Torrid Q2 sales down 7.7 percent

Torrid Holdings Inc., a direct-to-consumer apparel brand for women sizes 10 to 30, reported net sales decrease of 7.7 percent to 262.8 million dollars for the second quarter ended August 2, 2025. Comparable sales also decreased by 6.9 percent compared to the same period last year.

The company reported a net income of 1.6 million dollars, or 2 cents per share, a drop from 8.3 million dollars, or 8 cents per share, in the prior year's quarter. Additionally, adjusted EBITDA was 21.5 million dollars, a decrease from 34.6 million dollars in the second quarter of last year.

Despite the decline in sales, Torrid's CEO, Lisa Harper, said that the company is actively focusing on sub-brands to bring more innovation and diversity to its product assortments. The company is also increasing its marketing investment to drive awareness and consideration in the second half of the year.

For the full year, the company's updated guidance reflects these additional marketing investments and new tariff rates. The final tariff announcements in July are expected to result in up to 10 million dollars in additional expenses, contributing to an estimated 15 million dollars headwind to adjusted EBITDA. However, Torrid has already mitigated 40 million dollars of tariff costs this year through disciplined sourcing strategies and comprehensive expense optimisation.

Looking ahead, the company's priorities include elevating its assortment, expanding its digital marketing, and optimising its store fleet to improve efficiency and the customer experience. Torrid plans to close up to 180 stores to better align with current demand and sales channels.

For the third quarter of fiscal 2025, the company expects net sales to be between 235 million dollars and 245 million dollars, with adjusted EBITDA between 16 million dollars and 21 million dollars. For the full fiscal year, Torrid anticipates net sales to be between 1.015 billion dollars and 1.030 billion dollars, and adjusted EBITDA to be between 80 million dollars and 90 million dollars.