Torrid Q2 net sales fall 7.7%, EBITDA misses estimates

Torrid Holdings

04/09/2025 21:14

Overview

Torrid fiscal Q2 net sales fall 7.7% to $262.8 mln, in line with company guidance but ahead of analysts' expectations

Adjusted EBITDA for fiscal Q2 misses analysts' expectations, per LSEG data

Net income for fiscal Q2 declines to $1.6 mln from $8.3 mln last year

Outlook

Torrid expects Q3 net sales between $235 mln and $245 mln

Company anticipates Q3 adjusted EBITDA between $16 mln and $21 mln

Torrid sees full-year net sales between $1.015 bln and $1.030 bln

Company expects full-year adjusted EBITDA between $80 mln and $90 mln

Result Drivers

SUB-BRANDS STRATEGY - Torrid attributes positive market response to its strategic focus on sub-brands

TARIFF MANAGEMENT - Co mitigated $40 mln in tariff costs through sourcing strategies, though new tariffs pose a $10 mln expense challenge

MARKETING INVESTMENTS - Increased marketing spend planned to drive awareness and customer acquisition in the latter half of the year

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$262.81 mln
$256.30 mln (5 Analysts)
Q2 Net Income
$1.57 mln
Q2 Adjusted EBITDA
Miss
$21.52 mln
$24.10 mln (3 Analysts)
Q2 EBIT
$10.16 mln
Q2 Gross Profit
$93.49 mln
Q2 Pretax Profit
$2.05 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the apparel & accessories retailers peer group is "buy."

Wall Street's median 12-month price target for Torrid Holdings Inc is $3.00, about 21.3% above its September 3 closing price of $2.36

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 38 three months ago

Press Release: ID:nBw846LyKa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)