Torrid Holdings (CURV) AI Stock Analysis

• Market Cap: $114.04M
• Dividend Yield: N/A
• Average Volume (3M): 440.55K
• Price to Earnings (P/E): 36.9
• Beta (1Y): 0.58
• Revenue Growth: -5.76%
• EPS Growth: -75.71%
• Country: US
• Employees: 1,810
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.02
• Shares Outstanding: 99,165,955
• 10 Day Avg. Volume: 251,066
• 30 Day Avg. Volume: 440,550
• PEG Ratio: 1.00
• Price to Book (P/B): -3.86
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 11.72
• Enterprise Value/Market Cap: 5.88
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 1.75
• Enterprise Value/Ebitda: 5.50
• 1Y Price Target: $3.03
• Price Target Upside: 117.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $1.50 ▲(7.91% Upside)

Torrid Holdings' overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue, profitability margins, and high leverage. The technical analysis indicates a bearish trend, further weighing on the score. Valuation concerns due to a high P/E ratio and lack of dividend yield also contribute to the low score. Strategic initiatives discussed in the earnings call provide some positive outlook but are not enough to offset the current financial and technical challenges.

Positive Factors

Digital Sales Growth

The shift towards digital sales indicates a strong online presence, allowing Torrid to reach a broader audience and reduce reliance on physical stores, which supports long-term growth and operational efficiency.

Sub-Brand Expansion

Expanding sub-brands can enhance product diversity and margins, attracting a wider customer base and supporting sustainable growth by leveraging higher-margin products.

Credit Facility Extension

Extending the credit facility maturity provides financial stability and flexibility, allowing Torrid to manage debt more effectively and focus on strategic growth initiatives.

Negative Factors

Declining Revenue

Declining revenue growth suggests challenges in market demand or competitive positioning, potentially impacting long-term profitability and market share.

High Leverage

Significant leverage increases financial risk, limiting the company's ability to invest in growth opportunities and potentially affecting its long-term solvency.

Gross Margin Decline

A decline in gross margin indicates reduced pricing power or increased costs, which can pressure profitability and hinder the company's ability to invest in growth initiatives.

Torrid Holdings Business Overview & Revenue Model

Company Description

Torrid Holdings (CURV) is a leading specialty retailer that focuses on providing fashionable and trendy apparel, accessories, and intimates for plus-size women. Established to cater to the unique needs and preferences of the curvier demographic, Torrid operates primarily in the women's clothing sector, offering a wide range of products that combine style, comfort, and fit. The company has a strong online presence and operates physical retail locations across the United States, further enhancing its accessibility to customers seeking fashionable plus-size options.

How the Company Makes Money

Torrid generates revenue primarily through the sale of its apparel, accessories, and intimates designed specifically for plus-size women. The company operates a multi-channel sales approach that includes both brick-and-mortar stores and a robust e-commerce platform, allowing it to reach a broad customer base. Key revenue streams include direct sales from store locations, online sales through its website, and potential partnerships with other retailers or brands for co-branded products. Additionally, Torrid may benefit from loyalty programs and promotions that drive repeat purchases. The company's focus on creating a strong brand identity and community around body positivity helps to foster customer loyalty and increase sales over time.

Torrid Holdings Financial Statement Overview

Summary

Torrid Holdings faces significant financial challenges, with declining revenue and profitability margins, high leverage, and negative equity. The company's cash flow position is weak, with declining free cash flow and low cash generation efficiency. These factors indicate potential financial instability and the need for strategic improvements.

Income Statement

Torrid Holdings has experienced a decline in revenue growth, with a negative growth rate of -2.00% in the TTM period. The gross profit margin has decreased to 35.83% from 37.46% in the previous annual report. Net profit margin is low at 0.31%, indicating challenges in converting revenue into profit. EBIT and EBITDA margins have also declined, reflecting reduced operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of -2.17 in the TTM period, indicating significant leverage and financial risk. The negative stockholders' equity suggests potential solvency issues. Return on equity is negative, reflecting poor profitability relative to equity. The equity ratio is also negative, highlighting a weak financial position.

Cash Flow

Free cash flow has declined significantly, with a growth rate of -105.55% in the TTM period, indicating cash flow challenges. The operating cash flow to net income ratio is low at 0.03, suggesting inefficiencies in cash generation. The free cash flow to net income ratio is negative, further emphasizing cash flow difficulties.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.07B	1.10B	1.15B	1.29B	1.28B	973.51M
Gross Profit	382.68M	413.47M	405.98M	459.54M	518.97M	330.30M
EBITDA	121.94M	57.21M	90.64M	181.06M	123.78M	131.76M
Net Income	3.33M	16.32M	11.62M	50.21M	-29.94M	24.53M
Balance Sheet
Total Assets	414.46M	488.44M	476.95M	527.26M	578.50M	648.21M
Cash, Cash Equivalents and Short-Term Investments	21.54M	48.52M	11.73M	13.57M	29.02M	122.95M
Total Debt	469.05M	463.54M	510.55M	547.43M	599.17M	462.96M
Total Liabilities	615.58M	679.53M	688.66M	757.49M	836.82M	711.38M
Stockholders Equity	-201.12M	-191.09M	-211.72M	-230.22M	-258.32M	-63.17M
Cash Flow
Free Cash Flow	-1.21M	63.00M	16.77M	29.94M	103.67M	140.25M
Operating Cash Flow	6.67M	77.39M	42.77M	53.31M	121.22M	151.82M
Investing Cash Flow	-7.88M	-14.39M	-26.00M	-23.37M	-17.55M	-11.57M
Financing Cash Flow	-29.99M	-24.50M	-18.52M	-45.12M	-197.81M	-45.92M

Torrid Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.39
• 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 Neutral. The current price of 1.39 is above the 20-day moving average (MA) of 1.32, below the 50-day MA of 1.57, and below the 200-day MA of 3.84, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 50.20 is Neutral, neither overbought nor oversold. The STOCH value of 36.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CURV.

Torrid Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZUMZ	64 Neutral	$396.08M	―	0.19%	―	1.64%	―
JILL	63 Neutral	$229.48M	6.31	34.74%	2.08%	-2.37%	-16.40%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CTRN	60 Neutral	$336.14M	―	-13.32%	―	3.32%	25.71%
GCO	56 Neutral	$349.88M	―	-4.81%	―	2.66%	-4772.54%
TLYS	45 Neutral	$42.05M	―	-43.51%	―	-11.10%	-10.31%
CURV	44 Neutral	$114.04M	36.86	―	―	-5.76%	-75.71%