What Happened?
Shares of women’s plus-size apparel retailer Torrid Holdings (NYSE: CURV) fell 6.2% in the afternoon session after the stock continued to fall as the company reported weak second-quarter 2025 financial results, which showed significant declines in sales and profitability.
The plus-size women's apparel retailer saw its net sales decrease to $262.8 million from $284.6 million in the prior year, while comparable sales fell 6.9%. The company's profitability also took a hit, with its gross margin contracting to 35.6% from 38.7% a year ago. Consequently, net income plummeted to $1.6 million, or $0.02 per share, a sharp drop from $8.3 million, or $0.08 per share, in the same quarter last year. Looking ahead, Torrid provided full-year 2025 guidance, expecting net sales to be between $1.015 billion and $1.030 billion.
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What Is The Market Telling Us
Torrid’s shares are extremely volatile and have had 53 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 3 days ago when the stock dropped 22.8% on the news that the company reported disappointing second-quarter 2025 results and lowered its full-year financial guidance. The plus-size apparel retailer's net sales decreased 7.7% year-over-year to $262.8 million, with comparable sales falling 6.9%. Profitability also took a hit, as its gross profit margin shrank 3.2 percentage points year-on-year to 35.6%, and earnings per share fell to $0.02 from $0.08 in the same quarter last year. Looking ahead, Torrid cut its full-year 2025 forecast, now expecting net sales between $1.015 billion and $1.030 billion. The company also reduced its adjusted EBITDA guidance to a range of $80 million to $90 million. Adding to the negative sentiment, Torrid's revenue guidance for the next quarter fell 7.2% short of Wall Street's expectations.
Torrid is down 68.3% since the beginning of the year, and at $1.68 per share, it is trading 76.3% 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 $69.36.
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