Torrid (CURV) Q1 2026 earnings summary

Executive summary

• Q1 2025 net sales were $266 million, down 4.9% year-over-year, with adjusted EBITDA of $27.1 million at the high end of guidance despite a 3.5%–4% decline in comparable sales.

• Net income was $5.9 million, a 51% decrease from $12.2 million in Q1 2024, reflecting lower sales and higher marketing expenses.

• Strategic focus on expanding high-margin sub-brands, accelerating digital transformation, and optimizing the retail footprint with up to 180 store closures planned in 2025.

• Sub-brands are outperforming, driving new and younger customer acquisition, and are expected to comprise nearly a third of business by 2026.

• Digital channel now accounts for nearly 70% of total demand, with online sales expected to reach 75% by 2026.

Financial highlights

• Gross profit was $101.4 million, with gross margin at 38.1%, down from 41.3% year-over-year due to planned promotions and lower sales.

• SG&A expenses reduced to $70 million (26.3% of sales), while marketing expenses rose 19.9% to $15.4 million.

• Net income was $5.9 million ($0.06 per share), compared to $12.2 million ($0.12 per share) last year.

• Adjusted EBITDA was $27.1 million (10.2% margin), down from $38.2 million (13.7% margin) last year.

• Ended Q1 with $23.7 million in cash and $141 million in total liquidity.

Outlook and guidance

• FY2025 net sales expected between $1.03 billion and $1.055 billion, reflecting a $40–$45 million impact from pausing the footwear business.

• Adjusted EBITDA guidance for FY2025 is $95–$105 million, with $20 million in tariff headwinds to be offset by expense reductions.

• Q2 guidance: net sales of $250–$265 million and adjusted EBITDA of $18–$24 million.

• Store closures and cost reductions expected to drive 150–250 basis points of EBITDA margin expansion in FY2026 and beyond.

• Capital expenditures for FY2025 expected to be $10–$15 million, focused on technology, digital, store refreshes, and fulfillment.