Torrid's Q1 sales decline, strategic shifts underway

The US-based direct-to-consumer (D2C) apparel, intimates, and accessories brand Torrid Holdings Inc. (Torrid) has announced its financial results for the first quarter of fiscal year 2026, ended May 2, 2026, reporting net sales that surpassed internal projections.

Total net sales for the period reached 245.82 million dollars, exceeding company guidance despite representing a 7.63 percent decrease compared to 266.02 million dollars in the first quarter of the prior fiscal year. Comparable sales for the 13-week period declined by 1.73 percent.

Lisa Harper, chief executive officer of the US clothing retailer, stated that the results reflect disciplined execution across strategic initiatives. Harper noted that the initial deployment of an opening price point strategy has driven customer conversions and increased basket sizes, positioning the business for comparable sales growth in the second half of the year.

Profitability trends and store network optimization

The retailer experienced a contraction across its main profit metrics during the first quarter. Gross profit margin fell to 35.31 percent, down from 38.12 percent in the first quarter of fiscal year 2025.

Net income narrowed to 0.42 million dollars, compared to a net income of 5.92 million dollars, or 0.06 dollars per share, in the same period last year.

Adjusted EBITDA stood at 17.61 million dollars, representing 7.23 percent of net sales, which landed at the upper end of company expectations. This performance compares to an adjusted EBITDA of 27.12 million dollars, or 10.23 percent of net sales, in the first quarter of last year.

As part of its ongoing store footprint optimization project, Torrid closed 20 physical retail locations during the quarter. The specialized womenswear company ended the financial period with a total fleet of 463 stores.

Marketing infrastructure and strategic outlook

Following the restructuring of its product and pricing baseline, the corporate strategy for the remainder of fiscal year 2026 will prioritize customer file growth. The group plans to enhance acquisition, reactivation, and retention through artificial intelligence-driven personalization and upgraded paid media spend optimization.

The brand also intends to relaunch its customer engagement platform, Casting Call, in July 2026 as a permanent ambassadorship project. The initiative will be scaled nationally via marketing activations in Times Square alongside domestic instore experiences.

For the second quarter of fiscal year 2026, Torrid projects net sales to fall between 232 million dollars and 240 million dollars. Adjusted EBITDA for the three-month period is expected to range from 12 million dollars to 16 million dollars.

For the full fiscal year 2026, the company estimates total net sales between 940 million dollars and 960 million dollars. Full-year adjusted EBITDA is anticipated to arrive between 65 million dollars and 75 million dollars.