What Happened?
Shares of women’s plus-size apparel retailer Torrid Holdings (NYSE: CURV) fell 6.4% in the afternoon session after the stock's negative momentum continued as two top executives, including the Chief Financial Officer, sold significant portions of their stock.
The company’s Chief Financial Officer, Paula Dempsey, sold 26,000 shares worth $45,760, while the Chief Strategy and Planning Officer, Ashlee Wheeler, sold 16,959 shares for a total of $30,187. These sales followed a period of negative news for the company. Torrid recently reported its second-quarter results, which showed a 6.9% decrease in comparable sales.
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What Is The Market Telling Us
Torrid’s shares are extremely volatile and have had 49 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 17 days ago when the stock dropped 6.2% on the news that 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.
Torrid is down 67% since the beginning of the year, and at $1.75 per share, it is trading 75.3% 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 $72.26.
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