1 Consumer Stock Featured on Our Buy List and 2 We Have Reservations About

Retail Industry Transformation: Winners and Losers

Retail businesses are rapidly adapting their strategies as technological advancements reshape how consumers shop. A major driver of this evolution is the growth of online sales, which has enabled retailers to maintain comparable store sales and keep up with the S&P 500’s 10.1% return over the last half-year.

Despite recent positive performance, investors should remain cautious. Many companies in the retail sector are contending with significant long-term challenges. With that in mind, let’s highlight one standout consumer stock worth considering and two that may be facing headwinds.

Consumer Retail Stocks to Consider Selling

Torrid (CURV)

Market Capitalization: $110.1 million

Torrid Holdings (NYSE:CURV) is a retailer specializing in plus-size women’s fashion and accessories, championing inclusivity and body positivity.

Reasons to Be Cautious About CURV:

• Same-store sales have been sluggish for two years, suggesting limited growth potential in its primary markets.
• Over the past three years, earnings per share have declined at a faster rate than revenue, indicating shrinking profitability per sale.
• A net-debt-to-EBITDA ratio of 5× puts the company at risk of needing to secure funding under less favorable conditions if the market worsens.

Currently priced at $1.11 per share, Torrid is valued at 7.7 times its projected EV-to-EBITDA.

Tilly’s (TLYS)

Market Capitalization: $60.03 million

Tilly’s (NYSE:TLYS) targets teens and young adults with apparel, footwear, and accessories inspired by skate and surf culture.

Why We’re Avoiding TLYS:

• Declining same-store sales over the last two years point to difficulties attracting new customers to its physical stores.
• Ongoing cash outflows raise concerns about the company’s ability to achieve lasting growth.
• Negative EBITDA could force the company to accept costly debt or unfavorable loan terms.

With shares trading at $1.97, Tilly’s is valued at just 0.1 times its forward price-to-sales ratio.

Consumer Retail Stock to Watch

Warby Parker (WRBY)

Market Capitalization: $2.84 billion

Founded in 2010, Warby Parker (NYSE:WRBY) designs and sells eyewear—including prescription glasses, sunglasses, and contact lenses—through both its online platform and physical stores.

Why WRBY Stands Out:

• Rapid store openings signal a proactive approach to capturing new market opportunities.
• The company improved its operating margin by 4.8 percentage points over the past year, reflecting efficient scaling.
• Annual earnings per share have surged by 72.3% over the last three years, outperforming industry peers.

Warby Parker’s shares are currently priced at $23.53, equating to a forward price-to-earnings ratio of 50. Is this the right moment to invest?

Even More Promising Stocks

Discover additional top picks in our curated Top 5 Growth Stocks for this month. These high-quality selections have delivered a remarkable 244% return over the past five years (as of June 30, 2025).

Our 2020 list featured now-renowned companies like Nvidia, which soared 1,326% from June 2020 to June 2025, and lesser-known firms such as Tecnoglass, which achieved a 1,754% five-year return. Start your search for the next breakout stock with StockStory—free access available.