Torrid stock price target lowered to $6 at BofA on margin pressure

Investing.com - BofA Securities has lowered its price target on Torrid Holdings Inc (NYSE:CURV) to $6.00 from $7.00 while maintaining a Buy rating on the stock. The stock, currently trading at $2.38, has seen a notable 9.17% gain over the past week, though it remains significantly below its 52-week high of $7.25.

The adjustment follows Torrid’s second-quarter earnings report, which showed earnings per share of $0.02, in line with consensus estimates of $0.02 and the firm’s forecast of $0.01. According to InvestingPro data, the company maintains a P/E ratio of 24.77 and generated revenue of $1.07 billion in the last twelve months.

Torrid management reduced its fiscal 2025 guidance, now projecting net sales of $1.015-1.030 billion, down from the previous forecast of $1.030-1.055 billion, citing an uncertain macroeconomic environment.

The company also lowered its adjusted EBITDA guidance to $80-90 million from $95-105 million, attributing the reduction to margin pressure from tariffs and increased marketing investments intended to drive sales.

BofA Securities has decreased its fiscal 2025 and 2026 EBITDA estimates by 16% and 14% respectively, but maintains its Buy rating based on confidence in Torrid’s longer-term sales turnaround strategy and earnings potential.

In other recent news, Torrid Holdings Inc. reported its Q2 2025 earnings, revealing a mixed financial performance. The company achieved a slight revenue beat with $262.8 million, exceeding the analyst forecast of $259.38 million. However, Torrid experienced a decline in overall sales and profitability compared to the previous year. Earnings per share stood at $0.02, aligning with analyst projections. These results come amidst a challenging retail environment. Despite the sales dip, the revenue beat indicates some resilience in Torrid’s financials. The company’s stock rose in the aftermarket session, reflecting investor optimism.

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