What Happened?
Shares of women’s plus-size apparel retailer Torrid Holdings (NYSE: CURV) jumped 3.4% in the afternoon session after positive earnings reports from several peer retailers boosted investor sentiment in the sector.
The broader retail industry saw a wave of good news. Kohl's, for instance, surged after it reported a surprise profit for its latest quarter, while analysts had expected a loss. Similarly, Abercrombie & Fitch's stock soared after the apparel seller announced stronger-than-anticipated profits and raised its financial forecast for the full year.
After the initial pop the shares cooled down to $1.24, up 4.2% 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 4 days ago when the stock gained 11.8% on the news that comments from a key Federal Reserve official boosted investor optimism for a potential interest rate cut. New York Federal Reserve President John Williams, a voting member of the rate-setting committee, suggested he sees room for "further policy easing," which sent a strong signal to the markets. Following his remarks, the probability of a December rate cut, as measured by the CME FedWatch Tool, surged from 39% to 71%. Lower interest rates can stimulate the economy by making borrowing cheaper for both consumers and businesses, which often translates to increased consumer spending. This prospect is outweighing recent reports of lower consumer confidence, as investors bet that a more accommodative Fed policy will support retailers through the holiday season.
Torrid is down 76.6% since the beginning of the year, and at $1.24 per share, it is trading 82.5% 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 $51.14.
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