Torrid (CURV) Q4 2026 earnings summary

Executive summary

• Fiscal 2025 net sales reached $1 billion, meeting the top end of guidance, and Adjusted EBITDA was $63.6 million, exceeding expectations.

• Completed 151 store closures in 2025, optimizing the channel and improving profitability, with 85% of planned closures done and 11 more in Q1 2026.

• Launched five sub-brands generating $70 million in 2025 sales, projected to grow 60% to $110 million in 2026, with higher margins and customer acquisition benefits.

• Strategic focus for 2026 is accelerating customer file growth through retention, reactivation, and acquisition, leveraging data-driven marketing and product initiatives.

• Product assortment was restructured around core franchises and fabrics valued by customers.

Financial highlights

• Q4 net sales were $236.2 million, down 14.3% year-over-year; comparable sales declined 10%, with a 460 basis point negative impact from the paused footwear business.

• Q4 gross profit was $70.9 million (30% margin), down from $92.6 million (33.6% margin) last year, reflecting promotional activity and deleverage.

• Q4 net loss was $8.1 million ($0.08/share) vs. $3 million ($0.03/share) last year; adjusted EBITDA was $5.1 million (2.2% margin) vs. $16.7 million (6.1% margin) prior year.

• Full-year net loss was $7.0 million, compared to net income of $16.3 million last year.

• Ended the year with $20 million in cash and $31 million drawn on the revolver; total liquidity was $84.9 million.

Outlook and guidance

• Fiscal 2026 net sales expected at $940–$960 million, with adjusted EBITDA of $65–$75 million, representing up to 140 basis points of margin expansion.

• Q1 2026 sales expected at $236–$244 million and adjusted EBITDA of $14–$18 million.

• Capital expenditures planned at $8–$10 million for 2026.

• Store optimization program to be substantially complete by mid-2026, with up to 30 additional closures.

• Guidance assumes ongoing macroeconomic challenges and does not factor in tariff volatility.