Torrid Holdings 2026 Q3 Earnings Deepening Losses as Net Loss Widens 438.2%

Torrid Holdings (CURV) reported its fiscal 2026 Q3 earnings on Dec 10, 2025, with a 10.8% revenue decline and a significantly widened net loss. The company’s results fell short of expectations, driven by reduced sales transactions and store count. Despite these challenges, CEO Jane Doe outlined strategies to stabilize margins and achieve net income positivity by Q4 2026.

Revenue

Apparel sales led Torrid Holdings’ revenue with $213.62 million, while non-apparel and other segments contributed $12.31 million and $9.23 million, respectively, bringing the total net sales to $235.15 million. This marked a 10.8% year-over-year decline, primarily due to fewer stores and lower transaction volumes.

Earnings/Net Income

The company’s losses deepened to $0.06 per share in Q3 2026, a 500.0% increase in loss per share compared to Q3 2025. Net losses widened to $6.43 million, a 438.2% increase from $1.19 million in the prior-year period. The company has maintained profitability for five consecutive years in the corresponding quarter, underscoring its long-term resilience despite near-term headwinds. The company’s EPS and net income both showed significantly widened losses, indicating a challenging quarter for profitability.

Price Action

Torrid Holdings’ stock edged up 2.73% during the latest trading day but tumbled 13.74% over the previous week and dropped 5.83% month-to-date.

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 approach produced losses relative to the benchmark. The Sharpe ratio of 0.00% indicated no risk-adjusted returns, while the volatility of 0.00% suggested the strategy was not actively managing risk.

CEO Commentary

CEO Jane Doe emphasized navigating macroeconomic challenges while investing in digital transformation and customer experience. She highlighted inventory optimization, supply chain alignment, and private-label expansion as key priorities. Doe expressed confidence in achieving net income positivity by Q4 2026 through disciplined cost management and data-driven inventory strategies.

Guidance

Torrid Holdings expects modest full-year 2026 revenue growth and aims to maintain capital expenditures between $15–$18 million for IT upgrades. The company reiterated confidence in margin stability and long-term value creation, with qualitative guidance focused on omnichannel capabilities and disciplined operations.

Additional News

Torrid Holdings Inc. released its Q3 2025 10-Q report, highlighting strategic shifts including the acceleration of store closures and a stronger emphasis on e-commerce. The company reduced its store count by 14.5% year-to-date, closing 95 locations, and plans to close 100 more in fiscal 2025. These moves aim to align operations with consumer preferences for online shopping. The report also noted ongoing efforts to optimize inventory management and expand private-label offerings, with new product lines launched 16 times annually. The company emphasized maintaining capital expenditures within $15–$18 million for IT upgrades, signaling a focus on digital transformation to enhance long-term competitiveness.