younger demographics, and is expected to enhance EBITDA margins. The introduction of new sub-brands and increased delivery frequency is anticipated to drive sales growth in the latter half of the year. Additionally, management’s plans to offset tariff pressures through cost optimization further reinforce confidence in the company’s ability to navigate near-term challenges while maintaining long-term growth potential.

Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CURV in relation to earlier this year.