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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on CURV

Torrid Holdings' recent performance was driven by the company's efforts to revitalize sales growth through significant new product introductions. Management aims to accelerate comparable sales growth (CSG) in 4Q24, particularly during the favorable holiday shopping season. The company's ability to execute on this plan will be crucial in addressing its 9th straight quarter of negative CSG, as seen in 3Q24. Additionally, Torrid's new product introductions may help drive revenue growth, but the challenge lies in achieving consensus estimates, as seen in 3Q24.

1.c. Company Highlights

2. Torrid Holdings' Q3 Results: Navigating Challenges Amidst Category Missteps

Torrid Holdings reported a decline in its third-quarter fiscal 2025 sales to $235.2 million, down 8.3% year-over-year, with comparable sales negatively impacted by a tariff-related pause in the shoe category. The company's adjusted EBITDA was $9.8 million, representing a 4.2% margin, significantly lower than the $19.6 million and 7.4% margin reported a year ago. The earnings per share (EPS) came out at -$0.0648, missing estimates of -$0.01. The gross margin stood at 34.9%, down from 36.1% in the prior year, due to higher promotions and deleverage on the lower sales base. SG&A expenses, however, decreased by $8.6 million year-over-year.

Publication Date: Dec -04

📋 Highlights
  • Q3 Sales Decline: Revenue fell to $235.2M (-8.3% YoY) due to tariff-related shoe category pause and tops/jackets missteps.
  • Adjusted EBITDA Drop: Declined to $9.8M (4.2% margin) vs. $19.6M (7.4% margin) in 2024, driven by lower sales and higher promotions.
  • Footwear Strategy: Reintroduced curated footwear, aiming to restore $40M in sales by 2026 with improved profitability.
  • Store Optimization: Closed 15 stores in Q3 (74 total YTD) to drive fixed cost reduction and EBITDA margin expansion in 2026.
  • Full-Year Outlook: Expects net sales of $995M–$1.002B and adjusted EBITDA of $59M–$62M, with 2026 margin expansion anticipated.

Category Performance and Strategic Adjustments

The quarter's performance was largely impacted by missteps in the tops and jackets categories, particularly in fashion-forward designs at the expense of core assortments. In response, the company has taken decisive action, including enhancing guardrails in the merchandising process and building a more robust assortment planning function. As Lisa Harper noted, they're embedding an opening price point strategy into their architecture, with around 30% of sales and assortment associated with these categories, aiming to strike a better balance in their product offerings.

Footwear and Sub-Brand Strategy

The company has reintroduced a carefully curated footwear assortment and expects to scale it back to historical sales levels of approximately $40 million in 2026 with improved profitability. The sub-brand strategy is on track to deliver approximately $80 million in sales this year. The denim, non-denim, dresses, and intimates categories met expectations, generating positive comparable growth, while the pause in the shoe category drove approximately 400 basis points of the overall decline in comparable sales.

Outlook and Valuation

For the full year, Torrid expects net sales in the range of $995 million to $1.002 billion and adjusted EBITDA in the range of $59 million to $62 million. The company expects substantial adjusted EBITDA margin expansion in fiscal 2026. With a current P/S Ratio of 0.13 and EV/EBITDA of 2.88, the stock appears to be pricing in significant challenges. Analysts estimate next year's revenue growth at -6.5%, indicating a continued challenging environment for the company. The ROE stands at 0.97%, and the Net Debt / EBITDA ratio is 1.45, indicating a leveraged position that could be challenging to navigate in the current operational context.

3. NewsRoom

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These Analysts Cut Their Forecasts On Torrid Holdings Following Q3 Loss

Dec -04

Source: benzinga.com

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Why Are Torrid Holdings (CURV) Shares Falling After Hours?

Dec -04

Source: feeds.benzinga.com

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Torrid Holdings Inc. (CURV) Q3 2026 Earnings Call Transcript

Dec -04

Source: seekingalpha.com

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Torrid Holdings (CURV) Reports Q3 Loss, Misses Revenue Estimates

Dec -03

Source: zacks.com

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Financial Review: Torrid (NYSE:CURV) versus Capri (NYSE:CPRI)

Dec -03

Source: defenseworld.net

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Shares of Beyond Meat soar nearly 300% in torrid meme-stock rally. Here's what's going on.

Oct -21

Source: marketwatch.com

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Torrid Holdings Has Come Back To More Sensitive Valuations But Is Too Risky

Sep -05

Source: seekingalpha.com

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Torrid Holdings Inc. (CURV) Q2 2025 Earnings Call Transcript

Sep -05

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.33%)

6. Segments

Apparel

Expected Growth: 10.33%

Torrid Holdings Inc.'s 10.33% growth in Apparel segment is driven by increasing demand for plus-size clothing, effective marketing strategies targeting the underserved demographic, and expansion of e-commerce platform. Additionally, the company's focus on trendy and fashionable designs, quality products, and strong brand loyalty also contribute to the growth.

Non-apparel

Expected Growth: 10.33%

Torrid Holdings Inc.'s non-apparel segment growth of 10.33% is driven by increasing demand for plus-size women's accessories, expansion into new product categories, and strategic partnerships. Additionally, the company's focus on body positivity and inclusivity resonates with customers, leading to increased brand loyalty and repeat business.

Other

Expected Growth: 10.27%

Torrid Holdings Inc.'s 10.27% growth in 'Other' segment is driven by increasing demand for plus-size women's clothing, successful marketing campaigns, and expansion into new markets. Additionally, the company's focus on body positivity and inclusivity resonates with customers, leading to higher sales and brand loyalty.

7. Detailed Products

Women's Plus-Size Apparel

Torrid Holdings Inc. offers a wide range of trendy and fashionable clothing for plus-size women, including tops, bottoms, dresses, outerwear, and more.

Accessories

Torrid Holdings Inc. provides a variety of accessories such as jewelry, hats, scarves, belts, and bags to complement their clothing line.

Swimwear

Torrid Holdings Inc. offers a range of swimwear options, including bikinis, tankinis, and one-pieces, designed to flatter and support plus-size figures.

Intimates

Torrid Holdings Inc. provides a selection of intimates, including bras, panties, shapewear, and sleepwear, designed to provide comfort and support.

Beauty and Wellness

Torrid Holdings Inc. offers a range of beauty and wellness products, including skincare, haircare, and fragrances, designed to promote self-care and self-love.

8. Torrid Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Torrid Holdings Inc. faces moderate threat from substitutes, as customers have limited alternatives for plus-size clothing, but online retailers and fast fashion brands offer some substitutes.

Bargaining Power Of Customers

Torrid Holdings Inc. has a low bargaining power of customers, as customers have limited negotiating power due to the niche market and limited alternatives.

Bargaining Power Of Suppliers

Torrid Holdings Inc. has a moderate bargaining power of suppliers, as suppliers have some negotiating power due to the specialized nature of plus-size clothing production.

Threat Of New Entrants

Torrid Holdings Inc. faces a high threat of new entrants, as the plus-size clothing market is growing and attractive to new entrants, and barriers to entry are relatively low.

Intensity Of Rivalry

Torrid Holdings Inc. operates in a highly competitive market with intense rivalry among existing players, including ASOS, Lane Bryant, and Avenue.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 248.04%
Debt Cost 11.92%
Equity Weight -148.04%
Equity Cost 13.49%
WACC 9.59%
Leverage -167.55%

11. Quality Control: Torrid Holdings Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.13$

Current Price

1.13$

Potential

-0.00%

Expected Cash-Flows