By Katherine Hamilton

Torrid lowered its outlook as it expects to spend more on tariffs.

The plus-size apparel company on Thursday said it anticipates annual sales will be $1.02 billion to $1.03 billion, down from previous guidance of $1.03 billion to $1.06 billion. The lower numbers are related to higher-than-expected tariff costs and a bigger investment in marketing during the second half of the year, Chief Executive Lisa Harper said.

Tariffs are now expected to cost $50 million this year, up from a previous estimate of $20 million, due to the final tariff announcements in July, Harper said. Torrid had said in June it could mitigate the total cost of tariffs, but now expects about $10 million to be left unmitigated, despite strategies such as expense reductions and price hikes to offset the new costs.

Shares slid 12% to $2.09 in after-hours trading. At the close, the stock had lost more than half its value this year.

In the second quarter ended in early August, Torrid posted a profit of $1.57 million, or 2 cents a share, down from $8.33 million, or 8 cents a share, a year earlier.

Sales fell 8% to $262.8 million. Analysts surveyed by FactSet forecast revenue of $260 million. Same-store sales fell 6.9%, a steeper drop than the 5.5% decline analysts projected.

For the current third quarter, Torrid expects sales to be $235 million to $245 million, below the $260 million estimate from Wall Street.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

September 04, 2025 16:45 ET (20:45 GMT)

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