Torrid Holdings (CURV) Stock Forecast & Price Target

Torrid Holdings Inc is enhancing its brand visibility by increasing annual marketing spend to approximately 6% of revenue, aiming to expand its customer base and improve retention rates despite the planned closure of 180 stores. The company anticipates that its sub-brands will significantly impact overall performance, with expected penetration of 25%-30% of total assortment by FY26, attributed to limited promotions and a shift towards higher full-priced sell-throughs. Additionally, the adjusted EBITDA margin is projected to rise to 7.7%, demonstrating a positive trend in operating margins while the company benefits from strong consumer resonance with its sub-brands and effective cost-saving strategies.

Torrid Holdings Inc. reported a year-over-year revenue decline of 7.7%, totaling $262.8 million, which is slightly above consensus estimates but indicative of ongoing financial challenges. The company also expects revenue to decrease by approximately 7%-8% for the fiscal year 2025, reflecting a continuing negative trend in performance. Factors such as higher tariff rates, increased marketing expenses, and persistent macroeconomic uncertainty have led the company to lower its annual outlook and guide for Q3 results below market expectations.