What Happened?

Shares of women’s plus-size apparel retailer Torrid Holdings (NYSE: CURV) jumped 3.7% in the afternoon session after broader market optimism as weaker-than-expected consumer inflation data boosted expectations of interest rate cuts by the Federal Reserve. 

The positive economic report indicated that inflation was cooling, which in turn increased the likelihood that the central bank could lower interest rates in the coming year. Lower interest rates generally stimulate the economy and are seen as a positive for the stock market. This widespread positive sentiment appeared to lift many stocks across the board, including those of Torrid, as part of a broader market rally.

After the initial pop the shares cooled down to $1.12, up 3.2% from previous close.

Is now the time to buy Torrid? Access our full analysis report here.

What Is The Market Telling Us

Torrid’s shares are extremely volatile and have had 48 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 2 days ago when the stock gained 8.9% as positive sentiment swept through the plus-size apparel sector as two of its peers, Destination XL and FullBeauty Brands, announced a merger. 

The deal between Destination XL and FullBeauty was set to create a large, specialized retailer for inclusive clothing. This news appeared to lift investor confidence in other companies operating in the same market, such as Torrid. The positive momentum was supported by broader market trends, as the Consumer Discretionary sector, which includes apparel companies, also moved to an all-time high, suggesting strong overall investor appetite for stocks in this part of the economy.

Torrid is down 78.9% since the beginning of the year, and at $1.12 per share, it is trading 84.2% below its 52-week high of $7.06 from January 2025. Investors who bought $1,000 worth of Torrid’s shares at the IPO in June 2021 would now be looking at an investment worth $46.17.

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