Torrid Holdings (CURV) Stock Forecast & Price Target

Torrid Holdings Inc. is poised for positive growth, with management indicating that the penetration of its sub-brands is expected to reach 25%-30% of its total assortment next year, which is anticipated to enhance margins due to limited promotions and higher full-priced sell-throughs. Further strengthening this outlook is the company's performance in customer retention, which has improved relative to the previous year despite store closures, and the expectation of significant cost savings in the upcoming fiscal period. Additionally, as the macroeconomic environment improves, operational margins are projected to contract by less than 100 basis points in 2025, benefiting from reduced discounting and enhanced operational leverage due to stronger top-line performance.

Torrid Holdings Inc. experienced a significant revenue decline of 7.7% year-over-year, totaling $262.8 million, which, despite slightly surpassing consensus expectations, indicates ongoing financial challenges. The company anticipates further difficulties, projecting a continued revenue decline of 1.8% year-over-year for 2026, even as adjusted EBITDA margins improve. Contributing to the negative outlook are increased tariff rates, higher marketing expenses, and prevailing macroeconomic uncertainties, leading the company to lower its overall year outlook and guide for Q3 under market expectations.