Torrid Holdings (CURV) AI Stock Analysis

• Market Cap: $126.97M
• Dividend Yield: N/A
• Average Volume (3M): 372.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• Revenue Growth: -7.33%
• EPS Growth: -114.80%
• Country: US
• Employees: 1,810
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -0.06
• Shares Outstanding: 99,196,945
• 10 Day Avg. Volume: 377,027
• 30 Day Avg. Volume: 372,042
• 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: 4.23
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 1.45
• Enterprise Value/Ebitda: 5.21
• 1Y Price Target: $1.44
• Price Target Upside: 12.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $1.00 ▼(-21.88% Downside)

The overall stock score of 45 reflects significant financial challenges, including declining revenue, high leverage, and negative equity, which are the most impactful factors. Technical analysis indicates a bearish trend, and the stock appears overvalued based on its P/E ratio. While there are some positive signs from sub-brand momentum and cost reductions, these are overshadowed by the broader financial and operational difficulties.

Positive Factors

Niche market and multi-channel presence

Torrid’s focused positioning in plus-size women's apparel and a combined e-commerce plus physical store footprint create durable demand and distribution flexibility. This niche brand recognition supports repeat purchases, targeted merchandising, and resilience versus undifferentiated mass apparel competitors over months.

Sub-brand product momentum

Clear sub-brand winners demonstrate product differentiation and the ability to iterate successful assortments. Sustainable sub-brand momentum helps increase customer engagement, supports higher full-price sell-through, and enables portfolio expansion with lower customer acquisition costs over several quarters.

Store optimization reduced costs

Realized $18M+ cost saves from store closures is a structural reduction in fixed expenses that lowers the breakeven point. Persisting through 2026, this improves EBITDA margin potential and cash flow generation, supporting deleveraging and providing runway for reinvesting in higher-return channels.

Negative Factors

Negative equity and high leverage

Negative equity and heavy leverage materially weaken financial flexibility, raise refinancing and covenant risks, and increase cost of capital. Over a multi-quarter horizon this constrains strategic choices, limits investments, and heightens vulnerability to sales volatility or higher interest rates.

Declining revenue and margin pressure

Sustained revenue declines and eroding gross and net margins reflect merchandising missteps and heavier promotions. Structural top-line weakness undermines operating leverage and makes margin recovery difficult without clear product fixes or improved full-price sell-through over the next several quarters.

Weak operating cash flow and negative FCF

Falling operating cash flow and negative free cash flow indicate persistent liquidity pressure and reduced internal funding for inventory, marketing, or capex. Over months this elevates reliance on external financing, complicates deleveraging, and limits capacity to execute growth or turnaround initiatives.

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 generates revenue through the sale of its merchandise both online and in-store. The primary revenue stream comes from direct retail sales of its apparel and accessories, which are marketed toward plus-size women. Additionally, Torrid benefits from a robust e-commerce platform that allows for wider reach and accessibility. Seasonal promotions, exclusive collections, and loyalty programs also play a significant role in driving sales. The company may engage in partnerships with influencers and other brands to expand its market presence and enhance brand visibility. Furthermore, Torrid's commitment to customer engagement through social media and community initiatives helps foster a loyal customer base, contributing positively to its overall earnings.

Torrid Holdings Financial Statement Overview

Summary

Torrid Holdings faces significant financial challenges, including declining revenue and profitability, high leverage, and negative equity. The company's cash flow position is weak, although there are signs of improvement in free cash flow growth. Overall, the financial health of the company is concerning, with risks associated with its high debt levels and negative profitability metrics.

Income Statement

Torrid Holdings has experienced declining revenue growth, with a negative growth rate in the TTM period. The gross profit margin has decreased slightly over time, indicating pressure on profitability. The net profit margin turned negative in the TTM period, reflecting challenges in maintaining profitability. EBIT and EBITDA margins have also declined, highlighting operational inefficiencies.

Balance Sheet

The company has a negative stockholders' equity, leading to a negative debt-to-equity ratio, which is a significant risk factor. Return on equity is negative, indicating that the company is not generating sufficient returns on its equity base. The equity ratio is also negative, reflecting financial instability and high leverage.

Cash Flow

Operating cash flow has decreased significantly in the TTM period, and free cash flow is negative, indicating liquidity challenges. However, the free cash flow growth rate has improved, suggesting some improvement in cash management. The operating cash flow to net income ratio is low, indicating inefficiencies in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04B	1.10B	1.15B	1.29B	1.28B	973.51M
Gross Profit	369.70M	413.47M	405.98M	459.54M	518.97M	330.30M
EBITDA	103.10M	57.21M	90.64M	181.06M	123.78M	131.76M
Net Income	-1.91M	16.32M	11.62M	50.21M	-29.94M	24.53M
Balance Sheet
Total Assets	402.94M	488.44M	476.95M	527.26M	578.50M	648.21M
Cash, Cash Equivalents and Short-Term Investments	17.21M	48.52M	11.73M	13.57M	29.02M	122.95M
Total Debt	156.06M	466.63M	511.28M	547.43M	595.18M	503.79M
Total Liabilities	609.45M	679.53M	688.66M	757.49M	836.82M	711.38M
Stockholders Equity	-206.51M	-191.09M	-211.72M	-230.22M	-258.32M	-63.17M
Cash Flow
Free Cash Flow	-2.30M	63.00M	16.77M	29.94M	103.67M	140.25M
Operating Cash Flow	4.90M	77.39M	42.77M	53.31M	121.22M	151.82M
Investing Cash Flow	-7.20M	-14.39M	-26.00M	-23.37M	-17.55M	-11.57M
Financing Cash Flow	-23.16M	-24.50M	-18.52M	-45.12M	-197.81M	-45.92M

Torrid Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.28
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CURV, the sentiment is Positive. The current price of 1.28 is above the 20-day moving average (MA) of 1.08, above the 50-day MA of 1.15, and below the 200-day MA of 2.85, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 62.26 is Neutral, neither overbought nor oversold. The STOCH value of 87.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CURV.

Torrid Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JILL	65 Neutral	$239.88M	7.24	28.98%	2.25%	-2.67%	-22.93%
ZUMZ	62 Neutral	$424.93M	51.84	2.79%	―	2.81%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GCO	59 Neutral	$384.65M	-193.49	-0.13%	―	2.76%	96.01%
CTRN	53 Neutral	$400.32M	-24.04	-13.76%	―	5.77%	35.12%
TLYS	48 Neutral	$51.50M	-1.49	-34.77%	―	-8.31%	36.10%
CURV	45 Neutral	$126.97M	-57.66	―	―	-7.33%	-114.80%