What Happened?

Shares of women’s plus-size apparel retailer Torrid Holdings (NYSE: CURV) jumped 8.9% in the afternoon session after 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.

The shares closed the day at $1.08, up 12% from previous close.

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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 21 days ago when the stock gained 3.4% on the news that 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.

Torrid is down 79.6% since the beginning of the year, and at $1.08 per share, it is trading 84.8% 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 $44.51.

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