Torrid Holdings (CURV) Stock Forecast & Price Target

Torrid Holdings Inc. is poised for growth, as management expects its sub-brands to comprise 25%-30% of total sales, which will enhance profit margins through limited promotions and higher full-priced sell-throughs. Additionally, customer retention trends have improved following recent store closures, and the company is on track to achieve significant cost savings in the coming year. The anticipated improvement in the macroeconomic environment further supports a positive outlook, as it is expected to lead to reduced discounting and better operational leverage alongside a stronger revenue stream.

Torrid Holdings Inc. experienced a revenue decline of 7.7% year-over-year, totaling $262.8 million, reflecting broader challenges in the market despite being slightly above consensus estimates. Additionally, the company projects a revenue fall of 1.8% year-over-year in 2026, even as Adjusted EBITDA margins are expected to expand by approximately 130 basis points. Factors such as higher tariff rates, increased marketing investments, and ongoing macroeconomic uncertainties have compelled the company to lower its annual outlook and guide Q3 results below market expectations.