CITY OF INDUSTRY, Calif. - Torrid Holdings Inc., a North American direct-to-consumer brand, has announced a public offering of 8 million shares of common stock, which will be sold by certain stockholders of the company. The company itself will not receive any proceeds from this offering. The selling stockholders also plan to give underwriters a 30-day option to purchase up to an additional 1.2 million shares at the public offering price, minus underwriting discounts and commissions.
The offering is being managed by BofA Securities, Goldman Sachs (NYSE:GS) & Co. LLC, Jefferies, and William Blair as joint lead book-running managers, with Telsey Advisory Group serving as co-manager.
Investors interested in the offering should refer to the registration statement on Form S-3, filed with the Securities and Exchange Commission (SEC) on February 16, 2024, which has since been declared effective. The offering will be made solely by means of a prospectus supplement and the accompanying prospectus. These documents are available on the SEC's website or directly from the underwriters.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in any jurisdiction where such an offer or sale would be unlawful.
Torrid specializes in fashion for curvy women, offering apparel, intimates, and accessories in sizes 10 to 30. The company's products are sold primarily through its e-commerce platform and its stores across the United States, Puerto Rico, and Canada.
The press release also includes forward-looking statements regarding the anticipated size and timing of the offering, as well as the potential additional share purchase option for underwriters. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially.
This news article is based on a press release statement from Torrid Holdings Inc. and does not constitute financial advice or an endorsement of the company's stock or offerings.
In other recent news, Torrid Holdings Inc. has showcased growth in its Q2 2024 financial results. The company reported net sales of $285 million and an adjusted EBITDA of $35 million, indicating a significant 12.2% expansion as a percentage of net sales. Torrid Holdings is currently transitioning to phase 2 of its strategy, focusing on product expansion and customer growth. Part of this strategy includes optimizing its store footprint and projecting net sales for the fiscal year to range between $1.135 billion and $1.145 billion, with adjusted EBITDA estimated to be between $110 million and $116 million.
The company's investment in data and digital capabilities has led to 60% of demand from direct business. Torrid plans to rightsize its store footprint, focusing on lifestyle centers to improve productivity, and expects to close 20 to 25 stores by the end of fiscal 2024. The company also plans to introduce multiple capsule collections and expand intimates categories to attract a younger demographic. Despite some declines in clearance sales comps, regular price comps increased by 6.4%, and the company experienced a strong finish to the quarter with a successful cash event in July. These are the latest developments in Torrid Holdings' ongoing efforts to adapt and grow in the retail environment.
InvestingPro Insights
As Torrid Holdings Inc. navigates through its latest public offering of common stock, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Torrid Holdings Inc. has a market capitalization of approximately $699.26 million, which reflects the company's value as perceived by the stock market. Despite a challenging retail landscape, the company has demonstrated resilience with a revenue of $1,133.36 million over the last twelve months as of Q2 2025.
One of the InvestingPro Tips for Torrid Holdings Inc. (CURV) highlights that the company is trading at a high earnings multiple, with a P/E ratio of 54.76. This suggests investors have high expectations for the company's future earnings growth. Additionally, the stock has experienced a significant price uptick of 47.14% over the last six months, indicating a strong performance in the stock market during this period. However, it's important to note that the stock price movements have been quite volatile, which could be a consideration for risk-averse investors.
For those interested in further insights, there are additional InvestingPro Tips available for Torrid Holdings Inc. at https://www.investing.com/pro/CURV. These tips include analysts' predictions of profitability for the company this year and a note that while the company has been profitable over the last twelve months, it does not pay a dividend to shareholders. With a total of ten InvestingPro Tips listed, investors have access to a comprehensive analysis that can inform their investment decisions regarding Torrid Holdings Inc.
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