Torrid's 2025 performance: net sales decline amidst store optimization

For the fiscal year ended January 31, 2026, US-based apparel brand Torrid, which specialises in womenswear sizes 10 to 30, recorded annual net sales of 1.10 billion dollars, a 9.4 percent decrease versus the previous year.

The company underwent significant structural changes during the period, including the closure of 151 locations deemed unproductive. These closures were part of a wider Retail Store Optimization Project (RSOP) intended to improve the long-term health of the business. Consequently, the total store count at the end of the fiscal year stood at 483 units.

Torrid chief executive officer, Lisa Harper, described 2025 as a transformational year for the group. Harper noted that the company delivered net sales in line with guidance while exceeding the high end of its outlook for adjusted EBITDA. According to Harper, the brand launched five sub-brands during the year which generated approximately 70 million dollars in sales.

Fourth quarter performance and comparable sales

During the fourth quarter, net sales fell by 14.3 percent to 236.20 million dollars, while comparable sales decreased by 10 percent for the quarter. This contributed to a quarterly net loss of 8.10 million dollars, or 0.08 dollars per share, widening from a loss of 3 million dollars in the prior year.

The gross profit margin for the final quarter was 30 percent, adjusted EBITDA was 5.10 million dollars, representing 2.2 percent of net sales.

Harper stated that the company has fundamentally restructured its product assortment around core franchises. She expressed confidence that the foundation built in 2025 is beginning to take hold, citing trends observed in the fourth quarter and early weeks of the first quarter of fiscal 2026.

Annual earnings and outlook for 2026

For the full year of fiscal 2025, Torrid reported a net loss of 7 million dollars, or 0.07 dollars per share. This is a reversal from the net income of 16.30 million dollars recorded in the previous year. Annual comparable sales decreased 7 percent year-over-year, while the gross profit margin reached 34.8 percent compared to 37.5 percent in fiscal 2024.

Full-year adjusted EBITDA was 63.60 million dollars, or 6.4 percent of net sales. Although this reflected a decrease from 109.10 million dollars last year, the result outperformed internal projections.

Looking ahead to the first quarter of fiscal 2026, Torrid expects net sales to range between 236 million dollars and 244 million dollars. For the full fiscal year 2026, the company anticipates net sales between 940 million dollars and 960 million dollars.