-- Delivered Third Quarter Net Sales in line with guidance -- Third Quarter Net Loss of $6.4 million -- Updates Fiscal 2025 Guidance CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)--December 03, 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 November 1, 2025.
"Our third quarter results fell short of our expectations due to execution missteps that were largely within our control. While several core categories delivered strong comparable growth, these gains were more than offset by an imbalance in our assortment mix. We have already taken decisive corrective actions and are seeing early signs of improvement," said Lisa Harper, Chief Executive Officer.
"Looking ahead, we have clear visibility into our path forward and are executing with urgency. We have strengthened our merchandising guardrails, rebalanced our assortment architecture, reintroduced a more profitable footwear program, and accelerated chase orders in key core categories. Our sub-brand strategy remains a powerful growth engine, our store optimization program is performing exceptionally well, and we're investing behind customer acquisition, loyalty, and brand-building initiatives. With these actions underway, we believe we are well positioned to deliver improved performance, strengthen profitability, and create long-term value for our customers and shareholders," concluded Harper.
Financial Highlights for the Third Quarter of Fiscal 2025
-- Net sales decreased 10.8% to $235.2 million compared to $263.8 million
for the third quarter of last year. Comparable sales(1) decreased 8.3% in
the third quarter.
-- Gross profit margin was 34.9% compared to 36.1% in the third quarter of
last year.
-- Net loss of $6.4 million, or ($0.06) per share, compared to a net loss of
$1.2 million, or ($0.01) per share, in the third quarter of last year.
-- Adjusted EBITDA(2) was $9.8 million, or 4.2% of net sales, compared to
$19.6 million, or 7.4% of net sales, in the third quarter of last year.
-- As of Q3 YTD, we closed 74 Torrid stores. The total store count at the
quarter end was 560 stores.
Third Quarter Fiscal 2025 Financial and Operating Metrics
Three Months Ended
----------------------------------
November 1, November 2,
2025 2024
---------------- ----------------
Net sales (in thousands) $ 235,153 $ 263,766
Comparable sales$(A)$ (8)% (7)%
Number of stores (as of end of period) 560 655
Net loss (in thousands) $ (6,426) $ (1,194)
Adjusted EBITDA$(B)$ (in thousands) $ 9,776 $ 19,584
_____________________
(A) Comparable sales(1) for the three-month period ended November 2, 2024
compares sales for the 13-week period ended November 2, 2024 with sales
for the 13-week period ended November 4, 2023.
(B) Refer to "Non-GAAP Reconciliation" below for a reconciliation of net
loss to Adjusted EBITDA(2) .
Balance Sheet and Cash Flow
Cash and cash equivalents at the end of the third quarter of fiscal 2025 totaled $17.2 million. Total liquidity at the end of the quarter, including available borrowing capacity under our revolving credit agreement, was $103.4 million.
Net cash used in operating activities for the nine-month period ended November 1, 2025 was $7.1 million, compared to net cash provided by operating activities of $65.4 million for the nine-month period ended November 2, 2024.
Outlook
For the full year fiscal 2025 the Company expects:
-- Net sales between $995 million and $1.002 billion.
-- Adjusted EBITDA(2) between $59 million and $62 million.
-- Capital expenditures between $13 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,
resulting in a $10 million exposure from the higher tariffs announced in
July/August.
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 third quarter results is scheduled for December 3, 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 December 17, 2025.
Notes
(1) 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 and nine-month period
ended November 2, 2024 compare sales for the 13- and 39-week periods
ended November 2, 2024, respectively, with sales for the 13- and
39-week periods ended November 4, 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.
(2) 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.
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 fourth quarter of fiscal 2025, 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 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 LOSS
(UNAUDITED)
(In thousands, except per share data)
Three Months Ended
--------------------------------
November 1, November 2,
2025 2024
-------------- ----------------
Net sales $ 235,153 $ 263,766
Cost of goods sold 152,977 168,609
--------- ---------
Gross profit 82,176 95,157
Selling, general and administrative
expenses 66,256 74,899
Marketing expenses 15,715 13,056
--------- ---------
Income from operations 205 7,202
Interest expense 7,906 8,784
Interest income, net of other expense
(income) 259 (362)
--------- ---------
Loss before income taxes (7,960) (1,220)
Benefit from income taxes (1,534) (26)
--------- ---------
Net loss $ (6,426) $ (1,194)
========= =========
Net loss per share:
Basic $ (0.06) $ (0.01)
Diluted $ (0.06) $ (0.01)
Weighted average number of shares:
Basic 99,161 104,698
Diluted 99,161 104,698
Other comprehensive loss:
Foreign currency translation
adjustment (161) (86)
--------- ---------
Total other comprehensive loss (161) (86)
--------- ---------
Comprehensive loss $ (6,587) $ (1,280)
========= =========
TORRID HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands, except share and per share data)
November 1, February 1, November 2,
2025 2025 2024
------------- ------------- ---------------
Assets
Current assets:
Cash and cash
equivalents $ 17,213 $ 48,523 $ 43,953
Restricted cash 399 399 399
Inventory 128,817 148,493 138,261
Prepaid expenses
and other current
assets 27,102 24,507 33,343
Prepaid income
taxes 15,135 4,244 6,617
-------- -------- --------
Total current assets 188,666 226,166 222,573
Property and equipment,
net 58,305 77,669 85,569
Operating lease
right-of-use assets 113,280 140,651 149,732
Deposits and other
noncurrent assets 20,408 18,935 18,027
Deferred tax assets 13,877 16,620 8,681
Intangible asset 8,400 8,400 8,400
-------- -------- --------
Total assets $ 402,936 $ 488,441 $ 492,982
======== ======== ========
Liabilities and
Stockholders' Deficit
Current liabilities:
Accounts payable $ 66,010 $ 72,378 $ 77,478
Accrued and other
current
liabilities 98,888 125,743 116,650
Operating lease
liabilities 32,712 40,505 36,312
Borrowings under
credit facility 14,870 -- --
Current portion of
term loan 16,144 16,144 16,144
Due to related
parties 3,421 8,362 4,330
Income taxes
payable 713 -- 62
-------- -------- --------
Total current
liabilities 232,758 263,132 250,976
Noncurrent operating
lease liabilities 107,206 134,481 145,126
Noncurrent debt, net 260,300 272,409 276,445
Deferred compensation 3,926 3,913 3,735
Other noncurrent
liabilities 5,261 5,595 5,986
-------- -------- --------
Total liabilities 609,451 679,530 682,268
-------- -------- --------
Commitments and
contingencies
Stockholders' Deficit:
Preferred shares: $0.01
par value; 5,000,000
shares authorized; no
shares issued and
outstanding at November
1, 2025, February 1,
2025, and November 2,
2024 -- -- --
Common shares: $0.01
par value;
1,000,000,000 shares
authorized;
105,227,850 and
99,196,942 shares
issued and
outstanding,
respectively, at
November 1, 2025;
104,859,266 shares
issued and outstanding
at February 1, 2025;
and 104,732,148 shares
issued and outstanding
at November 2, 2024 1,053 1,049 1,049
Additional paid-in
capital 143,573 140,029 138,532
Accumulated deficit (330,188) (331,269) (328,281)
Accumulated other
comprehensive loss (668) (898) (586)
Common shares in
treasury, at cost:
6,030,908 shares at
November 1, 2025; no
shares at February 1,
2025 and November 2,
2024 (20,285) -- --
-------- -------- --------
Total stockholders'
deficit (206,515) (191,089) (189,286)
-------- -------- --------
Total liabilities and
stockholders' deficit $ 402,936 $ 488,441 $ 492,982
======== ======== ========
TORRID HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
Nine Months Ended
------------------------------
November 1, November 2,
2025 2024
------------- ---------------
OPERATING ACTIVITIES
Net income $ 1,081 $ 19,306
Adjustments to reconcile net income to net
cash (used in) provided by operating
activities:
Write down of inventory 2,406 1,519
Operating right-of-use assets
amortization 25,409 30,429
Depreciation and other amortization 27,817 27,842
Share-based compensation 3,972 4,531
Deferred taxes 2,744 --
Write off of excess operating lease
liabilities against operating
right-of-use-assets (4,092) (1,294)
Other (329) 337
Changes in operating assets and
liabilities:
Inventory 17,359 2,052
Prepaid expenses and other current
assets (2,595) (11,114)
Prepaid income taxes (10,891) (4,056)
Deposits and other noncurrent
assets (1,146) (3,375)
Accounts payable (7,357) 31,876
Accrued and other current
liabilities (27,787) 10,775
Operating lease liabilities (29,076) (33,527)
Other noncurrent liabilities (422) (588)
Deferred compensation 13 (1,739)
Due to related parties (4,941) (4,999)
Income taxes payable 713 (2,609)
-------- --------
Net cash (used in) provided by operating
activities (7,122) 65,366
-------- --------
INVESTING ACTIVITIES
Purchases of property and equipment (5,424) (12,617)
-------- --------
Net cash used in investing activities (5,424) (12,617)
-------- --------
FINANCING ACTIVITIES
Proceeds from revolving credit facility 324,790 62,780
Principal payments on revolving credit
facility (309,920) (70,050)
Deferred financing costs paid for
revolving credit facility (375) --
Principal payments on term loan (13,125) (13,125)
Proceeds from issuances under share-based
compensation plans 199 704
Withholding tax payments related to
vesting of restricted stock units and
awards and exercise of non qualified
stock options (507) (675)
Share repurchase, including excise tax
paid (20,085) --
-------- --------
Net cash used in financing activities (19,023) (20,366)
-------- --------
Effect of foreign currency exchange rate
changes on cash, cash equivalents and
restricted cash 259 (165)
-------- --------
(Decrease) increase in cash, cash
equivalents and restricted cash (31,310) 32,218
Cash, cash equivalents and restricted cash
at beginning of period 48,922 12,134
-------- --------
Cash, cash equivalents and restricted cash
at end of period $ 17,612 $ 44,352
======== ========
SUPPLEMENTAL INFORMATION
Cash paid during the period for interest
related to the revolving credit facility
and term loan $ 23,063 $ 27,080
======== ========
Cash paid during the period for income
taxes $ 8,985 $ 14,200
======== ========
SUPPLEMENTAL DISCLOSURE OF NON-CASH
INVESTING AND FINANCING ACTIVITIES
Property and equipment purchases included
in accounts payable and accrued
liabilities $ 3,416 $ 1,450
======== ========
Excise tax from share repurchase included
in accounts payable and accrued
liabilities $ 200 $ --
======== ========
Non-GAAP Reconciliation
The following table provides a reconciliation of net loss to Adjusted EBITDA for the periods presented (dollars in thousands):
Three Months Ended
------------------------------
November 1, November 2,
2025 2024
------------- ---------------
Net loss $ (6,426) $ (1,194)
Interest expense 7,906 8,784
Interest income, net of other expense
(income) 259 (362)
Benefit from income taxes (1,534) (26)
Depreciation and amortization(A) 7,869 8,523
Share-based compensation(B) 1,132 685
Noncash deductions and charges(C) 200 112
Other expenses$(D)$ 370 3,062
-------- --------
Adjusted EBITDA $ 9,776 $ 19,584
======== ========
_____________________
(A) Depreciation and amortization excludes amortization of debt issuance
costs and original issue discount that are reflected in interest
expense.
(B) During the three months ended November 1, 2025 and November 2, 2024,
share-based compensation includes benefits of $0.1 million and $0.3
million, respectively, for awards that will be settled in cash as they
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/20251203879395/en/
CONTACT: Investor Relations
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
December 03, 2025 16:05 ET (21:05 GMT)
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