Update shared on29 Aug 2025
Fair value Decreased 34%Analysts have lowered their fair value estimate for Torrid Holdings, primarily reflecting a notable decline in the Future P/E multiple while revenue growth expectations remain unchanged, resulting in the consensus price target dropping from $4.45 to $3.85.
What's in the News
- Torrid CEO Lisa Harper sold 350,000 common shares at $3.32 per share on June 26, 2025 (Periodicals).
- The company completed a $35 million follow-on equity offering of 10 million shares at $3.50 per share, with a $0.18 discount per share, and instituted a 90-day lock-up for certain stock and options expiring September 22, 2025 (Key Developments).
- Torrid Holdings was added to multiple value-focused Russell indices (including Russell 2000, 2500, 3000, Microcap, Small Cap Comp, and 3000E Value) while being dropped from various corresponding growth benchmarks as of late June 2025 (Key Developments).
- The company provided updated earnings guidance, expecting Q2 2025 net sales between $250 million and $265 million, and full-year 2025 net sales between $1.03 billion and $1.055 billion (Key Developments).
- Torrid completed its previously announced share buyback program, having repurchased over 6.7 million shares (6.28% of shares outstanding) for $55.06 million; no shares were repurchased in the latest quarter (Key Developments).
Valuation Changes
Summary of Valuation Changes for Torrid Holdings
- The Consensus Analyst Price Target has significantly fallen from $4.45 to $3.85.
- The Future P/E for Torrid Holdings has significantly fallen from 24.17x to 20.91x.
- The Consensus Revenue Growth forecasts for Torrid Holdings remained effectively unchanged, at -3.0% per annum.
Disclaimer
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