Torrid Holdings (CURV) AI Stock Analysis

• Market Cap: $233.26M
• Dividend Yield: N/A
• Average Volume (3M): 555.72K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.61
• Revenue Growth: -4.21%
• EPS Growth: -16.35%
• Country: US
• Employees: 1,810
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Apparel - Retail
• EPS (TTM): 0.06
• Shares Outstanding: 105,072,080
• 10 Day Avg. Volume: 565,349
• 30 Day Avg. Volume: 555,719
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 4.76
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 2.78
• Enterprise Value/Ebitda: 8.90
• 1Y Price Target: $4.31
• Price Target Upside: 91.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 50 Neutral
• Price Target: $2.50 ▲(11.11% Upside)

Torrid Holdings' overall stock score reflects significant financial challenges, including high leverage and declining profitability. While strategic initiatives in digital sales and store optimization are promising, bearish technical indicators and moderate valuation limit upside potential. The stock repurchase agreement and liquidity position provide some support.

Positive Factors

Business Improvements

Efforts to reset and enhance the business are showing signs of bearing fruit, including success in reducing promo reliance, an improved supply chain, and assortment enhancements resonating with a broader audience.

Cost Optimization

Management expects to fully offset tariff pressure through cost optimization efforts and re-prioritization of expenses.

Market Position

Torrid is the dominant player in the large and growing plus-size apparel market, with further share consolidation opportunity as competitors retreat.

Negative Factors

Growth Challenges

Growth has sputtered in recent years with three consecutive years of negative growth and margins sit below historical levels.

Macro and Execution Risks

Torrid faces potential macro and execution risks, as the company accelerates store closures and deals with a selective consumer as it navigates higher tariffs.

Valuation Concerns

FY profitability guidance could prove optimistic, reinforcing apprehension of potential valuation de-rating.

Torrid Holdings Business Overview & Revenue Model

Company Description

Torrid Holdings Inc. operates in women's plus-size apparel and intimates market in North America. The company designs, develops, and merchandises its products under the Torrid and Torrid Curve brand names. It is involved in the sale of tops, bottoms, dresses, denims, activewear, intimates, sleep wear, swim wear, and outerwear products; and non-apparel products comprising accessories, footwear, and beauty products. The company sells its products directly to consumers through its e-commerce platform and its physical stores. As of January 29, 2022, it operated 624 stores in 50 U.S. states, Puerto Rico, and Canada. Torrid Holdings Inc. was incorporated in 2019 and is headquartered in City of Industry, California.

How the Company Makes Money

Torrid Holdings generates revenue primarily through the sale of its plus-size fashion products. The company's revenue streams are driven by its network of retail stores and e-commerce platform, which together offer an integrated shopping experience for customers. Torrid's physical stores serve as both sales channels and brand touchpoints, enhancing customer engagement and loyalty, while its online platform expands its market reach beyond geographic limitations. Additionally, Torrid benefits from strategic marketing initiatives and loyalty programs that encourage repeat purchases. The company's focus on a specific demographic allows it to maintain a dedicated customer base, which is essential for its sustained revenue growth. Furthermore, Torrid may engage in partnerships or collaborations with fashion influencers and designers to boost brand visibility and attract new customers.

Torrid Holdings Financial Statement Overview

Summary

Torrid Holdings is facing financial challenges, with declining revenue and profitability, high leverage, and negative equity. The income statement shows weak profitability, and the balance sheet reflects financial instability with negative equity. However, the company consistently generates positive operating cash flow, which is a positive aspect amidst financial difficulties.

Income Statement

The income statement indicates declining revenue and profitability. The TTM data shows a gross profit margin of 36.65% and a net profit margin of 0.92%, both of which are relatively low. Revenue has decreased over the years, with a negative growth trend from 2022 to 2025. However, the company maintains a positive EBIT margin of 4.32% in TTM, which is a positive aspect, but overall profitability remains weak.

Balance Sheet

The balance sheet reflects financial instability with a negative stockholders' equity of -$183.82 million in TTM, indicating more liabilities than assets. The debt-to-equity ratio is negative, highlighting high leverage. The equity ratio is also negative at -40.73%, indicating significant financial risk and lack of equity support. Despite these challenges, the total assets are slightly stable.

Cash Flow

The cash flow statement shows some resilience, with positive free cash flow of $21.82 million in TTM and a reasonable operating cash flow to net income ratio of 3.15. However, the free cash flow has decreased compared to previous periods, indicating potential cash flow challenges. The company has been able to generate positive cash flow from operations consistently, which is a positive indicator.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.10B	1.15B	1.29B	1.28B	973.51M
Gross Profit	413.47M	405.98M	459.54M	518.97M	330.30M
EBITDA	57.21M	92.05M	181.06M	123.78M	131.76M
Net Income	16.32M	11.62M	50.21M	-29.94M	24.53M
Balance Sheet
Total Assets	488.44M	476.95M	527.26M	578.50M	648.21M
Cash, Cash Equivalents and Short-Term Investments	48.52M	11.73M	13.57M	29.02M	122.95M
Total Debt	466.63M	311.97M	546.33M	599.17M	502.37M
Total Liabilities	679.53M	688.66M	757.49M	836.82M	711.38M
Stockholders Equity	-191.09M	-211.72M	-230.22M	-258.32M	-63.17M
Cash Flow
Free Cash Flow	63.00M	16.77M	29.94M	103.67M	140.25M
Operating Cash Flow	77.39M	42.77M	53.31M	121.22M	151.82M
Investing Cash Flow	-14.39M	-26.00M	-23.37M	-17.55M	-11.57M
Financing Cash Flow	-24.50M	-18.52M	-45.12M	-197.81M	-45.92M

Torrid Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CURV, the sentiment is Negative. The current price of 2.25 is below the 20-day moving average (MA) of 2.33, below the 50-day MA of 3.04, and below the 200-day MA of 4.76, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 33.51 is Neutral, neither overbought nor oversold. The STOCH value of 55.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CURV.

Torrid Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	¥284.31B	15.32	6.82%	2.48%	5.05%	-19.67%
JILL	67 Neutral	$244.53M	7.13	41.77%	1.87%	-2.24%	-33.43%
GCO	60 Neutral	$279.60M	―	-3.07%	―	1.85%	22.34%
ZUMZ	59 Neutral	$280.78M	1,423.64	0.23%	―	3.01%	―
CTRN	52 Neutral	$268.98M	―	-29.52%	―	1.85%	-337.77%
CURV	50 Neutral	$233.26M	23.52		―	-4.21%	-16.35%
TLYS	47 Neutral	$45.83M	―	-47.54%	―	-8.79%	-15.17%

Torrid Holdings Corporate Events

Torrid Holdings Extends Credit Facility Maturity Date

On August 1, 2025, Torrid LLC, a California-based company, executed a Fifth Amendment to its Amended and Restated Credit Agreement with Bank of America, extending the maturity date of its credit facility. The amendment extends the maturity date from June 14, 2026, to the earlier of August 1, 2030, or 91 days prior to the maturity of any material indebtedness, with no other significant changes to the terms.

Torrid Holdings Completes Stock Repurchase and Underwriting Agreement

On June 24, 2025, Torrid Holdings Inc. entered into an Underwriting Agreement with certain stockholders and underwriters for the sale of 10,000,000 shares of common stock at $3.50 per share, closing on June 26, 2025. The company did not sell any securities in this offering and will not receive proceeds from the sale. Additionally, on June 23, 2025, Torrid Holdings agreed to repurchase $20 million of its common stock from Sycamore Partners Torrid, L.L.C., which was completed on June 26, 2025, with the shares held as treasury stock.

Torrid Holdings Announces $20M Stock Repurchase Agreement

On June 23, 2025, Torrid Holdings Inc. announced a $20 million stock repurchase agreement with Sycamore Partners Torrid, L.L.C. The transaction, approved by the board, aims to purchase shares at the offering price, with the repurchased shares held as treasury stock. Additionally, Torrid filed a preliminary prospectus supplement for a public offering of common stock on June 24, 2025. The company is also implementing a retail optimization strategy, planning to close up to 180 stores by the end of fiscal year 2025 to enhance customer experience and improve financial efficiency. This move is expected to increase profitability and support long-term growth.

Torrid Holdings Elects New Board Members at Annual Meeting

On June 4, 2025, Torrid Holdings Inc. held its annual meeting of stockholders. During the meeting, Lisa M. Harper and Stefan L. Kaluzny were elected to the Board of Directors as Class I Directors until 2028. Additionally, stockholders approved the compensation for the company’s named executive officers and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending January 31, 2026.