Torrid Holdings (CURV) Stock Forecast & Price Target

Torrid Holdings Inc. has demonstrated strong financial performance with a significant gross margin expansion of 290 basis points to 36.1%, surpassing consensus expectations, driven by lower product costs and an increase in regular price sales. Despite the rise in selling, general and administrative expenses relative to sales, the company is positioned for future growth with management forecasting positive comparable sales and adjusted EBITDA margin expansion of 80-100 basis points for FY25, aided by an improved supply chain and a new loyalty program. Furthermore, the success of outlet stores and outdoor centers indicates a strong consumer demand and intent to purchase, supporting the outlook for low single-digit to mid-single-digit year-over-year sales growth in the upcoming fiscal year.

Torrid Holdings Inc., in its recent financial report, experienced a significant decline in key performance indicators, with third-quarter sales dropping 4.2% year-over-year to $263.8 million, falling short of both internal estimates and market consensus. Adjusted EBITDA for the same period was reported at $19.6 million, down 1.1% year-over-year, and considerably below the expected growth figures. Additionally, the company revised its annual adjusted EBITDA outlook downward to a range of $101 million to $107 million, reflecting challenges in the competitive marketplace and a lack of innovation in product assortments, contributing to a negative outlook on its financial performance.