Torrid (CURV) Q2 2026 earnings summary

Executive summary

• Q2 FY25 net sales were $262.8 million, down 7.7% year-over-year, with comparable sales declining 6.9% and net income falling to $1.6 million from $8.3 million last year.

• Adjusted EBITDA was $21.5 million (8.2% margin), down from $34.6 million (12.2% margin) year-over-year.

• Strategic initiatives include expanding sub-brands, increased digital and influencer marketing, and a retail optimization plan with up to 180 store closures.

• Sub-brands are expected to reach 25%-30% of assortment next year, supporting higher margins and customer engagement.

• Store count reduced to 575 at quarter-end, with 59 closures year-to-date and up to 180 planned for FY25.

Financial highlights

• Gross profit was $93.5 million (35.6% margin), down from $110.3 million (38.7% margin) year-over-year.

• SG&A expenses improved by $6.3 million, now 26.8% of sales; marketing expenses decreased 1.5% to $12.8 million.

• Net income was $1.6 million ($0.02/share), down from $8.3 million ($0.08/share) last year.

• Cash and equivalents ended at $21.5 million; total liquidity was $111.7 million, with $288.4 million in debt.

• Net cash used in operating activities for the first six months was $2.3 million, compared to $68.4 million provided last year.

Outlook and guidance

• FY25 net sales expected between $1.015 billion and $1.030 billion; full-year adjusted EBITDA at $80–$90 million.

• Q3 net sales guidance: $235–$245 million; Q3 adjusted EBITDA: $16–$21 million.

• Up to 180 store closures planned to align with demand and sales channels.

• Capital expenditures for FY25 projected at $10–$15 million, focused on digital, fulfillment, and technology.

• Tariff impact estimated at $50 million, with $40 million mitigated and $10 million expected exposure.