Torrid Holdings (CURV) Stock Forecast & Price Target

Torrid Holdings Inc. is experiencing a positive outlook driven by its strategic increase in annual marketing spend to approximately 6% of revenue, which is expected to enhance brand awareness and customer engagement, despite planned store closures. The company reported a 20.4% year-over-year increase in marketing expenditures in the third quarter, coupled with a rise in adjusted EBITDA margin to 7.7%, highlighting operational efficiency and growth potential. Furthermore, the strong performance of Torrid's sub-brands, with anticipated revenue growth to around $80 million and increasing product penetration, suggests a continued positive trajectory for margins and full-price sell-throughs.

Torrid Holdings Inc experienced a significant decline in its operating margin, contracting 260 basis points year-over-year to just 0.1%, which fell short of both internal projections and consensus estimates. Revenue also suffered a decrease of 7.7% year-over-year, totaling $262.8 million, indicating ongoing challenges in sales performance amid heightened operational costs and decreased efficiency. Additionally, the company lowered its outlook for the year, citing rising tariff rates, increased marketing expenditures, and pervasive macroeconomic uncertainty contributing to a negative financial trajectory.