Torrid Reports Third Quarter 2025 Results
CITY OF INDUSTRY, Calif.--( BUSINESS WIRE)--Torrid Holdings Inc. (“Torrid” or the “Company”) (NYSE: CURV), a direct-to-consumer apparel, intimates, and accessories brand in North America for women sizes 10 to 30, today announced its financial results for the quarter ended November 1, 2025.
“Our third quarter results fell short of our expectations due to execution missteps that were largely within our control. While several core categories delivered strong comparable growth, these gains were more than offset by an imbalance in our assortment mix. We have already taken decisive corrective actions and are seeing early signs of improvement,” said Lisa Harper, Chief Executive Officer.
“Looking ahead, we have clear visibility into our path forward and are executing with urgency. We have strengthened our merchandising guardrails, rebalanced our assortment architecture, reintroduced a more profitable footwear program, and accelerated chase orders in key core categories. Our sub-brand strategy remains a powerful growth engine, our store optimization program is performing exceptionally well, and we’re investing behind customer acquisition, loyalty, and brand-building initiatives. With these actions underway, we believe we are well positioned to deliver improved performance, strengthen profitability, and create long-term value for our customers and shareholders,” concluded Harper.
Financial Highlights for the Third Quarter of Fiscal 2025
Third Quarter Fiscal 2025 Financial and Operating Metrics
Three Months Ended
November 1,
2025
November 2,
2024
Net sales (in thousands)
$
235,153
$
263,766
Comparable sales (A)
(8
)%
(7
)%
Number of stores (as of end of period)
560
655
Net loss (in thousands)
$
(6,426
)
$
(1,194
)
Adjusted EBITDA (B) (in thousands)
$
9,776
$
19,584
Refer to “Non-GAAP Reconciliation” below for a reconciliation of net loss to Adjusted EBITDA (2).
Balance Sheet and Cash Flow
Cash and cash equivalents at the end of the third quarter of fiscal 2025 totaled $17.2 million. Total liquidity at the end of the quarter, including available borrowing capacity under our revolving credit agreement, was $103.4 million.
Net cash used in operating activities for the nine-month period ended November 1, 2025 was $7.1 million, compared to net cash provided by operating activities of $65.4 million for the nine-month period ended November 2, 2024.
Outlook
For the full year fiscal 2025 the Company expects:
The above outlook is based on several assumptions, including, but not limited to, the macroeconomic challenges in the industry in fiscal 2025. The above outlook does not take into consideration the volatility of tariff changes or its impact on inflation or consumer demand. See “Forward-Looking Statements” for additional information.
Call Details
A conference call to discuss the Company’s fiscal 2025 third quarter results is scheduled for December 3, 2025, at 4:30 p.m. ET. Those who wish to participate in the call may do so by dialing (877) 407-9208 or (201) 493-6784 for international callers. The conference call will also be webcast live at https://investors.torrid.com. For those unable to participate, a replay of the conference call will be available approximately three hours after the conclusion of the call until December 17, 2025.
Notes
Comparable sales for any given period are defined as the sales of Torrid’s e-Commerce operations and stores that it has included in its comparable sales base during that period. The Company includes a store in its comparable sales base after it has been open for 15 full fiscal months. If a store is closed during a fiscal year, it is only included in the computation of comparable sales for the full fiscal months in which it was open. Partial fiscal months are excluded from the computation of comparable sales. We also determine when certain store remodels and relocations are reintegrated into our comparable sales base. Comparable sales for the three-month period and nine-month period ended November 2, 2024 compare sales for the 13- and 39-week periods ended November 2, 2024, respectively, with sales for the 13- and 39-week periods ended November 4, 2023. We apply current year foreign currency exchange rates to both current year and prior year comparable sales to remove the impact of foreign currency fluctuation and achieve a consistent basis for comparison. Comparable sales allow us to evaluate how our unified commerce business is performing exclusive of the effects of non-comparable sales and new store openings.
Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” for additional information on non-GAAP financial measures and the accompanying table for a reconciliation to the most comparable GAAP measure. The Company does not provide reconciliations of the forward-looking non-GAAP measures of Adjusted EBITDA to the most directly comparable forward-looking GAAP measure because the timing and amount of excluded items are unreasonably difficult to fully and accurately estimate. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.
About Torrid
TORRID is a direct-to-consumer brand in North America dedicated to offering a diverse assortment of stylish apparel, intimates, and accessories skillfully designed for the curvy woman. Specializing in sizes 10 to 30, our primary focus is on providing fashionable, comfortable, and affordable options that meet the unique needs of our customers. Our extensive collection features high quality merchandise, including tops, bottoms, denim, dresses, intimates, activewear, footwear, and accessories. Our products are exclusive to us, and each product is meticulously crafted to cater to the needs of the curvy woman, empowering her to love the way she looks and feels. Our collections are artfully curated to suit all aspects of our customers’ lives, including casual weekends, work, dressy and special occasions. Understanding the importance of affordability, we aim to keep our prices reasonable without compromising on quality. This allows us to build a meaningful connection with our customers, distinguishing us from other brands that often overlook plus- and mid-size consumers. Our brand experience and product offerings establish us as a differentiated and reliable choice for plus- and mid-size customers, which we believe sets us apart in the market. We strive to be everything our customer needs in her closet, consistently delivering products that make her feel confident and stylish.
Non-GAAP Financial Measures
In addition to results determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”), management utilizes certain non-GAAP performance measures, such as Adjusted EBITDA, for purposes of evaluating ongoing operations and for internal planning and forecasting purposes. We believe that these non-GAAP operating measures, when reviewed collectively with our GAAP financial information, provide useful supplemental information to investors in assessing our operating performance.
Adjusted EBITDA is a supplemental measure of our operating performance that is neither required by, nor presented in accordance with, GAAP and our calculations thereof may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA represents GAAP net income (loss) plus interest expense less interest income, net of other expense (income), plus provision for (benefit from) income taxes, depreciation and amortization (“EBITDA”), and share-based compensation, non-cash deductions and charges, and other expenses.
We believe Adjusted EBITDA facilitates operating performance comparisons from period to period by isolating the effects of certain items that vary from period to period without any correlation to ongoing operating performance. We also use Adjusted EBITDA as one of the primary methods for planning and forecasting the overall expected performance of our business and for evaluating on a quarterly and annual basis, actual results against such expectations.
Further, we recognize Adjusted EBITDA as a commonly used measure in determining business value and, as such, use it internally to report and analyze our results and as a benchmark to determine certain non-equity incentive payments made to executives.
Adjusted EBITDA has limitations as an analytical tool. This measure is not a measurement of our financial performance under GAAP and should not be considered in isolation or as an alternative to or substitute for net income (loss), income (loss) from operations, earnings (loss) per share or any other performance measures determined in accordance with GAAP or as an alternative to cash flows from operating activities as a measure of our liquidity. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Forward-Looking Statements
Certain statements made in this earnings release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this earnings release are forward-looking statements. Forward-looking statements reflect our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely” and other words and terms of similar meaning (including their negative counterparts or other various or comparable terminology).
For example, all statements we make relating to our expected fourth quarter of fiscal 2025, our full year fiscal 2025 performance (including, without limitation, all information under the heading “Outlook”) and our plans and objectives for future operations, growth or initiatives are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those that we expected, including:
The outcome of the events described in any of our forward-looking statements are also subject to risks, uncertainties and other factors described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on April 1, 2025 and in our other filings with the SEC and public communications. You should evaluate all forward-looking statements made in this communication in the context of these risks and uncertainties.
We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the effect of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. We caution you that the important factors referenced above may not include all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the outcomes or affect us or our operations in the way we expect. The forward-looking statements included in this earnings release are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise except to the extent required by law. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.
Investors and others should note that we may announce material information to our investors using our investor relations website ( https://investors.torrid.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media, to communicate with our investors and the public about our company, our business and other issues. It is possible that the information that we post on social media could be deemed to be material information. We therefore encourage investors to visit these websites from time to time. The information contained on such websites and social media posts is not incorporated by reference into this filing. Further, our references to website URLs in this filing are intended to be inactive textual references only.
TORRID HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
(In thousands, except per share data)
Three Months Ended
November 1,
2025
November 2,
2024
Net sales
$
235,153
$
263,766
Cost of goods sold
152,977
168,609
Gross profit
82,176
95,157
Selling, general and administrative expenses
66,256
74,899
Marketing expenses
15,715
13,056
Income from operations
205
7,202
Interest expense
7,906
8,784
Interest income, net of other expense (income)
259
(362
)
Loss before income taxes
(7,960
)
(1,220
)
Benefit from income taxes
(1,534
)
(26
)
Net loss
$
(6,426
)
$
(1,194
)
Net loss per share:
Basic
$
(0.06
)
$
(0.01
)
Diluted
$
(0.06
)
$
(0.01
)
Weighted average number of shares:
Basic
99,161
104,698
Diluted
99,161
104,698
Other comprehensive loss:
Foreign currency translation adjustment
(161
)
(86
)
Total other comprehensive loss
(161
)
(86
)
Comprehensive loss
$
(6,587
)
$
(1,280
)
TORRID HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands, except share and per share data)
November 1,
2025
February 1,
2025
November 2,
2024
Assets
Current assets:
Cash and cash equivalents
$
17,213
$
48,523
$
43,953
Restricted cash
399
399
399
Inventory
128,817
148,493
138,261
Prepaid expenses and other current assets
27,102
24,507
33,343
Prepaid income taxes
15,135
4,244
6,617
Total current assets
188,666
226,166
222,573
Property and equipment, net
58,305
77,669
85,569
Operating lease right-of-use assets
113,280
140,651
149,732
Deposits and other noncurrent assets
20,408
18,935
18,027
Deferred tax assets
13,877
16,620
8,681
Intangible asset
8,400
8,400
8,400
Total assets
$
402,936
$
488,441
$
492,982
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable
$
66,010
$
72,378
$
77,478
Accrued and other current liabilities
98,888
125,743
116,650
Operating lease liabilities
32,712
40,505
36,312
Borrowings under credit facility
14,870
—
—
Current portion of term loan
16,144
16,144
16,144
Due to related parties
3,421
8,362
4,330
Income taxes payable
713
—
62
Total current liabilities
232,758
263,132
250,976
Noncurrent operating lease liabilities
107,206
134,481
145,126
Noncurrent debt, net
260,300
272,409
276,445
Deferred compensation
3,926
3,913
3,735
Other noncurrent liabilities
5,261
5,595
5,986
Total liabilities
609,451
679,530
682,268
Commitments and contingencies
Stockholders’ Deficit:
Preferred shares: $0.01 par value; 5,000,000 shares authorized; no shares issued and outstanding at November 1, 2025, February 1, 2025, and November 2, 2024
—
—
—
Common shares: $0.01 par value; 1,000,000,000 shares authorized; 105,227,850 and 99,196,942 shares issued and outstanding, respectively, at November 1, 2025; 104,859,266 shares issued and outstanding at February 1, 2025; and 104,732,148 shares issued and outstanding at November 2, 2024
1,053
1,049
1,049
Additional paid-in capital
143,573
140,029
138,532
Accumulated deficit
(330,188
)
(331,269
)
(328,281
)
Accumulated other comprehensive loss
(668
)
(898
)
(586
)
Common shares in treasury, at cost: 6,030,908 shares at November 1, 2025; no shares at February 1, 2025 and November 2, 2024
(20,285
)
—
—
Total stockholders’ deficit
(206,515
)
(191,089
)
(189,286
)
Total liabilities and stockholders’ deficit
$
402,936
$
488,441
$
492,982
TORRID HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
Nine Months Ended
November 1,
2025
November 2,
2024
OPERATING ACTIVITIES
Net income
$
1,081
$
19,306
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Write down of inventory
2,406
1,519
Operating right-of-use assets amortization
25,409
30,429
Depreciation and other amortization
27,817
27,842
Share-based compensation
3,972
4,531
Deferred taxes
2,744
—
Write off of excess operating lease liabilities against operating right-of-use-assets
(4,092
)
(1,294
)
Other
(329
)
337
Changes in operating assets and liabilities:
Inventory
17,359
2,052
Prepaid expenses and other current assets
(2,595
)
(11,114
)
Prepaid income taxes
(10,891
)
(4,056
)
Deposits and other noncurrent assets
(1,146
)
(3,375
)
Accounts payable
(7,357
)
31,876
Accrued and other current liabilities
(27,787
)
10,775
Operating lease liabilities
(29,076
)
(33,527
)
Other noncurrent liabilities
(422
)
(588
)
Deferred compensation
13
(1,739
)
Due to related parties
(4,941
)
(4,999
)
Income taxes payable
713
(2,609
)
Net cash (used in) provided by operating activities
(7,122
)
65,366
INVESTING ACTIVITIES
Purchases of property and equipment
(5,424
)
(12,617
)
Net cash used in investing activities
(5,424
)
(12,617
)
FINANCING ACTIVITIES
Proceeds from revolving credit facility
324,790
62,780
Principal payments on revolving credit facility
(309,920
)
(70,050
)
Deferred financing costs paid for revolving credit facility
(375
)
—
Principal payments on term loan
(13,125
)
(13,125
)
Proceeds from issuances under share-based compensation plans
199
704
Withholding tax payments related to vesting of restricted stock units and awards and exercise of non qualified stock options
(507
)
(675
)
Share repurchase, including excise tax paid
(20,085
)
—
Net cash used in financing activities
(19,023
)
(20,366
)
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash
259
(165
)
(Decrease) increase in cash, cash equivalents and restricted cash
(31,310
)
32,218
Cash, cash equivalents and restricted cash at beginning of period
48,922
12,134
Cash, cash equivalents and restricted cash at end of period
$
17,612
$
44,352
SUPPLEMENTAL INFORMATION
Cash paid during the period for interest related to the revolving credit facility and term loan
$
23,063
$
27,080
Cash paid during the period for income taxes
$
8,985
$
14,200
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Property and equipment purchases included in accounts payable and accrued liabilities
$
3,416
$
1,450
Excise tax from share repurchase included in accounts payable and accrued liabilities
$
200
$
—
Non-GAAP Reconciliation
The following table provides a reconciliation of net loss to Adjusted EBITDA for the periods presented (dollars in thousands):
Three Months Ended
November 1,
2025
November 2,
2024
Net loss
$
(6,426
)
$
(1,194
)
Interest expense
7,906
8,784
Interest income, net of other expense (income)
259
(362
)
Benefit from income taxes
(1,534
)
(26
)
Depreciation and amortization (A)
7,869
8,523
Share-based compensation (B)
1,132
685
Noncash deductions and charges (C)
200
112
Other expenses (D)
370
3,062
Adjusted EBITDA
$
9,776
$
19,584
During the three months ended November 1, 2025 and November 2, 2024, share-based compensation includes benefits of $0.1 million and $0.3 million, respectively, for awards that will be settled in cash as they are accounted for similar to awards settled in shares in accordance with ASC 718, Compensation—Stock Compensation.
Noncash deductions and charges includes noncash losses on property and equipment disposals and the net impact of noncash rent expense.
Other expenses include severance costs for certain key management positions, certain transaction and litigation fees, and the reimbursement of certain management expenses, primarily for travel, incurred by Sycamore on our behalf, which are not considered to be part of our core business.