In a recent development, Torrid Holdings Inc. (NYSE:CURV), a leader in the retail-apparel sector, has seen a significant transaction from one of its insiders. Sycamore Partners Torrid, L.L.C., connected to the company's director and ten percent owner, Stefan Kaluzny, sold a total of 7,282,942 shares of common stock.
The shares were sold at a price of $3.80 per share, resulting in a transaction value of over $27 million. This sale took place on September 13, 2024, as part of a registered public offering, according to the details provided in the SEC Form 4 filing. Following the sale, Sycamore Partners Torrid, L.L.C. holds a total of 75,069,044 shares in the company.
It's important to note that Sycamore Partners Torrid, L.L.C. is associated with a group of entities and individuals, including Sycamore Partners, L.P., Sycamore Partners Associates-C, L.P., and others, all of which are controlled by Mr. Kaluzny. This group of reporting persons has filed the Form 4 jointly, indicating their collective transactions in Torrid Holdings Inc.
Investors closely monitor insider transactions, such as this sale, as they can provide insights into the company's financial health and future prospects as perceived by those with intimate knowledge of the business. The sale by Sycamore Partners Torrid, L.L.C. represents a significant amount of stock and is a noteworthy event for shareholders and potential investors of Torrid Holdings Inc.
In other recent news, Torrid Holdings Inc. has announced the pricing of an underwritten public offering of 8 million shares at $4.00 per share. The shares are being sold by certain stockholders, and the transaction is expected to close around September 13, 2024. The offering is managed by BofA Securities, Goldman Sachs (NYSE:GS) & Co. LLC, Jefferies, and William Blair, with Telsey Advisory Group serving as the co-manager.
This announcement follows Torrid's recent release of its Q2 2024 financial results. The company reported net sales of $285 million and an adjusted EBITDA of $35 million, marking a 12.2% expansion as a percentage of net sales. As part of its growth strategy, Torrid is focusing on product expansion and customer growth, with net sales for the fiscal year expected to range between $1.135 billion and $1.145 billion.
The company's investment in data and digital capabilities has led to 60% of demand coming from direct business. Torrid also plans to optimize its store footprint, expecting to close 20 to 25 stores by the end of fiscal 2024. These recent developments are part of Torrid Holdings' ongoing efforts to adapt and grow in the retail environment.
InvestingPro Insights
Torrid Holdings Inc. (NYSE:CURV) has recently been the subject of considerable attention due to insider transactions and its performance in the market. With real-time data from InvestingPro, we can gain a clearer picture of the company's financial standing and stock behavior.
According to InvestingPro data, Torrid Holdings has a market capitalization of $418.2 million, indicating its size within the retail-apparel sector. Despite challenges, the company reported a gross profit margin of 36.91% over the last twelve months as of Q2 2025, which reflects its ability to maintain profitability in its operations. However, it is important to note that the company's revenue has seen a slight decline, with a -4.31% change over the same period.
InvestingPro Tips highlight that analysts have recently revised their earnings upwards for the upcoming period for Torrid Holdings, suggesting a potential improvement in the company's financial outlook. Additionally, the Relative Strength Index (RSI) indicates that the stock is currently in oversold territory, which could appeal to investors looking for potential buying opportunities.
The stock price of Torrid Holdings has experienced significant volatility, as evidenced by a -39.29% one-week total return and a -47.36% one-month total return. However, looking at a longer time frame, the company's stock has seen a high return over the last year, with a 224.8% increase, highlighting the potential for substantial gains amidst the volatility.
For those interested in further insights, InvestingPro offers additional tips on Torrid Holdings, including information on earnings multiples, price volatility, and liquidity concerns. There are a total of 12 additional InvestingPro Tips available for Torrid Holdings, which can be accessed for more detailed investment analysis.
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