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Torrid Holdings, Inc. (CURV)
:CURV
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Torrid Holdings
(NYSE:CURV)
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Rating:41Neutral
Price Target:
$1.50
▲(0.00% Upside)
Torrid Holdings' overall stock score is primarily impacted by its poor financial performance, characterized by declining revenue, high leverage, and weak cash flow. The technical analysis further indicates bearish momentum, while the valuation suggests the stock is overvalued. Despite some positive strategic initiatives, these factors collectively point to significant risks and challenges for the company.
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 (CURV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$148.75M
Dividend YieldN/A
Average Volume (3M)625.52K
Price to Earnings (P/E)47.1
Beta (1Y)0.75
Revenue Growth-5.76%
EPS Growth-75.71%
CountryUS
Employees1,810
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.02
Shares Outstanding99,165,955
10 Day Avg. Volume546,718
30 Day Avg. Volume625,524
Financial Highlights & Ratios
PEG Ratio1.00
Price to Book (P/B)-3.86
Price to Sales (P/S)0.67
P/FCF Ratio11.72
Enterprise Value/Market Cap4.51
Enterprise Value/Revenue0.63
Enterprise Value/Gross Profit1.75
Enterprise Value/Ebitda5.50
Forecast
1Y Price Target
$3.03Price Target Upside102.00% Upside
Rating ConsensusHold
Number of Analyst Covering6
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 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 Earnings Call Summary
Earnings Call Date:Aug 02, 2025
(Q2-2025)
| Next Earnings Date:Dec 04, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strategic initiatives in sub-brand expansion, store optimization, and digital sales growth, contributing positively to the company's future outlook. However, the current period faced challenges with declining comparable sales, gross margin pressures, and tariff-related headwinds. The strategic marketing investments and digital focus are expected to mitigate some of these issues and drive long-term growth.Q2-2025 Updates
Positive Updates
Strategic Initiatives and Sub-Brand Expansion
Torrid's new sub-brands are resonating with customers and are expected to represent 25% to 30% of the assortment next year, supporting adjusted EBITDA margin expansion in 2026.
Store Optimization and Cost Savings
The execution of the store optimization plan is on track with up to 180 store closures expected by year-end, reallocating resources to higher return channels and leading to meaningful cost savings in fiscal 2026.
Digital Sales Growth
Digital sales are approaching 70% of total demand, with a strategy in place to capitalize on this shift and strengthen customer relationships.
Marketing and Customer Engagement
Increased investment in digital marketing and influencer-based campaigns, with a significant event-based activation in key metropolitan areas creating millions of impressions.
Negative Updates
Decline in Comparable Sales
Comparable sales declined 6.9% due to restructuring, promotional activity, and softer holiday peaks over Memorial Day and 4th of July.
Gross Margin Decline
Gross margin was 35.6% compared to 38.7% a year ago, impacted by increased promotional activity and tariff costs.
Challenges in Apparel Categories
Softness in graphic tees and overpenetration of crop tops led to weaker performance in the tops category.
Tariff and Cost Headwinds
Anticipated $15 million tariff impact for fiscal 2025 with mitigation of 80% of that cost, leaving $10 million in unmitigated headwinds.
Company Guidance
During the second quarter fiscal 2025 earnings call, Torrid Holdings provided several key metrics and guidance for the coming years. The company reported net sales of $263 million and an EBITDA of $21.5 million, with comparable sales down by 6.9%. Looking ahead, Torrid plans to close up to 180 stores in fiscal 2025, aiming for cost savings and a substantial increase in free cash flow by 2026. This move is expected to result in a 150 to 250 basis points expansion in adjusted EBITDA margins. The company is investing an additional $5 million in digital marketing, raising marketing spend to approximately 6% of net sales, to drive brand awareness and customer acquisition. Torrid's sub-brands are expected to represent 25% to 30% of the assortment by next year, supporting margin expansion due to their higher margin profile. The company has also set a full-year net sales target between $1.015 billion and $1.030 billion, with adjusted EBITDA expected to range from $80 million to $90 million, incorporating recent tariff impacts and marketing investments. Additionally, Torrid plans to utilize free cash flow to reduce debt and repurchase shares, further strengthening its financial position for long-term growth.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 | 92.05M | 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 | 435.55M | 463.54M | 311.97M | 546.33M | 599.17M | 502.37M |
| 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
Negative
1.50
Price Trends
1.88
Negative
2.69
Negative
4.25
Negative
Market Momentum
-0.13
Negative
35.21
Neutral
21.33
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 1.5 is below the 20-day moving average (MA) of 1.62, below the 50-day MA of 1.88, and below the 200-day MA of 4.25, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 35.21 is Neutral, neither overbought nor oversold. The STOCH value of 21.33 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $349.25M | ― | 0.19% | ― | 1.64% | ― | |
63 Neutral | $232.98M | 6.41 | 34.74% | 1.98% | -2.37% | -16.40% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $297.93M | -17.50 | -13.32% | ― | 3.32% | 25.71% | |
50 Neutral | $318.47M | ― | -4.81% | ― | 2.66% | -4772.54% | |
48 Neutral | $56.99M | ― | -43.51% | ― | -11.10% | -10.31% | |
41 Neutral | $148.75M | 47.12 | ― | ― | -5.76% | -75.71% |
* Consumer Cyclical Sector Average
CURV
Torrid Holdings
1.47
-2.20
-59.95%
CTRN
Citi Trends
34.92
15.89
83.50%
GCO
Genesco
29.06
1.66
6.06%
TLYS
Tilly's
1.77
-2.22
-55.64%
ZUMZ
Zumiez
21.62
0.29
1.36%
JILL
JJill
15.68
-8.34
-34.72%
Torrid Holdings Corporate Events
Private Placements and Financing
Torrid Holdings Extends Credit Facility Maturity Date
Neutral
Aug 4, 2025
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.
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.