Torrid Holdings Completes Stock Repurchase and Underwriting Agreement

Torrid Holdings has completed a stock repurchase and underwriting agreement, purchasing $20 million of its common stock from Sycamore Partners Torrid, L.L.C. and selling 10 million shares at $3.50 per share. The company will not receive proceeds from the sale. Analysts rate Torrid Holdings stock as a Buy with a $5.00 price target.

Torrid Holdings Inc. (NYSE:CURV) has completed a significant financial transaction, announcing the pricing of a secondary offering of 10,000,000 shares of common stock at $3.50 per share [1]. The offering is expected to close on or about June 26, 2025, contingent on customary closing conditions [2]. Additionally, Torrid has agreed to a concurrent repurchase of $20 million of its common stock from Sycamore Partners, L.L.C. [3].

The secondary offering involves the sale of shares by certain stockholders of Torrid, with underwriters granted a 30-day option to purchase an additional 1,500,000 shares at the offering price minus underwriting discounts and commissions. Notably, Torrid will not receive any proceeds from the sale of shares by the selling stockholders, including any proceeds from the additional shares sold under the underwriters' option.

Concurrent with the closing of the offering, Torrid has agreed to purchase $20 million of its common stock from Sycamore Partners at the same price per share as the public offering. This repurchase, approved by Torrid’s board of directors, will be held as treasury stock upon completion. The concurrent repurchase is conditioned on the successful closing of the offering.

Analysts have rated Torrid Holdings stock as a Buy with a $5.00 price target, reflecting confidence in the company's strategic moves and financial health.

References:
[1] https://www.businesswire.com/news/home/20250624478108/en/Torrid-Holdings-Inc.-Announces-Pricing-of-Secondary-Offering-of-Common-Stock-and-Concurrent-Share-Repurchase
[2] https://www.gurufocus.com/news/2944137/torrid-holdings-inc-announces-pricing-of-secondary-offering-of-common-stock-and-concurrent-share-repurchase-curv-stock-news
[3] https://aijourn.com/torrid-holdings-inc-announces-pricing-of-secondary-offering-of-common-stock-and-concurrent-share-repurchase/