Why Is Torrid (CURV) Stock Soaring Today

What Happened:

Shares of women’s plus-size apparel retailer Torrid Holdings (NYSE:CURV) jumped 14.2% in the morning session after the company reported second-quarter earnings results. Torrid blew past analysts' EPS expectations. In addition, its revenue narrowly outperformed Wall Street's estimates. On the other hand, its revenue guidance for next quarter was underwhelming, and its gross margin missed Wall Street's estimates. Overall, this quarter was mixed but still had some key positives.

Is now the time to buy Torrid? Access our full analysis report here, it’s free.

What is the market telling us:

Torrid’s shares are very volatile and over the last year have had 64 moves greater than 5%. But moves this big are very rare even for Torrid and that is indicating to us that this news had a significant impact on the market’s perception of the business. 

The biggest move we wrote about over the last year was 9 months ago, when the stock gained 11.5% on the news that the company reported a "beat and raise" quarter. Third-quarter results surpassed analysts' revenue expectations, with the company highlighting notable improvement in both in-store and online traffic on a sequential basis. 

Looking forward, the company not only raised its full-year revenue guidance but also increased projections for adjusted EBITDA, surpassing Wall Street's estimates for both metrics. 

Lastly, the company announced the promotion of Paula Dempsey to the role of Chief Financial Officer. Dempsey has served as interim CFO and Senior Vice President of Investor Relations since May 2023. She joined the company in January 2023 with a background as Senior Vice President of Corporate Finance at Mattress Firm. Zooming out, this was a great quarter that shareholders will appreciate.

Torrid is up 14.8% since the beginning of the year, but at $6.89 per share it is still trading 23% 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 $285.59.

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.