Torrid Holdings 2026 Q1 Earnings Misses Targets with Net Income Plunging 51.2%

Torrid Holdings (CURV) reported its fiscal 2026 Q1 earnings on June 9th, 2025. The company experienced a 4.9% decrease in total revenue, amounting to $265.96 million, compared to $279.77 million in 2025 Q1. Torrid Holdings' earnings results fell short of expectations, with a significant decline in both earnings per share (EPS) and net income. The company has adjusted its guidance to reflect these results, projecting a challenging financial outlook for the upcoming quarters. Despite these setbacks, Torrid remains committed to its strategic initiatives to drive growth and transformation.

Revenue

Torrid Holdings' total revenue for Q1 2026 declined by 4.9% to $265.96 million from $279.77 million in Q1 2025. The apparel segment generated $239.79 million, while the non-apparel segment contributed $18.25 million. Additionally, other revenue sources added $7.92 million, culminating in total net sales of $265.96 million.

Earnings/Net Income

Torrid Holdings' earnings per share decreased by 50.0% to $0.06 in Q1 2026, from $0.12 in Q1 2025. Net income similarly fell by 51.2%, reaching $5.94 million compared to $12.17 million in the previous year. This performance indicates a notable decline in profitability.

Price Action

The stock price of Torrid Holdings edged down 0.41% during the latest trading day, tumbled 8.22% during the most recent full trading week, and dropped 6.48% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing CURV stock following a revenue beat and holding for 30 days proved ineffective, yielding a return of -46.10%. This approach significantly underperformed the benchmark, which registered a return of 32.14% over the same period. The strategy's poor performance was underscored by a Sharpe ratio of -0.17 and a maximum drawdown of -92.62%, reflecting the high volatility and substantial losses experienced by investors. Overall, this investment strategy not only failed to deliver positive returns but also exposed investors to considerable risk compared to the benchmark's performance during the period.

CEO Commentary

Lisa Harper, CEO of Torrid Holdings Inc., expressed pride in the company's strategic focus. She highlighted successful sub-brand strategies attracting new, younger customers and emphasized digital transformation, with 70% of demand from digital channels. Plans to close up to 180 underperforming stores aim to reduce costs and boost growth in customer acquisition and omnichannel enhancements. Harper remains optimistic about the company's future.

Guidance

For Q2 fiscal 2025, Torrid anticipates net sales between $250 million and $265 million, with adjusted EBITDA ranging from $18 million to $24 million. Full-year guidance projects net sales between $1.030 billion and $1.055 billion, with adjusted EBITDA of $95 million to $105 million. A $20 million net tariff impact is expected, offset by cost reductions and store optimizations. A revenue reduction of $40 million to $45 million is anticipated due to a pause in the China-sourced shoe category.

Additional News

Torrid Holdings Inc. announced its participation in the 27th Annual ICR Conference, where CEO Lisa Harper and other executives conducted meetings with investors. The company also launched a secondary public offering of 8 million shares, priced at $4.00 per share, managed by major financial institutions such as BofA Securities and Goldman Sachs. Additionally, Torrid revealed the winner of its 2024 nationwide model casting call, Essence Sugar, who will feature in a 2025 campaign and receive prizes, including a year's wardrobe. These initiatives highlight Torrid's efforts to strengthen its market presence and investor relations.