Torrid (CURV) Faces Caution Despite 37% Six-Month Stock Rally

Torrid Holdings Inc. (CURV) shares have risen 37.3% to $1.57 over the six months through May 13, 2026, outperforming the S&P 500 by 30.2 percentage points, but analysts cited weakening fundamentals as a reason for caution. The retailer’s same-store sales have declined at an average annual rate of 5.7% over the past two years, signaling pressure on organic demand across stores and e-commerce. Its free cash flow margin fell 7.9 percentage points over the past year, raising concerns about cash profitability if the company pursues growth through additional store openings. Torrid also burned $21.87 million in cash over the past year and held $405.5 million in debt against $20.44 million in cash. The stock trades at 7.7 times forward EV-to-EBITDA, a valuation the analysis said reflects optimism despite balance-sheet and cash-flow risks.