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Torrid Holdings (CURV)
NYSE:CURV
US Market

Torrid Holdings (CURV) AI Stock Analysis

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Torrid Holdings

(NYSE:CURV)

Rating:49Neutral
Price Target:
$3.00
▲(11.11%Upside)
The stock score is primarily impacted by financial instability, high leverage, and declining revenue, offset slightly by positive cash flow and strategic initiatives like store closures and digital focus. Technical indicators suggest continued bearish momentum.
Positive Factors
Business Strategy
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 Management
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
Economic Risks
Tariffs and macro headwinds create uncertainty, as they are leading to strategic price increases against a backdrop of a selective and promotion-seeking consumer.
Growth Challenges
Growth has sputtered in recent years with three consecutive years of negative growth and margins sitting below historical levels.

Torrid Holdings (CURV) vs. SPDR S&P 500 ETF (SPY)

Torrid Holdings Business Overview & Revenue Model

Company DescriptionTorrid 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 MoneyTorrid 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 Earnings Call Summary

Earnings Call Date:Jun 05, 2025
(Q1-2025)
|
% Change Since: -45.78%|
Next Earnings Date:Sep 03, 2025
Earnings Call Sentiment Neutral
The earnings call highlights strong growth in digital channels, success with sub-brands, and effective financial management. However, challenges such as declining store sales, gross margin reduction, and the impact of tariffs and paused footwear business present concerns.
Q1-2025 Updates
Positive Updates
Sub-brands Success
Sub-brands like Festi, Belle Isle, Nightfall, and Retro Chic have exceeded expectations by 2 to 6 times. These brands are attracting new, younger customers and reactivating lapsed ones, with a high attachment rate of 90% to core Torrid products.
Digital Channel Growth
Online sales demand is approaching 70% of total sales, expected to reach mid-70% by 2026. The digital channel is outperforming physical stores, with significant growth in new customer acquisition and retention.
Store Optimization Plan
Plan to close approximately 180 stores in 2025 with minimal impact on net sales. Strategy aims to optimize the retail footprint, enhance customer experience, and improve EBITDA margins by 150 to 250 basis points in 2026.
Financial Health
Ended the quarter with $23.7 million in cash and $141 million in total liquidity. Reduced total debt by $16.2 million year-over-year to $284.5 million.
Strong Marketing Performance
Successful marketing strategies, including a Coachella activation, led to increased engagement and new customer acquisition. The mobile app reached a new revenue high.
Negative Updates
Decline in Comparable Store Sales
Comparable store sales declined by 3.5% due to continued pressure on physical retail locations, even as digital channels showed strength.
Gross Margin Decline
Gross margin decreased by 320 basis points to 38.1%, primarily due to planned promotional activities aimed at improving conversion rates.
Pause in Footwear Business
Decision to pause the footwear business due to sourcing challenges from China, resulting in a revenue impact of $40 million to $45 million for the year.
Tariff Impact
Expected net impact of tariffs to be approximately $20 million for the remainder of the year.
Company Guidance
During the first quarter of fiscal 2025, Torrid Holdings Inc. delivered net sales of $266 million and adjusted EBITDA of $27.1 million, aligning with their expectations. The company saw a 3.5% decline in comparable store sales but noted strong performance in their digital channel, which is approaching 70% of total sales. Torrid plans to close approximately 180 stores by the end of the year, aiming to optimize their store footprint and capitalize on the growing online demand. The company is expanding its successful sub-brands, planning to increase their delivery frequency to 12 times annually, and aims to grow their penetration to 30% of the portfolio by 2026. Torrid reported a net income of $5.9 million and is focused on strategic initiatives to enhance profitability and customer experience, including potential EBITDA margin expansion of 150 to 250 basis points in fiscal 2026 due to store closures and marketing investments.

Torrid Holdings Financial Statement Overview

Summary
Torrid Holdings faces financial challenges with declining revenue and profitability, high leverage, and negative equity. Despite consistent positive operating cash flow, high debt levels and shrinking margins weaken overall financial health.
Income Statement
55
Neutral
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
30
Negative
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
60
Neutral
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.09B1.10B1.15B1.29B1.28B973.51M
Gross Profit399.45M413.47M405.98M459.54M518.97M330.30M
EBITDA124.66M57.21M92.05M181.06M123.78M131.76M
Net Income10.09M16.32M11.62M50.21M-29.94M24.53M
Balance Sheet
Total Assets451.38M488.44M476.95M527.26M578.50M648.21M
Cash, Cash Equivalents and Short-Term Investments23.69M48.52M11.73M13.57M29.02M122.95M
Total Debt448.58M466.63M311.97M546.33M599.17M502.37M
Total Liabilities635.20M679.53M688.66M757.49M836.82M711.38M
Stockholders Equity-183.82M-191.09M-211.72M-230.22M-258.32M-63.17M
Cash Flow
Free Cash Flow21.82M63.00M16.77M29.94M103.67M140.25M
Operating Cash Flow31.75M77.39M42.77M53.31M121.22M151.82M
Investing Cash Flow-9.93M-14.39M-26.00M-23.37M-17.55M-11.57M
Financing Cash Flow-17.32M-24.50M-18.52M-45.12M-197.81M-45.92M

Torrid Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.70
Price Trends
50DMA
4.97
Negative
100DMA
5.30
Negative
200DMA
4.96
Negative
Market Momentum
MACD
-0.68
Positive
RSI
21.40
Positive
STOCH
7.60
Positive
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 2.7 is below the 20-day moving average (MA) of 4.08, below the 50-day MA of 4.97, and below the 200-day MA of 4.96, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 21.40 is Positive, neither overbought nor oversold. The STOCH value of 7.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CURV.

Torrid Holdings Risk Analysis

Torrid Holdings disclosed 43 risk factors in its most recent earnings report. Torrid Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Torrid Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$567.76M8.6910.52%2.89%-1.24%-11.02%
GEGES
68
Neutral
$685.06M14.292.61%9.11%9.02%-93.19%
63
Neutral
$16.67B10.96-6.97%3.00%1.72%-24.21%
YSYSG
56
Neutral
$933.26M-16.81%0.23%26.92%
LELE
54
Neutral
$349.22M82.561.90%-7.58%
51
Neutral
$520.64M-27.37%-8.48%55.77%
49
Neutral
$293.15M28.60
-4.21%-16.35%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CURV
Torrid Holdings
2.70
-5.06
-65.21%
GES
Guess?
13.49
-6.17
-31.38%
SCVL
Shoe Carnival
20.84
-15.11
-42.03%
LE
Lands' End
11.36
-3.17
-21.82%
SFIX
Stitch Fix
3.99
-0.34
-7.85%
YSG
Yatsen Holding
9.77
6.19
172.91%

Torrid Holdings Corporate Events

Private Placements and FinancingStock Buyback
Torrid Holdings Completes Stock Repurchase and Underwriting Agreement
Neutral
Jun 26, 2025

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.

The most recent analyst rating on (CURV) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Torrid Holdings stock, see the CURV Stock Forecast page.

Stock BuybackBusiness Operations and StrategyRegulatory Filings and Compliance
Torrid Holdings Announces $20M Stock Repurchase Agreement
Positive
Jun 24, 2025

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.

The most recent analyst rating on (CURV) stock is a Sell with a $4.00 price target. To see the full list of analyst forecasts on Torrid Holdings stock, see the CURV Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Torrid Holdings Elects New Board Members at Annual Meeting
Neutral
Jun 5, 2025

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.

The most recent analyst rating on (CURV) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Torrid Holdings stock, see the CURV Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 02, 2025