Torrid Holdings Plunges 29.41% Amid Share Offering

On June 25, 2025, Torrid Holdings experienced a significant drop of 29.41% in pre-market trading, reflecting a substantial decline in investor confidence.

Torrid Holdings Inc. is a direct-to-consumer brand specializing in apparel, intimates, and accessories for women aged 25 to 40 in North America. The company has recently announced a secondary offering of 10 million shares at $3.50 per share, which could raise up to $35 million if fully subscribed. This move is part of a broader strategy to optimize its retail operations, including the closure of up to 180 stores by the end of the fiscal year 2025. The company aims to enhance customer experience and improve financial efficiency through these measures.

Additionally, Torrid Holdings has entered into a $20 million stock repurchase agreement with Sycamore Partners Torrid, L.L.C. This transaction, approved by the board, will see the company purchase shares at the offering price, with the repurchased shares held as treasury stock. The company's recent financial challenges, including high leverage and declining revenues, have led to a bearish outlook among analysts. The technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation. However, the company's positive digital growth and strategic initiatives provide some optimism for future performance.