Group 1 - Torrid Holdings (CURV) has experienced significant selling pressure, resulting in a 48.4% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted [1] - The stock is currently in oversold territory, indicated by a Relative Strength Index (RSI) reading of 29.17, suggesting a potential trend reversal [3] - A consensus among sell-side analysts has led to a 4.2% increase in earnings estimates for CURV over the last 30 days, which typically correlates with price appreciation [4] Group 2 - CURV holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [4]

Torrid Holdings (CURV) has been on a downward spiral lately with significant selling pressure. After declining 48% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier. Guide to Identifying Oversold Stocks We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a st ...

[Part I - Financial Information](index=5&type=section&id=Part%20I%20-%20Financial%20Information) [Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for Torrid Holdings Inc. as of August 3, 2024, and for the three and six-month periods then ended Condensed Consolidated Balance Sheets | Balance Sheet Highlights (In thousands) | August 3, 2024 | February 3, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $53,940 | $11,735 | | Inventory | $128,431 | $142,199 | | Total current assets | $217,199 | $179,123 | | Total assets | $487,489 | $476,947 | | **Liabilities & Stockholders' Deficit** | | | | Accounts payable | $68,371 | $46,183 | | Total current liabilities | $245,627 | $232,107 | | Term loan (noncurrent) | $280,481 | $288,553 | | Total liabilities | $676,435 | $688,664 | | Total stockholders' deficit | ($188,946) | ($211,717) | Condensed Consolidated Statements of Operations and Comprehensive Income | Income Statement (In thousands, except per share data) | Three Months Ended Aug 3, 2024 | Three Months Ended Jul 29, 2023 | | :--- | :--- | :--- | | Net sales | $284,638 | $289,144 | | Gross profit | $110,258 | $102,677 | | Income from operations | $20,413 | $20,188 | | Net income | $8,328 | $6,629 | | Diluted EPS | $0.08 | $0.06 | | Income Statement (In thousands, except per share data) | Six Months Ended Aug 3, 2024 | Six Months Ended Jul 29, 2023 | | :--- | :--- | :--- | | Net sales | $564,409 | $582,998 | | Gross profit | $225,679 | $213,319 | | Income from operations | $46,556 | $46,251 | | Net income | $20,500 | $18,437 | | Diluted EPS | $0.19 | $0.18 | Condensed Consolidated Statements of Cash Flows | Cash Flow Summary (In thousands) | Six Months Ended Aug 3, 2024 | Six Months Ended Jul 29, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $68,447 | $31,695 | | Net cash used in investing activities | ($10,180) | ($9,593) | | Net cash used in financing activities | ($15,981) | ($17,118) | | **Increase in cash, cash equivalents and restricted cash** | **$42,205** | **$4,975** | Notes to Unaudited Condensed Consolidated Financial Statements - The company is a direct-to-consumer brand of apparel, intimates, and accessories for women who wear sizes 10 to 30, operating through its e-Commerce platform and stores in the US, Puerto Rico, and Canada[27](index=27&type=chunk) | Revenue by Product Category (In thousands) | Six Months Ended Aug 3, 2024 | Six Months Ended Jul 29, 2023 | | :--- | :--- | :--- | | Apparel | $512,515 | $513,482 | | Non-apparel | $37,828 | $53,157 | | Other | $14,066 | $16,359 | | **Total net sales** | **$564,409** | **$582,998** | - As of August 3, 2024, the company had **$296.6 million of outstanding indebtedness**, net of discounts and costs, primarily from its Term Loan Credit Agreement[55](index=55&type=chunk)[60](index=60&type=chunk)[133](index=133&type=chunk) - There were no borrowings under the **$150.0 million ABL Facility**[55](index=55&type=chunk)[60](index=60&type=chunk)[133](index=133&type=chunk) - The company is defending a class action lawsuit alleging false and misleading statements in its IPO registration statement and subsequent filings[72](index=72&type=chunk)[73](index=73&type=chunk) - A motion to dismiss was granted in August 2024, and related derivative complaints are currently stayed[72](index=72&type=chunk)[73](index=73&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results of operations, analyzing key performance metrics, operational results for the recent three and six-month periods compared to the prior year, and its liquidity and capital resources Key Financial and Operating Metrics | Key Metrics | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | | :--- | :--- | :--- | :--- | :--- | | Comparable sales | (1)% | (18)% | (5)% | (16)% | | Net income (in thousands) | $8,328 | $6,629 | $20,500 | $18,437 | | Adjusted EBITDA (in thousands) | $34,592 | $32,151 | $72,820 | $70,412 | - The number of stores increased to **657 as of August 3, 2024**, up from 639 as of July 29, 2023[89](index=89&type=chunk) - Key factors affecting performance include customer acquisition and retention, overall economic trends like inflation, brand awareness growth, inventory management, and strategic investments in infrastructure and technology[95](index=95&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) Results of Operations - **Three Months Ended Aug 3, 2024 vs. July 29, 2023:** - **Net Sales:** Decreased **1.6% to $284.6 million**, driven by fewer sales transactions, partially offset by improved pricing[110](index=110&type=chunk) - **Gross Profit:** Increased **7.4% to $110.3 million**[111](index=111&type=chunk) - Gross margin improved by **320 basis points to 38.7%**, mainly due to reduced product costs and more regular-priced sales[111](index=111&type=chunk) - **SG&A Expenses:** Increased **10.4% to $76.8 million**, primarily due to higher severance costs, performance bonuses, and other store operating costs[112](index=112&type=chunk) - **Net Income:** Increased **25.6% to $8.3 million**[112](index=112&type=chunk) - **Six Months Ended Aug 3, 2024 vs. July 29, 2023:** - **Net Sales:** Decreased **3.2% to $564.4 million**, driven by fewer sales transactions[119](index=119&type=chunk) - **Gross Profit:** Increased **5.8% to $225.7 million**[120](index=120&type=chunk) - Gross margin improved by **340 basis points to 40.0%**, due to lower product and merchandising payroll costs[120](index=120&type=chunk) - **SG&A Expenses:** Increased **8.9% to $153.3 million**, driven by higher headquarters expenses and performance bonuses[121](index=121&type=chunk) - **Net Income:** Increased **11.2% to $20.5 million**[121](index=121&type=chunk) Liquidity and Capital Resources - The company's primary source of liquidity is cash from operations and its ABL Facility[126](index=126&type=chunk) - As of August 3, 2024, availability under the ABL Facility was **$99.9 million** with no borrowings outstanding[126](index=126&type=chunk) - Net cash from operating activities for the first six months of 2024 was **$68.4 million**, a significant increase from **$31.7 million** in the same period of 2023[130](index=130&type=chunk) - This increase was mainly due to higher net income and favorable changes in working capital[130](index=130&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that its market risk profile, particularly concerning interest rate risk on its variable-rate debt, has not materially changed from the disclosure in its latest Annual Report on Form 10-K - There have been no material changes to the company's market risk profile since the fiscal year ended February 3, 2024[135](index=135&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of August 3, 2024 - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the quarter[136](index=136&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[138](index=138&type=chunk) [Part II - Other Information](index=35&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in legal proceedings arising in the ordinary course of business but does not currently believe their resolution will have a material adverse effect on its financial condition or operations - The company does not expect current legal proceedings to have a material adverse effect on its business, financial condition, or cash flows[140](index=140&type=chunk) [Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the fiscal year ended February 3, 2024 - There have been no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K[141](index=141&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company discusses its share repurchase program, which was authorized for up to $100.0 million, with approximately $44.9 million remaining available for future repurchases - No shares of common stock were repurchased during the three months ended August 3, 2024[142](index=142&type=chunk) - As of August 3, 2024, approximately **$44.9 million** remained available under the authorized **$100.0 million** share repurchase program[142](index=142&type=chunk) [Other Items (Defaults, Mine Safety, Other Info, Exhibits)](index=35&type=section&id=Other%20Items) This section confirms there were no defaults upon senior securities, mine safety disclosures are not applicable, and provides an index of the exhibits filed with the 10-Q report - The company reports no defaults on senior securities, no mine safety disclosures, and no other information under Item 5[143](index=143&type=chunk)

Torrid Holdings (CURV) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Since ...

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Torrid Holdings (CURV) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question. Torrid Holdings is a member of our Retail-Wholesale group, which includes 211 different companies and currently sits at #9 in the Zacks Sector Rank. The Zacks Sector ...

Inside Creative House/iStock via Getty Images Torrid Holdings Inc. (NYSE:CURV) 2Q24 showed signs of revenue inflection after a challenging start to the year. The company is applying better assortment management techniques that may prove positive in future quarters. Gross margins have improved through less clearance, but this has been absorbed by higher SG&A. On the valuation side, Torrid's price is basically flat compared to when I last evaluated it last quarter. This implies an earnings yield of 5%, which, ...

Margin improvements in Q2 helped lift the plus-size retailer. Shares of Torrid Holdings (CURV 8.96%) climbed today after the plus-sized women's apparel brand posted better-than-expected results in its second-quarter earnings report. The stock finished up 9% on the news. Torrid impresses the market Like other apparel retailers, Torrid is struggling with a challenging consumer environment, but the company scaled back on markdowns to lift profits in the quarter. Comparable sales were down 0.8%, though the comp ...

Financial Data and Key Metrics Changes - For Q2 2024, sales were $285 million, with adjusted EBITDA at $35 million, reflecting a 103 basis point increase in adjusted EBITDA margin to 12.2% driven by strong regular price comps which increased by 6.4% [4][30] - Gross profit increased by 7.4% to $110 million, with gross margin expanding by 323 basis points to 38.7% due to lower product costs and fewer markdowns [31][32] - Net income rose to $8.3 million, or $0.08 per share, compared to $6.6 million, or $0.06 per share in the same period last year [32] Business Line Data and Key Metrics Changes - Regular price sales comp increased by 6.4%, while total comps declined by 0.8% due to a 50% decline in markdown sales, indicating a strategic shift towards healthier inventory management [20][31] - Apparel categories, particularly tops, denim, and dresses, saw double-digit positive comps at regular price [20] Market Data and Key Metrics Changes - Brand awareness increased from the low 40s to 52% year-over-year, with customer satisfaction remaining high at 95% [7] - The company reported a 19% reduction in total inventory and a 52% reduction in markdown inventory compared to the previous year [21][30] Company Strategy and Development Direction - The company is in the second phase of its transformation strategy, focusing on product evolution and expansion, aiming to capture a broader customer demographic, particularly younger customers [5][16] - Plans to introduce multiple capsule collections in January 2025 to appeal to a wider range of customers and enhance product offerings [16][24] - The company is optimizing its store footprint, targeting a balanced mix between mall and outdoor center locations over the next three to five years [34][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving low- to mid-single digit growth in comps and mid-teens adjusted EBITDA margins over time, driven by core product expansion and store optimization [19] - The company anticipates that the pressure from negative markdown comps will decrease in the second half of the year, leading to positive comps [20][31] - Management highlighted the importance of maintaining a focus on customer needs and preferences while expanding product offerings [16][54] Other Important Information - The company ended Q2 2024 with $54 million in cash and cash equivalents, an increase of $35 million compared to the same period last year [30][33] - Significant improvements in distribution center productivity were noted, with 98% of orders shipped the same day they were ordered [10] Q&A Session Summary Question: What is the ultimate target for the fleet optimization program? - The company aims for a balanced 50/50 split between mall and outdoor center locations over the next three to five years, with closures timed with lease expirations to minimize financial impact [40][62] Question: What are the expectations for pricing and product costs? - Management is seeing improved full-price sell-through and is focused on developing scarcity in the model, which supports better inventory management and cost savings [41][43] Question: Can you provide more detail on the full-year sales guidance? - The company tightened its guidance based on six months of actual performance data, expecting positive results in Q3 and Q4, supported by new capsule launches [52][53] Question: What is the strategy regarding the average customer age? - The goal is to slightly lower the average customer age while retaining the existing customer base, with new product initiatives aimed at attracting younger demographics [54][55]

4 P -11 I T P JamesBrey Torrid Holdings Inc. (NYSE:CURV) stock had bled out last year, but found a bottom in late fall of 2023. Since then, the stock has clawed back. Brave investors who came in at $2-3 have seen some strong gains, but the company is not out of the woods yet. We have been following this stock for some time, and have had several successful trades going back to January 2022. The sentiment around the stock has certainly improved from the doldrums a year ago, but there remains a long road ahead ...

"Essence impressed us all from the minute we met her at the Los Angeles Casting Event. Even with zero modeling experience, she is so natural and comfortable in front of the camera—and more importantly her vibrancy and authenticity really emulate the core values of Torrid," said Vivian Alhorn, Chief Marketing Officer. "We are absolutely thrilled to introduce her to the world as the newest member of the Torrid family." The casting call lasted six months with in-store events at over 100 various mall locations ...