CITY OF INDUSTRY, Calif. - Torrid Holdings Inc. (NYSE: CURV), a direct-to-consumer apparel brand, has announced the pricing of its underwritten public offering of 8 million shares at $4.00 per share. The shares are being sold by certain stockholders, with the transaction expected to close around September 13, 2024, subject to customary closing conditions.
The selling stockholders have also provided underwriters a 30-day option to purchase up to an additional 1.2 million shares at the public offering price, minus the underwriting discount and commissions. Torrid itself will not receive any proceeds from the sale of the shares.
The offering is managed by BofA Securities, Goldman Sachs & Co. LLC, Jefferies, and William Blair as joint lead book-running managers, with Telsey Advisory Group serving as the co-manager.
Investors can access the offering's details through a prospectus supplement and the accompanying prospectus, which are part of a registration statement filed with the Securities and Exchange Commission (SEC) on February 16, 2024, and declared effective. These documents are available on the SEC's EDGAR database and can also be obtained from the respective book runners.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy, nor will any sale of these securities occur in states or jurisdictions where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of such state or jurisdiction.
Torrid specializes in fashionable and affordable apparel for curvy women, ranging from sizes 10 to 30. The brand's offerings include a wide range of products such as tops, bottoms, dresses, and accessories. Torrid generates revenue primarily through its e-commerce platform and retail stores across the United States, Puerto Rico, and Canada.
The press release also contains forward-looking statements regarding the offering and its expected closing date. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially. Torrid has emphasized that it does not undertake any duty to update any forward-looking statements after the date of the press release.
This news article is based on a press release statement from Torrid Holdings Inc.
In other recent news, Torrid Holdings Inc. has announced a public offering of 8 million shares of common stock, managed by BofA Securities, Goldman Sachs & Co. LLC, Jefferies, and William Blair. The company, however, will not receive any proceeds from this offering. This comes after Torrid reported net sales of $285 million and an adjusted EBITDA of $35 million in its Q2 2024 financial results, marking a significant 12.2% expansion as a percentage of net sales.
The company is transitioning to phase 2 of its strategy, focusing on product expansion and customer growth, and expects net sales for the fiscal year to range between $1.135 billion and $1.145 billion. Adjusted EBITDA is projected 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 optimize 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 its intimates categories to attract a younger demographic. These are the latest developments in Torrid Holdings' ongoing efforts to adapt and grow in the retail environment.
InvestingPro Insights
Amidst the announcement of Torrid Holdings Inc.'s (NYSE: CURV) public offering, a glimpse into the company's financial health and market performance can provide investors with a clearer picture of its current standing. According to real-time data from InvestingPro, Torrid has a market capitalization of approximately $513.98 million, suggesting a moderate size within the retail apparel market. The company's P/E ratio stands at 37.82, indicating that investors are willing to pay a higher price for earnings, potentially reflecting expectations of future growth or a premium for the company's brand and market position.
InvestingPro Tips highlight that analysts have recently revised their earnings upwards for the upcoming period, which could signal optimism about Torrid's future performance. Additionally, despite a challenging week for the stock with significant price volatility, analysts predict that the company will be profitable this year. This aligns with the company's profitability over the last twelve months, as reflected in the data, with a basic EPS (Continuing Operations) of $0.13. These insights suggest that while the stock has faced recent headwinds, the broader outlook among analysts remains positive.
Investors interested in a deeper dive into Torrid's performance metrics and potential can explore additional InvestingPro Tips for comprehensive analysis and forecasts. Currently, there are 11 more tips available on InvestingPro, which can offer valuable guidance for those considering an investment in Torrid Holdings Inc.
For those closely watching the stock, Torrid is expected to announce its next earnings on December 5, 2024. The lead-up to this date may see increased investor attention as market participants assess the company's financial trajectory and potential impacts on the stock's valuation.
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