Torrid Closes Above IPO Price as Body-Positivity Movement Grows
Following the initial public-offering price of $21 per share, the City of Industry, Calif., expanded-size brand Torrid closed at $24.15 per share on July 1, up $3.15, for a 15 percent increase on its first day of trading.
The company trades on the New York Stock Exchange under the symbol CURV. The IPO closed July 6. According to media reports, the company was valued at $2.5 billion following the IPO close. It had raised $230 million through its offering of 11 million shares of its common stock. Selling shareholders granted underwriters a 30-day option to buy an additional 1.65 million shares of common stock at the IPO price, less the underwriting discount and commissions. No proceeds from share sales by selling shareholders were received by Torrid.
Through its online and bricks-and-mortar presence, Torrid offers apparel, intimates and accessories to women ages 25–40 in sizes 10–30.
“We believe Torrid stands to benefit from thriving cultural movements involving female empowerment, body positivity and socially influenced purchasing. The growing celebration of femininity, inclusivity and self-identity, along with the emergence of plus-size celebrities and influencers, inspires young, curvy customers to demand more-flattering and stylish clothing they are proud to wear,” the brand said in its prospectus filed with the Securities and Exchange Commission. “To achieve our mission of being the best direct-to-consumer plus-size apparel and intimates brand, we have created a proprietary fit that empowers our customers and drives loyalty. In turn, our loyal customers provide us with a rich set of data that allows us to improve our products and experience, thus creating a virtuous cycle that reinforces our leading position in plus-size appareland intimates.”
In 2020, the brand generated net sales of $974 million in the plus-size apparel and intimates market, which the company said serves 90 million women. The brand’s 2020 net sales saw a 6 percent decline, which the company cited as due to challenges stemming from the COVID-19 pandemic. Yet it also cited an increase in e-commerce sales, offsetting the declines from its in-store sales. In 2019, the company’s net sales totaled $1.037 billion, an increase of 14 percent over 2018’s net sales of $909 million.
Torrid’s growth strategies include cultivating its intimates line Torrid Curve, attracting new customers, fortifying relationships with existing clients, driving loyalty to the brand and interest in its credit-card program, and growing its unified commerce platforms.
In 2013, Torrid was acquired by the private-equity firm Sycamore Partners in a $600 million deal that included the clothing retailer’s sibling brand Hot Topic.