Torrid: Execution Progress but Soft Comps and Turnaround Timing Justify Sell Rating

Brooke Roach, an analyst from Goldman Sachs, maintained the Sell rating on Torrid Holdings. The associated price target is $0.75.

Brooke Roach has given his Sell rating due to a combination of factors that, in her view, limit the stock’s upside despite the recent earnings beat. While Torrid’s cost controls supported better‑than‑expected margins and management is executing on product and sub‑brand initiatives, underlying comparable sales remain under pressure and key categories like footwear are only partially restored, muting near‑term growth visibility.

Roach also appears concerned that the strategic initiatives, including scaling opening price points, expanding sub‑brands, and deepening footwear, will take time to materially impact financial performance, pushing most benefits into FY26. Against this backdrop of soft comps, execution risk, and a still‑challenged demand environment, she sees the current share price as overvaluing the pace and magnitude of the turnaround, supporting a 12‑month price target below the prevailing market price and justifying a Sell recommendation.

According to TipRanks, Roach is a 3-star analyst with an average return of 2.7% and a 51.21% success rate. Roach covers the Consumer Cyclical sector, focusing on stocks such as Ross Stores, Tapestry, and Gap Inc.