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Torrid Holdings (CURV)
NYSE:CURV
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Torrid Holdings
(NYSE:CURV)
61Neutral
Positive Factors
Financial confidence
Management's guidance for net sales and adjusted EBITDA shows confidence in the company's financial performance.
Product innovation
The company is on track to launch multiple capsules with distinct fashion aesthetics to attract a broader range of customers.
Sales turnaround strategy
Positive customer response to newness and continued improvement in regular price comp indicate a successful sales turnaround strategy.
Negative Factors
Product resonance risk
The largest risk is a potential delay in recovery or failure of new products to resonate, which could be exacerbated by a worsening demand environment.
Turnaround challenges
Apparel retail turnarounds are nearly unprecedented historically and likely prove even more difficult in a challenged macro environment.
Valuation risk
FY profitability guidance could prove optimistic, reinforcing apprehension of potential valuation de-rating.
Torrid Holdings (CURV) vs. S&P 500 (SPY)
Market Cap
$586.64M
Dividend YieldN/A
Average Volume (3M)314.13K
Price to Earnings (P/E)36.3
Beta (1Y)1.03
Revenue Growth-3.27%
EPS Growth27.87%
CountryUS
Employees7,600
SectorConsumer Cyclical
Sector Strength51
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)0.15
Shares Outstanding104,756,570
10 Day Avg. Volume326,830
30 Day Avg. Volume314,132
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)N/A
Price to Sales (P/S)0.54
Price to Cash Flow (P/CF)-48.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.58Price Target Upside2.57% Upside
Rating ConsensusHold
Number of Analyst Covering5
Torrid Holdings Business Overview & Revenue Model
Company DescriptionTorrid Holdings (CURV) is a leading retailer in the fashion industry, specializing in apparel, accessories, and intimate products for women who wear sizes 10 to 30. The company focuses on providing trendy and comfortable clothing options that cater to the plus-size market, offering a wide range of styles from casual wear to formal attire. Torrid operates primarily through a direct-to-consumer model, with a significant presence both online and in physical retail locations across the United States, Canada, and Puerto Rico.
How the Company Makes MoneyTorrid Holdings generates revenue primarily through the sale of its apparel, accessories, and intimate products. The company's revenue model is centered on its retail operations, which include both its e-commerce platform and a network of brick-and-mortar stores. Torrid's key revenue streams involve direct sales to consumers, leveraging its brand strength and customer loyalty in the plus-size market. Additionally, the company benefits from strategic marketing initiatives and customer engagement programs that drive repeat purchases. Torrid's ability to maintain a strong connection with its target audience, coupled with its focus on providing fashionable and inclusive clothing options, contributes significantly to its earnings.
Torrid Holdings Financial Statement Overview
Summary
The company faces challenges with declining revenues, negative equity, and high debt levels. While profitability margins show some improvement, overall financial health is strained. Positive cash flow trends highlight operational efficiency, but financial leverage and equity deficits remain concerns.Income Statement
The income statement shows a declining revenue trend from $1.29 billion in 2023 to $1.12 billion in TTM (Trailing-Twelve-Months) 2024. Gross profit margins decreased from 35.7% in 2022 to 37.5% in TTM 2024, indicating a slight improvement. The net profit margin improved to 1.36% in TTM 2024 from a negative margin in 2022. However, revenue growth is negative, and overall profitability remains a concern.55
Neutral
Balance Sheet
The balance sheet reveals negative stockholders' equity, worsening from -$63.17 million in 2021 to -$189.29 million in TTM 2024, indicating financial instability. The debt-to-equity ratio is not meaningful due to negative equity, and high debt levels pose a risk. ROE is negative due to negative equity, underscoring profitability issues. The equity ratio is also negative, reflecting leverage concerns.45
Neutral
Cash Flow
The cash flow statement shows positive operating cash flow of $74.41 million in TTM 2024, up from $42.77 million in 2023, highlighting operational efficiency improvements. Free cash flow increased significantly from $16.77 million in 2023 to $51.02 million in TTM 2024. However, the free cash flow to net income ratio indicates reliance on operational cash flow to cover financial obligations, with potential sustainability issues.60
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.12B | 1.15B | 1.29B | 1.28B | 973.51M | 1.04B | Gross Profit |
| 420.39M | 405.98M | 459.54M | 518.97M | 330.30M | 396.07M | EBIT |
| 57.77M | 57.15M | 101.63M | 45.38M | 56.82M | 76.99M | EBITDA |
| 119.53M | 92.05M | 181.06M | 123.78M | 131.76M | 148.79M | Net Income Common Stockholders |
| 15.24M | 11.62M | 50.21M | -29.94M | 24.53M | 41.87M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 9.18M | 11.73M | 13.57M | 29.02M | 122.95M | 28.80M | Total Assets |
| 317.26M | 476.95M | 527.26M | 578.50M | 648.21M | 635.99M | Total Debt |
| 15.48M | 311.97M | 546.33M | 599.17M | 502.37M | 583.69M | Net Debt |
| 6.30M | 300.23M | 532.76M | 570.14M | 379.42M | 554.88M | Total Liabilities |
| 130.73M | 688.66M | 757.49M | 836.82M | 711.38M | 731.49M | Stockholders Equity |
| 126.42M | -211.72M | -230.22M | -258.32M | -63.17M | -95.50M |
| Cash Flow | Free Cash Flow | ||||
| 51.02M | 16.77M | 29.94M | 103.67M | 140.25M | 72.76M | Operating Cash Flow |
| 74.41M | 42.77M | 53.31M | 121.22M | 151.82M | 99.09M | Investing Cash Flow |
| -23.39M | -26.00M | -23.37M | -17.55M | -11.57M | -56.12M | Financing Cash Flow |
| -22.55M | -18.52M | -45.12M | -197.81M | -45.92M | -23.34M |
Torrid Holdings Technical Analysis
Negative
5.44
Price Trends
6.07
Negative
5.24
Positive
5.68
Negative
Market Momentum
-0.12
Negative
44.35
Neutral
40.16
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 5.44 is below the 20-day moving average (MA) of 5.65, below the 50-day MA of 6.07, and below the 200-day MA of 5.68, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 44.35 is Neutral, neither overbought nor oversold. The STOCH value of 40.16 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
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.91B | 12.33 | 17.56% | ― | 7.71% | 40.01% | |
74 Outperform | $3.81B | 7.07 | 47.77% | ― | 15.60% | 71.45% | |
67 Neutral | $2.35B | 7.58 | 18.80% | 4.08% | 1.27% | 96.32% | |
61 Neutral | $586.64M | 36.34 | ― | -3.27% | 27.87% | ||
60 Neutral | $6.05B | 275.89 | 7.53% | 0.13% | ― | ― | |
59 Neutral | $12.68B | 11.14 | 0.97% | 3.72% | 1.33% | -21.21% |
* Consumer Cyclical Sector Average
Performance Comparison
CURV
Torrid Holdings
5.44
0.56
11.48%
ANF
Abercrombie Fitch
75.72
-49.61
-39.58%
AEO
American Eagle
11.98
-13.17
-52.37%
URBN
Urban Outfitters
52.61
9.19
21.17%
LB
LandBridge Company LLC Class A
78.51
55.62
242.99%
Torrid Holdings Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: -1.63% | Next Earnings Date: Jun 4, 2025
Earnings Call Sentiment Neutral
Torrid Holdings showed resilience and strategic growth through the successful launch of new sub-brands, improved financial positioning, and strategic store optimization. However, challenges in the macro environment and a decline in net sales present ongoing concerns. Despite these challenges, the positive developments in product offerings and financial health suggest cautious optimism for the future.Highlights
Successful Launch of Sub-Brands
Three new sub-brands launched successfully in Q4, driving excitement and engagement among new and existing customers. These sub-brands are attracting younger customers, with new buyers averaging in their mid-30s.
Improved Financial Position
Torrid ended fiscal 2024 with $48.5 million in cash, an increase of $36.8 million year-over-year, and total liquidity of $158 million. Operating cash flow increased by 2x to $77.4 million from the previous year.
Positive Response to Product Assortments
Positive customer response to holiday and early spring lines, with newness across the product portfolio leading to improved regular price comp trends, which increased by 1.6%.
Strategic Store Optimization
Successfully closed 35 stores in fiscal 2024, with plans to close an additional 40 to 50 stores in fiscal 2025, optimizing retail footprint and reducing fixed costs.
Lowlights
Challenging Macro Environment
Uncertainty in the consumer and macro environment led to choppy business performance in early Q4, driven by macro factors and adverse weather in February.
Decline in Net Sales
Net sales for Q4 totaled $275.6 million, a decrease from $293.5 million last year, with a comparable sales decline of 0.8%.
Impact of Store Closures
Store closures in fiscal 2024 impacted sales, and further closures planned for fiscal 2025 may continue to affect revenues.
Company Guidance
During the Torrid Holdings Fourth Quarter Fiscal 2024 Earnings Conference Call, several key financial metrics and strategic initiatives were discussed. Torrid achieved sales of $275.6 million and an adjusted EBITDA of $16.7 million for the quarter. The company ended fiscal 2024 with $48.5 million in cash, marking an increase of $36.8 million from the previous year. Inventory levels rose by 4% due to higher in-transit levels, but showed an 18% decrease over two years. For fiscal 2025, Torrid aims to close 40 to 50 underperforming stores while opening 4 to 8 new locations, focusing on outdoor shopping centers. The fiscal 2025 guidance projects sales between $1.080 billion and $1.100 billion and adjusted EBITDA between $100 million and $110 million. The company aims to capitalize on its new sub-brands, which are expected to account for 7% to 10% of total receipt investment, and plans to continue optimizing its product assortment, customer growth, and store fleet.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.