-- Delivered Second Quarter Net Sales in line with guidance -- Second Quarter Net Income of $1.6 million -- Reported Second Quarter Adjusted EBITDA(1) in line with guidance -- Updates Fiscal 2025 Guidance CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)--September 04, 2025--
Torrid Holdings Inc. ("Torrid" or the "Company") (NYSE: CURV), a direct-to-consumer apparel, intimates, and accessories brand in North America for women sizes 10 to 30, today announced its financial results for the quarter ended August 2, 2025.
"Our second quarter results were in line with our expectations for both sales and Adjusted EBITDA(1) . Our strategic focus on sub-brands continues to drive positive market response, bringing innovation and diversity to our product assortments. We are proactively increasing our marketing investment to drive awareness and consideration in the back half of the year. For the full year, we are updating our guidance to reflect these incremental marketing investments and the new tariff rates. The final tariff announcements in July are expected to result in up to $10 million of additional expense exposure. In total, this represents an estimated $15 million headwind to Adjusted EBITDA(1) . It is worth highlighting that through disciplined sourcing strategies and comprehensive expense optimization, we have already mitigated $40 million of tariff costs this year--demonstrating proactive management of external pressures while protecting profitability and reinforcing our commitment to delivering long-term shareholder value," said Lisa Harper, Chief Executive Officer.
She continued, "Looking ahead, our priorities are clear: elevating our assortment with innovative, high-margin sub-brands, expanding digital and influencer marketing to attract new customers, and optimizing our store fleet to both improve efficiency, customer experience and accelerate the growth of our leading digital channel. Together, these initiatives are expected to drive an increase of 150 to 250 basis points of Adjusted EBITDA(1) as a percentage of net sales, beginning in fiscal 2026, net of incremental marketing investments. At the same time, our disciplined capital allocation strategy--reducing debt and repurchasing shares--positions us to deliver stronger performance and long-term shareholder value."
Financial Highlights for the Second Quarter of Fiscal 2025
-- Net sales decreased 7.7% to $262.8 million compared to $284.6 million
for the second quarter of last year. Comparable sales(2) decreased 6.9%
in the second quarter.
-- Gross profit margin was 35.6% compared to 38.7% in the second quarter
of last year.
-- Net income of $1.6 million, or $0.02 per share, compared to a net
income of $8.3 million, or $0.08 per share, in the second quarter of last
year.
-- Adjusted EBITDA(1) was $21.5 million, or 8.2% of net sales, compared to
$34.6 million, or 12.2% of net sales, in the second quarter of last
year.
-- As of Q2 YTD, we closed 59 Torrid stores. The total store count at the
quarter end was 575 stores.
Second Quarter Fiscal 2025 Financial and Operating Metrics
Three Months Ended
----------------------------------
August 2, 2025 August 3, 2024
---------------- ----------------
Net sales (in thousands) $ 262,806 $ 284,638
Comparable sales$(A)$ (7)% (1)%
Number of stores (as of end of period) 575 657
Net income (in thousands) $ 1,567 $ 8,328
Adjusted EBITDA$(B)$ (in thousands) $ 21,525 $ 34,592
(A) Comparable sales(2) for the three-month period ended August 3, 2024 compares sales for the 13-week period ended August 3, 2024 with sales for the 13-week period ended August 5, 2023.
(B) Refer to "Non-GAAP Reconciliation" below for a reconciliation of net income to Adjusted EBITDA(1) .
Balance Sheet and Cash Flow
Cash and cash equivalents at the end of the second quarter of fiscal 2025 totaled $21.5 million. Total liquidity at the end of the quarter, including available borrowing capacity under our revolving credit agreement, was $111.7 million.
Net cash used in operating activities for the six-month period ended August 2, 2025 was $2.3 million, compared to net cash provided by operating activities of $68.4 million for the six-month period ended August 3, 2024.
Outlook
For the third quarter of fiscal 2025 the Company expects:
-- Net sales between $235 million and $245 million. -- Adjusted EBITDA(1) between $16 million and $21 million.
For the full year fiscal 2025 the Company expects:
-- Net sales between $1.015 billion and $1.030 billion.
-- Adjusted EBITDA(1) between $80 million and $90 million.
-- Capital expenditures between $10 million and $15 million reflecting
infrastructure and technology investment.
-- Up to 180 store closures to better align our current demand and sales
channels.
-- We anticipate up to $50 million tariff impact, with $40 million
mitigated through sourcing actions, expense reductions, and price
optimization, leaving up to $10 million of expected exposure from the
higher tariffs announced in July.
The above outlook is based on several assumptions, including, but not limited to, the macroeconomic challenges in the industry in fiscal 2025. The above outlook does not take into consideration the volatility of tariff changes or its impact on inflation or consumer demand. See "Forward-Looking Statements" for additional information.
Call Details
A conference call to discuss the Company's fiscal 2025 second quarter results is scheduled for September 4, 2025, at 4:30 p.m. ET. Those who wish to participate in the call may do so by dialing (877) 407-9208 or (201) 493-6784 for international callers. The conference call will also be webcast live at https://investors.torrid.com. For those unable to participate, a replay of the conference call will be available approximately three hours after the conclusion of the call until September 11, 2025.
Notes
1. Adjusted EBITDA is a non-GAAP financial measure. See "Non-GAAP
Financial Measures" and "Non-GAAP Reconciliation" for additional
information on non-GAAP financial measures and the accompanying table for
a reconciliation to the most comparable GAAP measure. The Company does
not provide reconciliations of the forward-looking non-GAAP measures of
Adjusted EBITDA to the most directly comparable forward-looking GAAP
measure because the timing and amount of excluded items are unreasonably
difficult to fully and accurately estimate. For the same reasons, the
Company is unable to address the probable significance of the unavailable
information, which could be material to future results.
2. Comparable sales for any given period are defined as the sales of
Torrid's e-Commerce operations and stores that it has included in its
comparable sales base during that period. The Company includes a store in
its comparable sales base after it has been open for 15 full fiscal
months. If a store is closed during a fiscal year, it is only included in
the computation of comparable sales for the full fiscal months in which
it was open. Partial fiscal months are excluded from the computation of
comparable sales. We also determine when certain store remodels and
relocations are reintegrated into our comparable sales base. Comparable
sales for the three-month period ended August 3, 2024 compares sales for
the 13-week period ended August 3, 2024 with sales for the 13-week period
ended August 5, 2023. We apply current year foreign currency exchange
rates to both current year and prior year comparable sales to remove the
impact of foreign currency fluctuation and achieve a consistent basis for
comparison. Comparable sales allow us to evaluate how our unified
commerce business is performing exclusive of the effects of
non-comparable sales and new store openings.
About Torrid
TORRID is a direct-to-consumer brand in North America dedicated to offering a diverse assortment of stylish apparel, intimates, and accessories skillfully designed for the curvy woman. Specializing in sizes 10 to 30, our primary focus is on providing fashionable, comfortable, and affordable options that meet the unique needs of our customers. Our extensive collection features high quality merchandise, including tops, bottoms, denim, dresses, intimates, activewear, footwear, and accessories. Our products are exclusive to us, and each product is meticulously crafted to cater to the needs of the curvy woman, empowering her to love the way she looks and feels. Our collections are artfully curated to suit all aspects of our customers' lives, including casual weekends, work, dressy and special occasions. Understanding the importance of affordability, we aim to keep our prices reasonable without compromising on quality. This allows us to build a meaningful connection with our customers, distinguishing us from other brands that often overlook plus- and mid-size consumers. Our brand experience and product offerings establish us as a differentiated and reliable choice for plus- and mid-size customers, which we believe sets us apart in the market. We strive to be everything our customer needs in her closet, consistently delivering products that make her feel confident and stylish.
Non-GAAP Financial Measures
In addition to results determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"), management utilizes certain non-GAAP performance measures, such as Adjusted EBITDA, for purposes of evaluating ongoing operations and for internal planning and forecasting purposes. We believe that these non-GAAP operating measures, when reviewed collectively with our GAAP financial information, provide useful supplemental information to investors in assessing our operating performance.
Adjusted EBITDA is a supplemental measure of our operating performance that is neither required by, nor presented in accordance with, GAAP and our calculations thereof may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA represents GAAP net income (loss) plus interest expense less interest income, net of other expense (income), plus provision for (benefit from) income taxes, depreciation and amortization ("EBITDA"), and share-based compensation, non-cash deductions and charges, and other expenses.
We believe Adjusted EBITDA facilitates operating performance comparisons from period to period by isolating the effects of certain items that vary from period to period without any correlation to ongoing operating performance. We also use Adjusted EBITDA as one of the primary methods for planning and forecasting the overall expected performance of our business and for evaluating on a quarterly and annual basis, actual results against such expectations.
Further, we recognize Adjusted EBITDA as a commonly used measure in determining business value and, as such, use it internally to report and analyze our results and as a benchmark to determine certain non-equity incentive payments made to executives.
Adjusted EBITDA has limitations as an analytical tool. This measure is not a measurement of our financial performance under GAAP and should not be considered in isolation or as an alternative to or substitute for net income (loss), income (loss) from operations, earnings (loss) per share or any other performance measures determined in accordance with GAAP or as an alternative to cash flows from operating activities as a measure of our liquidity. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Forward-Looking Statements
Certain statements made in this earnings release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this earnings release are forward-looking statements. Forward-looking statements reflect our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "will," "should," "can have," "likely" and other words and terms of similar meaning (including their negative counterparts or other various or comparable terminology).
For example, all statements we make relating to our expected third quarter of fiscal 2025 and our full year fiscal 2025 performance (including, without limitation, all information under the heading "Outlook") and our plans and objectives for future operations, growth or initiatives (including, without limitation, expected impacts of initiatives on Adjusted EBITDA beginning in fiscal 2026) are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those that we expected, including:
-- changes in consumer spending and general economic conditions;
-- the negative impact on our revenue and profitability as a result of the
imposition of new or increased duties or tariffs on goods from the
countries where we manufacture our merchandise which, among other things,
could limit our ability to manufacture products in cost-effective
countries and require us to absorb costs or pass costs onto customers;
-- the interruption of the flow of merchandise from international
manufacturers;
-- the negative impact on interest expense as a result of high interest
rates;
-- inflationary pressures with respect to labor and raw materials and
global supply chain constraints that could increase our expenses;
-- the adverse impact of rulemaking changes implemented by the Consumer
Financial Protection Bureau on our income streams, profitability and
results of operations;
-- our ability to identify and respond to new and changing product trends,
customer preferences and other related factors;
-- our dependence on a strong brand image;
-- increased competition from other brands and retailers;
-- our reliance on third parties to drive traffic to our website;
-- the success of the shopping centers in which our stores are located;
-- our ability to adapt to consumer shopping preferences and develop and
maintain a relevant and reliable omni-channel experience for our
customers;
-- our dependence upon independent third parties for the manufacture of
all of our merchandise;
-- availability constraints and price volatility in the raw materials used
to manufacture our products;
-- our sourcing a significant amount of our products from China;
-- shortages of inventory, delayed shipments to our e-Commerce customers
and harm to our reputation due to difficulties or shut-down of our
distribution facility;
-- our reliance upon independent third-party transportation providers for
substantially all of our product shipments;
-- our growth strategy, including our retail store optimization strategy;
-- our failure to attract and retain employees that reflect our brand
image, embody our culture and possess the appropriate skill set;
-- damage to our reputation arising from our use of social media, email
and text messages;
-- our reliance on third parties for the provision of certain services,
including real estate management;
-- our dependence upon key members of our executive management team;
-- our reliance on information systems;
-- system security risk issues that could disrupt our internal operations
or information technology services;
-- unauthorized disclosure of sensitive or confidential information,
whether through a breach of our computer system, third-party computer
systems we rely on, or otherwise;
-- our failure to comply with federal and state laws and regulations and
industry standards relating to privacy, data protection, advertising and
consumer protection;
-- payment-related risks that could increase our operating costs or
subject us to potential liability;
-- claims made against us resulting in litigation;
-- changes in laws and regulations applicable to our business;
-- regulatory actions or recalls arising from issues with product safety;
-- our inability to protect our trademarks or other intellectual property
rights;
-- our substantial indebtedness and lease obligations;
-- restrictions imposed by our indebtedness on our current and future
operations;
-- changes in tax laws or regulations or in our operations that may impact
our effective tax rate;
-- the possibility that we may recognize impairments of definite-lived
assets;
-- our failure to maintain adequate internal control over financial
reporting; and
-- the threat of war, terrorism or other catastrophes, including natural
disasters, that could negatively impact our business.
The outcome of the events described in any of our forward-looking statements are also subject to risks, uncertainties and other factors described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on April 1, 2025 and in our other filings with the SEC and public communications. You should evaluate all forward-looking statements made in this communication in the context of these risks and uncertainties.
We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the effect of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. We caution you that the important factors referenced above may not include all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the outcomes or affect us or our operations in the way we expect. The forward-looking statements included in this earnings release are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise except to the extent required by law. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.
Investors and others should note that we may announce material information to our investors using our investor relations website , SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media, to communicate with our investors and the public about our company, our business and other issues. It is possible that the information that we post on social media could be deemed to be material information. We therefore encourage investors to visit these websites from time to time. The information contained on such websites and social media posts is not incorporated by reference into this filing. Further, our references to website URLs in this filing are intended to be inactive textual references only.
TORRID HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
(In thousands, except per share data)
Three Months Ended
----------------------------
August 2, August 3,
2025 2024
------------ --------------
Net sales $ 262,806 $ 284,638
Cost of goods sold 169,318 174,380
------- -------
Gross profit 93,488 110,258
Selling, general and administrative expenses 70,511 76,838
Marketing expenses 12,817 13,007
------- -------
Income from operations 10,160 20,413
Interest expense 8,119 9,142
Interest income, net of other (income)
expense (13) (124)
------- -------
Income before provision for income taxes 2,054 11,395
Provision for income taxes 487 3,067
------- -------
Net income $ 1,567 $ 8,328
======= =======
Net earnings per share:
Basic $ 0.02 $ 0.08
Diluted $ 0.02 $ 0.08
Weighted average number of shares:
Basic 102,470 104,500
Diluted 102,746 106,074
Other comprehensive income (loss):
Foreign currency translation adjustment 16 (98)
------- -------
Total other comprehensive income (loss) 16 (98)
------- -------
Comprehensive income $ 1,583 $ 8,230
======= =======
TORRID HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands, except share and per share data)
February 1,
August 2, 2025 2025 August 3, 2024
--------------- --------------- ------------------
Assets
Current assets:
Cash and
cash
equivalents $ 21,543 $ 48,523 $ 53,940
Restricted
cash 399 399 399
Inventory 130,235 148,493 128,431
Prepaid
expenses
and other
current
assets 25,765 24,507 30,295
Prepaid
income
taxes 11,144 4,244 4,134
---------- ---------- -----------
Total current
assets 189,086 226,166 217,199
Property and
equipment, net 63,672 77,669 91,608
Operating lease
right-of-use
assets 119,097 140,651 144,682
Deposits and
other
noncurrent
assets 20,333 18,935 16,919
Deferred tax
assets 13,877 16,620 8,681
Intangible asset 8,400 8,400 8,400
---------- ---------- -----------
Total assets $ 414,465 $ 488,441 $ 487,489
========== ========== ===========
Liabilities and
Stockholders'
Deficit
Current
liabilities:
Accounts
payable $ 53,198 $ 72,378 $ 68,371
Accrued and
other
current
liabilities 108,898 125,743 116,777
Operating
lease
liabilities 33,497 40,505 38,638
Borrowings
under credit
facility 7,900 -- --
Current
portion of
term loan 16,144 16,144 16,144
Due to
related
parties 8,436 8,362 4,975
Income taxes
payable 118 -- 722
---------- ---------- -----------
Total current
liabilities 228,191 263,132 245,627
Noncurrent
operating lease
liabilities 113,675 134,481 139,001
Noncurrent debt,
net 264,337 272,409 280,481
Deferred
compensation 3,801 3,913 5,018
Other noncurrent
liabilities 5,577 5,595 6,308
---------- ---------- -----------
Total
liabilities 615,581 679,530 676,435
---------- ---------- -----------
Commitments and
contingencies
Stockholders'
Deficit:
Preferred
shares: $0.01
par value;
5,000,000 shares
authorized; no
shares issued
and outstanding
at August 2,
2025, February
1, 2025, and
August 3, 2024 -- -- --
Common shares:
$0.01 par
value;
1,000,000,000
shares
authorized;
105,157,295 and
99,126,387
shares issued
and
outstanding,
respectively,
at August 2,
2025;
104,859,266
shares issued
and outstanding
at February 1,
2025; and
104,637,273
shares issued
and outstanding
at August 3,
2024 1,052 1,049 1,048
Additional
paid-in
capital 142,386 140,029 137,593
Accumulated
deficit (323,762) (331,269) (327,087)
Accumulated
other
comprehensive
loss (507) (898) (500)
Common shares in
treasury, at
cost: 6,030,908
shares at
August 2, 2025;
no shares at
February 1,
2025 and August
3, 2024 (20,285) -- --
---------- ---------- -----------
Total
stockholders'
deficit (201,116) (191,089) (188,946)
---------- ---------- -----------
Total
liabilities and
stockholders'
deficit $ 414,465 $ 488,441 $ 487,489
========== ========== ===========
TORRID HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
Six Months Ended
------------------------------------
August 2, 2025 August 3, 2024
---------------- ------------------
OPERATING ACTIVITIES
Net income $ 7,507 $ 20,500
Adjustments to reconcile net income
to net cash (used in) provided by
operating activities:
Write down of inventory 1,427 992
Operating right-of-use assets
amortization 17,583 20,242
Depreciation and other
amortization 19,584 18,940
Share-based compensation 2,840 3,846
Deferred taxes 2,743 --
Write off of excess operating
lease liabilities against
operating right-of-use-assets (4,164) (913)
Other (799) 133
Changes in operating assets and
liabilities:
Inventory 17,060 12,527
Prepaid expenses and other
current assets (1,258) (8,066)
Prepaid income taxes (6,900) (1,573)
Deposits and other
noncurrent assets (1,045) (2,225)
Accounts payable (19,980) 23,081
Accrued and other current
liabilities (17,026) 10,509
Operating lease liabilities (19,840) (22,457)
Other noncurrent liabilities (82) (330)
Deferred compensation (112) (456)
Due to related parties 74 (4,354)
Income taxes payable 118 (1,949)
----------- -----------
Net cash (used in) provided by
operating activities (2,270) 68,447
INVESTING ACTIVITIES
Purchases of property and equipment (3,671) (10,180)
----------- -----------
Net cash used in investing
activities (3,671) (10,180)
----------- -----------
FINANCING ACTIVITIES
Proceeds from revolving credit
facility 171,650 62,780
Principal payments on revolving
credit facility (163,750) (70,050)
Deferred financing costs paid for
revolving credit facility (375) --
Principal payments on term loan (8,750) (8,750)
Proceeds from issuances under
share-based compensation plans 199 523
Withholding tax payments related to
vesting of restricted stock units
and awards and exercise of non
qualified stock options (444) (484)
Share repurchase, including excise
tax paid (20,000) --
----------- -----------
Net cash used in financing
activities (21,470) (15,981)
----------- -----------
Effect of foreign currency exchange
rate changes on cash, cash
equivalents and restricted cash 431 (81)
----------- -----------
(Decrease) increase in cash, cash
equivalents and restricted cash (26,980) 42,205
Cash, cash equivalents and
restricted cash at beginning of
period 48,922 12,134
----------- -----------
Cash, cash equivalents and
restricted cash at end of period $ 21,942 $ 54,339
=========== ===========
SUPPLEMENTAL INFORMATION
Cash paid during the period for
interest related to the revolving
credit facility and term loan $ 17,680 $ 18,529
=========== ===========
Cash paid during the period for
income taxes $ 7,135 $ 11,093
=========== ===========
SUPPLEMENTAL DISCLOSURE OF NON-CASH
INVESTING AND FINANCING ACTIVITIES
Property and equipment purchases
included in accounts payable and
accrued liabilities $ 2,138 $ 1,115
=========== ===========
Excise tax from share repurchase
included in accounts payable and
accrued liabilities $ 200 $ --
=========== ===========
Cost of treasury shares included in
accounts payable and accrued
liabilities $ 85 $ --
=========== ===========
Non-GAAP Reconciliation
The following table provides a reconciliation of net income to Adjusted EBITDA for the periods presented (dollars in thousands):
Three Months Ended
------------------------------------
August 2, 2025 August 3, 2024
---------------- ------------------
Net income $ 1,567 $ 8,328
Interest expense 8,119 9,142
Interest income, net of other
(income) expense (13) (124)
Provision for income taxes 487 3,067
Depreciation and amortization(A) 9,430 8,922
Share-based compensation(B) 1,371 2,188
Noncash deductions and
charges(C) 23 125
Other expenses$(D)$ 541 2,944
----------- -----------
Adjusted EBITDA $ 21,525 $ 34,592
=========== ===========
(A) Depreciation and amortization excludes amortization of debt issuance costs and original issue discount that are reflected in interest expense.
(B) Share-based compensation for awards that will be settled in cash was not material during the three months ended August 2, 2025 and $1.1 million during the three months ended August 3, 2024. These awards are accounted for similar to awards settled in shares in accordance with ASC 718, Compensation--Stock Compensation.
(C) Noncash deductions and charges includes noncash losses on property and equipment disposals and the net impact of noncash rent expense.
(D) Other expenses include severance costs for certain key management positions, certain transaction and litigation fees, and the reimbursement of certain management expenses, primarily for travel, incurred by Sycamore on our behalf, which are not considered to be part of our core business.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250904734938/en/
CONTACT: Investors
Tom Filandro
Lyn Walther
IR@torrid.com
Media
Joele Frank, Wilkinson Brimmer Katcher
Michael Freitag / Arielle Rothstein / Lyle Weston
Media@torrid.com
(END) Dow Jones Newswires
September 04, 2025 16:05 ET (20:05 GMT)