Torrid Holdings (CURV) Stock Forecast & Price Target

Torrid Holdings Inc. is poised for a positive outlook driven by the expected penetration of its sub-brands, which is projected to reach 25%-30% of the total assortment next year, enhancing margins through limited promotions and higher full-priced sell-throughs. Additionally, the company has reported improved customer retention trends following store closures, indicating resilience and strong consumer engagement. Furthermore, management anticipates achieving meaningful cost savings in the upcoming year, along with operational margins benefiting from a favorable macroenvironment that reduces the need for discounting while allowing for operating expenses to be effectively leveraged through stronger revenues.

Torrid Holdings Inc. experienced a 7.7% year-over-year decline in revenue, totaling $262.8 million, indicating challenges in consumer demand despite slightly exceeding consensus estimates. Additionally, the company is forecasting a further revenue decline of 1.8% in 2026, despite a modest expansion in Adjusted EBITDA margins. Ongoing macroeconomic uncertainties, combined with higher tariff rates and increased marketing expenditures, have led the company to lower its overall outlook for the year and provide guidance for Q3 that falls short of market expectations.