By Connor Hart
Torrid widened its loss and logged lower sales in the fiscal fourth-quarter as turnaround initiatives weighed on both its top and bottom lines.
Despite the short-term hit, the company said these actions have started to pay off and guided for higher-than-expected sales for the coming year.
Shares gained 33%, to $1.67, in after-hours trading Thursday. Through the regular session's close, the stock has lost more than three-quarters of its value over the past year.
The plus-size apparel company on Thursday posted a loss of $8.12 million for its three months ended Jan. 31, compared with a loss of $2.99 million a year earlier. The quarterly loss came out to 8 cents a share, compared with analyst expectations for a loss of 13 cents a share, according to FactSet.
Net sales fell 14% to $236.2 million but came in ahead of the $231.1 million that Wall Street modeled. Comparable sales--or those from stores and digital channels open for at least a year--fell 10%, in line with analyst expectations.
Chief Executive Lisa Harper said 2025 was a transformational year for the company, during which it closed roughly 150 unproductive locations, launched five sub-brands and fundamentally restructured its product assortment.
These changes allowed the company to begin 2026 on stronger footing, well positioned to accelerate customer growth and deepen loyalty across its existing base, she added.
Looking ahead, Torrid expects adjusted Ebitda--or earnings before interest, taxes, depreciation and amortization--of $14 million to $18 million for the current quarter, compared with analyst views for $26 million. Net sales are projected to be between $236 million and $244 million, compared with forecasts for $236.8 million.
For the year, the company guided for adjusted Ebitda of $65 million to $75 million on net sales of $940 million to $960 million. Analysts were looking for adjusted Ebitda of $69.1 million on sales of $938.7 million.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
March 19, 2026 16:34 ET (20:34 GMT)
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