Torrid Holdings 2026 Q3 Earnings Deepened Losses as Net Loss Surges 438.2%

Torrid Holdings (CURV) reported fiscal 2026 Q3 earnings on Dec 10, 2025, with results far below expectations. The company posted a 10.8% revenue decline to $235.15 million and a 438.2% widened net loss of $6.43 million, marking a sharp deterioration in profitability. Despite a 5-year history of quarterly profitability, the latest results highlight operational challenges.

Revenue

Apparel sales accounted for the lion’s share at $213.62 million, followed by non-apparel revenue of $12.31 million and other segments contributing $9.23 million, totaling $235.15 million in net sales. The 10.8% year-over-year revenue drop was driven by reduced transaction volumes and store closures, underscoring shifting consumer preferences toward e-commerce.

Earnings/Net Income

The company’s losses deepened to $0.06 per share in 2026 Q3, a 500.0% wider loss compared to $0.01 in 2025 Q3. Net loss expanded to $6.43 million, up 438.2% from $1.19 million the prior year. The earnings performance deteriorated sharply, with a 500% wider loss per share and a 438.2% increase in net loss, underscoring ongoing operational challenges.

Price Action

CURV’s stock edged up 2.73% in the latest trading day but fell 13.74% for the week and 5.83% month-to-date, reflecting mixed investor sentiment.

Post-Earnings Price Action Review

The strategy of buying CURV when earnings beat and holding for 30 days resulted in no return, significantly underperforming the benchmark. With a strategy return of 0.00% and an excess return of -55.19%, the strategy had no positive gains and actually produced losses relative to the benchmark. The Sharpe ratio was 0.00%, indicating no risk-adjusted returns, and the maximum drawdown was 0.00%, suggesting that the strategy did not experience any significant losses. However, the volatility was 0.00%, which is not a typical market behavior and may indicate that the strategy was not actively managing risk.

CEO Commentary

Torrid Holdings’ CEO emphasized strategic shifts to align with evolving consumer preferences, including accelerating store closures and prioritizing e-commerce. The company remains committed to disciplined cost management and optimizing its store network to enhance long-term profitability.

Guidance

The company guided to continued focus on store optimization and e-commerce growth in fiscal 2026, with no immediate plans for significant CAPEX investments. Management expects to maintain a disciplined approach to expenses while navigating macroeconomic uncertainties.

Additional News

Torrid Holdings Inc. announced in its 10-Q report a 14.5% reduction in store count, closing 95 locations year-to-date to 560 as of Nov 1, 2025. The company also highlighted its e-commerce channel as a key growth driver, alongside 16 new product launches annually to sustain customer engagement. These strategic moves aim to realign operations with consumer demand for digital shopping experiences.