Torrid (CURV) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2024 declined 4.2% year-over-year to $263.8 million, with comparable sales down 6.5% and a net loss of $1.2 million, but gross profit and margin improved due to reduced product costs and higher regular-priced sales.

• Inventory was reduced by 19% year-over-year, ending with $44 million in cash and total liquidity of $151.8 million.

• Adjusted EBITDA for Q3 was $19.6 million (7.4% of net sales), up from $19.4 million (7.0%), and $92.4 million for the nine-month period.

• Store count increased to 655, with two new stores opened and four closed in Q3, reflecting ongoing optimization and expansion.

• New product initiatives, sub-brands, and leadership changes are expected to drive growth and broaden the assortment, with a focus on both core and new categories.

Financial highlights

• Gross profit margin for Q3 rose to 36.1% (up 285 basis points year-over-year), driven by lower product costs and more regular-priced sales.

• Net loss was $1.2 million (-$0.01 per share), improved from a $2.7 million loss last year.

• Adjusted EBITDA margin for Q3 was 7.4%, and for the nine months was 11.2%, up from 10.5% year-over-year.

• SG&A expenses were 28.4% of net sales, up from 26.1% last year, mainly due to performance bonuses and legal expenses.

• Marketing expenses for Q3 were $13.1 million, up 2.5% year-over-year, with increased social media and SMS spend.

Outlook and guidance

• Q4 net sales expected between $255 million and $270 million; Adjusted EBITDA forecasted at $9 million to $15 million.

• Full-year net sales guidance is $1.083 billion to $1.098 billion, with Adjusted EBITDA of $101 million to $107 million.

• Fiscal 2025 is expected to deliver low to mid-single digit comparable sales growth and improved EBITDA margins.

• Capital expenditures for FY2024 projected at $20–$25 million, including technology and 12–16 new store openings.

• Management expects cash from operations and available credit to be sufficient for at least the next 12 months.