Torrid Provides Financial Update for First Quarter 2026

Torrid Holdings Inc. presented its financial outcomes for the initial quarter of fiscal year 2026, encompassing the period concluding on May 4, 2024. During a recent conference call, company executives elaborated on their ongoing strategy to enhance customer engagement and optimize operational efficiency. The firm experienced a net sales figure of $279 million for the quarter. This represents a decrease from $306 million recorded in the corresponding period of the previous year. According to Yahoo Finance, this shift reflects evolving market dynamics and consumer spending patterns. Gross profit for the quarter amounted to $96 million, a reduction from $113 million in the prior year's first quarter. The gross margin saw a slight contraction, moving from 36.9% to 34.4% year-over-year. Management attributed this largely to strategic promotional activities and increased inventory valuation adjustments compared to the previous year. Selling, general, and administrative expenses (SG&A) totaled $94 million, or 33.7% of net sales, marking an increase from $90 million, or 29.4% of net sales, in the first quarter of fiscal 2025. This rise is primarily due to higher store operating expenses stemming from an increased store count and elevated marketing costs. Despite these shifts, Torrid reported a net loss of $1 million, an improvement from a net loss of $2 million in the same quarter last year. The adjusted EBITDA for the quarter stood at $7 million, down from $23 million in the first quarter of the prior fiscal year. The company's diluted earnings per share came in at negative $0.01. Inventory at the close of the quarter was $161 million, a decline from $185 million at the end of the previous fiscal year, indicating a controlled approach to stock management. Capital expenditures for the period were $3 million, a decrease from $9 million year-over-year, reflecting a more strategic allocation of investment. During the call, leadership also reaffirmed their financial outlook for the entire fiscal year 2026. The guidance projects net sales to range between $1.115 billion and $1.135 billion. Furthermore, the company anticipates an adjusted EBITDA between $68 million and $78 million for the full fiscal year. This forward-looking statement suggests a continued focus on profitability amidst a dynamic retail landscape. Leadership emphasized their commitment to enhancing customer experience and driving long-term value.