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Torrid Holdings, Inc. (CURV)
:CURV
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Torrid Holdings
(NYSE:CURV)
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Rating:45Neutral
Price Target:
$1.50
▲(30.43% Upside)
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
Sub-Brand Momentum
Strong performance in sub-brands like Festi, Nightfall, and Retro indicates successful diversification and potential for sustained growth.
Store Closure Optimization
Optimizing store footprint with closures leads to cost savings and potential EBITDA margin expansion, improving long-term profitability.
Denim and Dresses Performance
Strong performance in denim and dresses suggests product innovation and consumer preference alignment, supporting revenue stability.
Negative Factors
Declining Revenue
Continued revenue decline reflects challenges in market demand and competitive pressures, impacting long-term financial health.
High Leverage
High leverage with negative equity increases financial risk, limiting flexibility and potentially affecting future growth investments.
Merchandising Missteps
Significant merchandising issues in key categories like tops lead to revenue shortfalls, indicating operational inefficiencies and strategic misalignment.
Torrid Holdings (CURV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$114.04M
Dividend YieldN/A
Average Volume (3M)391.09K
Price to Earnings (P/E)―
Beta (1Y)0.49
Revenue Growth-7.33%
EPS Growth-114.80%
CountryUS
Employees1,810
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.06
Shares Outstanding99,165,955
10 Day Avg. Volume316,860
30 Day Avg. Volume391,089
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 Cap4.71
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit1.45
Enterprise Value/Ebitda5.63
Forecast
1Y Price Target
$1.44Price Target Upside25.22% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)>-0.01
Revenue Forecast (FY)$1.02B
Torrid Holdings Business Overview & Revenue Model
Company DescriptionTorrid 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 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:Dec 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 19, 2026
Earnings Call Sentiment Negative
The earnings call revealed significant challenges, particularly in the tops and shoe categories, leading to revenue declines and increased promotions. However, there are positive signs in the successful sub-brand momentum, cost reductions from store closures, and strong performance in denim and dresses. The overall sentiment is mixed but leans toward negative due to the significant revenue misses and anticipated declines.Q3-2025 Updates
Positive Updates
Successful Sub-Brand Momentum
The Festi brand is identified as a clear winner, with Nightfall and Retro performing well. Belle Isle is more of a first-half brand, and the company introduced a successful interactive business.
Store Closure Optimization
Store closures have resulted in over $18 million in cost reductions for the year. This is expected to result in substantial EBITDA margin expansion in 2026 with an improved leverage profile.
Denim and Dresses Performance
Despite challenges in other areas, denim and non-denim dresses have shown successful performance, with innovation in leg shape and wash treatment driving growth.
Negative Updates
Merchandising Missteps in Tops
Tops accounted for about 50% of the revenue miss for the quarter due to a lack of focus on core fabrications. This resulted in increased promotional activity and reduced AUR.
Challenges in Shoe and Jacket Categories
Shoes accounted for about 40% and jackets for 10% of the revenue miss due to tariffs and seasonal importance, respectively.
Mid-Teens Revenue Decline Guidance for Q4
The full-year guidance implies a mid-teens revenue decline in Q4, with no substantive recovery anticipated in tops or shoes for the balance of the year.
Reduced Customer Engagement
Most loyal and engaged customers reduced frequency and purchases, particularly in the tops department, indicating a potential shift in customer engagement.
Company Guidance
During the call, the company identified significant merchandising missteps primarily in the tops category, which accounted for about 50% of the revenue miss for the quarter, with shoes contributing 40% and jackets 10%. To address these issues, the company plans to reintroduce core products and opening price point (OPP) strategies, emphasizing longer tops, tunics, and specific fabrications like brushed waffles and super soft knits. They anticipate improvements in these categories by early next year. Promotional activities increased due to the tops category's performance, but there were no inventory issues reported. The full-year guidance includes a mid-teens revenue decline in Q4, reflecting ongoing challenges in the tops and shoes categories, although some recovery in tops is expected in the next fiscal year. The company is also optimizing its store footprint, having closed up to 180 stores, which is projected to improve their EBITDA margin in 2026 through reduced fixed expenses and improved sales retention.Torrid Holdings Financial Statement Overview
Summary
Torrid Holdings faces significant financial challenges, including 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, indicating potential financial instability.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.45
Neutral
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.30
Negative
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.50
Neutral
| 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 | 95.49M | 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 | 463.54M | 510.55M | 547.43M | 599.17M | 462.96M |
| 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
Negative
1.15
Price Trends
1.39
Negative
1.80
Negative
3.45
Negative
Market Momentum
-0.04
Negative
42.37
Neutral
29.99
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 1.15 is below the 20-day moving average (MA) of 1.22, below the 50-day MA of 1.39, and below the 200-day MA of 3.45, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 29.99 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $525.24M | 63.32 | 2.79% | ― | 1.64% | ― | |
64 Neutral | $246.08M | 7.01 | 34.74% | 1.85% | -2.37% | -16.40% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $380.08M | ― | -13.76% | ― | 5.77% | 35.12% | |
51 Neutral | $382.16M | ― | -0.13% | ― | 2.76% | 96.01% | |
48 Neutral | $53.94M | ― | -34.77% | ― | -8.31% | 36.10% | |
45 Neutral | $114.04M | ― | ― | ― | -7.33% | -114.80% |
* Consumer Cyclical Sector Average
CURV
Torrid Holdings
1.15
-2.87
-71.39%
CTRN
Citi Trends
45.76
21.41
87.93%
GCO
Genesco
22.73
-18.93
-45.44%
TLYS
Tilly's
1.80
-2.21
-55.11%
ZUMZ
Zumiez
30.62
8.92
41.11%
JILL
JJill
16.25
-10.83
-39.99%
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.