What Happened?
Shares of women’s plus-size apparel retailer Torrid Holdings (NYSE: CURV) jumped 9% in the morning session after the company reported strong fourth-quarter 2024 results, which blew past analysts' estimates for sales, earnings, and operating profits.
The big win this quarter came from its sub-brands, which outperformed and helped bring in younger customers while pushing higher-margin sales. However, revenue still declined 6% year-over-year, reflecting softness in consumer demand and store closures.
Management admitted things started off a bit shaky during the first quarter of the year (2025) but pointed to clear signs of improvement, which could help ease investor concerns. Overall, this quarter was mixed but still had some key positives.
After the initial pop the shares cooled down to $5.81, up 4.3% from previous close.
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What The Market Is Telling Us
Torrid’s shares are extremely volatile and have had 52 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 biggest move we wrote about over the last year was 4 months ago when the stock dropped 33.9% on the news that the company reported weak third-quarter results, which missed analysts' revenue and EBITDA expectations. Its full-year revenue and EBITDA guidance also fell short of Wall Street's estimates. The company observed soft sales trends in late September, which continued through October. Macroeconomic pressures, such as constrained consumer spending and adverse weather events, also created a difficult operating environment.
Looking ahead, management emphasizes the need for more innovative and diversified product strategies to adapt to shifting consumer preferences. Overall, this was a weaker quarter.
Torrid is up 10% since the beginning of the year, but at $5.81 per share, it is still trading 35.1% below its 52-week high of $8.95 from July 2024. Investors who bought $1,000 worth of Torrid’s shares at the IPO in June 2021 would now be looking at an investment worth $240.58.
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