Torrid Holdings (CURV) Stock Forecast & Price Target

Torrid Holdings Inc. is experiencing strong performance from its sub-brands, which are expected to penetrate 25%-30% of the total product assortment next year, leading to improved margins due to limited promotions and higher full-priced sell-throughs. The company is successfully maintaining customer retention rates that are outperforming the prior year despite store closures, and it is projected to achieve significant cost savings in the upcoming year. Additionally, operational margins are anticipated to contract less than 100 basis points year-over-year in 2025, as a favorable macroenvironment encourages reduced discounting and better operational expense leverage driven by stronger top-line performance.

Torrid Holdings Inc. experienced a significant revenue decline of 7.7% year-over-year, totaling $262.8 million, which indicates potential challenges in demand and market position. Furthermore, the company's outlook has been negatively impacted by higher tariff rates, increased marketing expenditures, and persisting macroeconomic uncertainties, leading to a downward revision of its guidance for the upcoming quarter. Compounding these issues, projected revenue is expected to decrease by 1.8% year-over-year in 2026, despite a slight expansion in Adjusted EBITDA margins, underscoring concerns about the sustainability of profitability amidst declining sales.