Torrid (CURV) Q3 2026 earnings summary

Executive summary

• Net sales for Q3 were $235.2 million, a 10.8% year-over-year decrease, with comparable sales down 8.3% and a net loss of $6.4 million compared to $1.2 million last year.

• Execution missteps in tops and jackets, a pause in footwear, and deeper-than-planned promotions offset growth in denim, non-denim, dresses, and intimates.

• Store optimization continued, with 74 closures year-to-date and 560 stores remaining, targeting up to 180 closures for the year.

• Sub-brand strategies and corrective actions are underway, with early signs of improvement and a focus on online growth.

• Store optimization and cost reductions are expected to drive EBITDA margin expansion and liquidity in 2026.

Financial highlights

• Gross profit for Q3 was $82.2 million (34.9% margin), down from $95.2 million (36.1%) last year.

• Adjusted EBITDA was $9.8 million (4.2% margin), down from $19.6 million (7.4%) a year ago.

• SG&A expenses fell by $8.6 million to $66.3 million, with marketing expenses rising 20.4% to 6.7% of net sales.

• Cash and equivalents at quarter end were $17.2 million, with $291.3 million in outstanding debt and $86.2 million available under the ABL Facility.

• Net cash used in operating activities for the nine months was $7.1 million, compared to $65.4 million provided last year.

Outlook and guidance

• Full-year net sales expected between $995 million and $1.002 billion, with adjusted EBITDA guidance of $59–$62 million.

• Capital expenditures projected at $13–$15 million, focused on infrastructure and technology.

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

• No substantive recovery in tops or shoes expected in Q4; improvement anticipated in Q1 2026.

• Store closures and cost reductions expected to drive substantial EBITDA margin expansion and liquidity in 2026.