Torrid (CURV) Q4 2025 earnings summary

Executive summary

• Exceeded Q4 expectations with net sales of $275.6M and adjusted EBITDA of $16.7M, with net loss improving to $3M from $4.1M last year.

• Full year net sales declined 4.2% to $1.10B, but net income rose to $16.3M from $11.6M last year.

• Strong year-end cash position of $48.5M and total liquidity of $158M.

• Strategic focus on product innovation, sub-brand growth, and store optimization to drive customer engagement and long-term growth.

Financial highlights

• Q4 net sales were $275.6M, down from $293.5M last year, but up 1.4% excluding the 53rd week in FY23.

• Comparable sales declined 0.8%, a significant sequential improvement.

• Gross profit was $92.6M (33.6% margin), down from $101.2M (34.5%) last year, mainly due to lower volume from the extra week in FY23.

• Adjusted EBITDA rose to $16.7M from $16.4M, with margin expanding 50 bps to 6.1%.

• Operating cash flow doubled to $77.4M year-over-year.

Outlook and guidance

• FY25 sales expected between $1.08B and $1.10B; adjusted EBITDA projected at $100M–$110M.

• Q1 sales guidance: $264M–$274M; adjusted EBITDA: $24M–$28M.

• Capex forecasted at $15M–$20M, focused on tech upgrades, store refreshes, and infrastructure, including 4–8 new stores.

• Guidance reflects macroeconomic challenges, prudent consumer outlook, and higher labor costs; excludes potential tariff volatility.