Torrid has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were given in the filing, but the offering is valued up to $100 million, although this number is usually just a placeholder. The company intends to list its shares on the New York Stock Exchange under the symbol CURV.
The underwriters for the offering are Merrill Lynch, Morgan Stanley, Goldman Sachs, JPMorgan, Baird, Telsey Advisory Group and William Blair.
This company is the industry-leading and fastest growing branded omni-channel retailer of apparel, intimates and accessories for young, plus-size women in North America. The goal is to grow its leadership position in this market by providing customers with a broad assortment of high-quality, carefully fitted apparel, intimates and accessories that is unapologetically young, sexy and fashionable.
The target customer is a 25- to 40-year-old woman who is curvy and wears sizes 10 to 30. Torrid believes its customer values the convenience and appeal of curated presentation of merchandise that helps her be stylish for any occasion, including casual, work and dressy, at accessible price points.
Torrid detailed in the filing:
We believe we offer the young, plus-size woman both a product selection and a customer experience that have not previously been available to her. This offering makes us her favorite shopping destination and presents the opportunity to capture a significant portion of an underserved and growing market. Our differentiated approach and distinctive assortment have resulted in a highly loyal customer base and strong growth in our business.
The company has delivered 21 consecutive quarters of comparable brand sales growth (averaging 27% over the three years ended January 2017), a compound annual growth rate in Torrid brand net sales of 44% for the three years ended January 2017, fiscal year 2016 net loss of $29.1 million and fiscal year 2016 adjusted EBITDA of $86.0 million.
Torrid will not receive any proceeds from this offering. Instead the selling stockholders will receive everything.