Torrid Holdings (CURV) Is Down 24.3% After Store Closures and Sales Forecast Cut – What's Changed

• Earlier in September 2025, Torrid Holdings announced second quarter earnings with sales of US$262.81 million and net income of US$1.57 million, as well as updated guidance forecasting full-year net sales between US$1.015 billion and US$1.03 billion and plans to close up to 180 stores during fiscal 2025.
• This combination of declining sales, reduced earnings expectations, and significant store closures marks a substantial operational shift as the company adapts to evolving consumer demand and the retail landscape.
• We’ll examine how Torrid’s plan to close up to 180 stores could impact its broader investment narrative going forward.

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Torrid Holdings Investment Narrative Recap

For investors considering Torrid Holdings, the core belief is a recovery in revenue growth and profitability as the company shifts toward a leaner, more adaptive retail model. The recent announcement of 180 prospective store closures signals a more aggressive realignment than previously communicated and brings both greater urgency and uncertainty to the story. The most important short-term catalyst, successful cost optimization through store rationalization, now shares the spotlight with heightened risk stemming from rapid store network reduction and its impact on near-term revenue and margins; the update is clearly material to both sides of the investment debate.

Among recent corporate developments, the announcement of up to 180 store closures for fiscal 2025 is especially relevant. This accelerates the company’s prior real estate plans, introducing additional short-term pressures while aiming for eventual structural improvements to net margin and capital flexibility. The company’s execution around these closures, without material disruption to its product assortment refresh and customer retention, remains key to any investment thesis relying on mid-term turnaround.

Yet, if many of these closures are clustered in regions critical to Torrid’s core customers, investors should be aware that...

Read the full narrative on Torrid Holdings (it's free!)

Torrid Holdings is projected to reach $995.9 million in revenue and $27.7 million in earnings by 2028. This forecast assumes a 3.0% annual revenue decline and an increase in earnings by $17.6 million from current earnings of $10.1 million.

Uncover how Torrid Holdings' forecasts yield a $3.85 fair value, a 133% upside to its current price.

Exploring Other Perspectives

Two community fair value estimates for Torrid Holdings range widely between US$1.90 and US$3.85, offering a sharp contrast to analyst expectations. With rapid store closures announced, consider how diverging opinions can shape your own risk assessment as the company works to align its footprint with demand.

Explore 2 other fair value estimates on Torrid Holdings - why the stock might be worth over 2x more than the current price!

Build Your Own Torrid Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Torrid Holdings research is our analysis highlighting 2 key rewards and 5 important warning signs that could impact your investment decision.
• Our free Torrid Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Torrid Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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