Torrid raises FY26 guidance to reflect IEEPA tariff refund

Torrid Holdings

03/09/2026 21:15

Overview
U.S. women's apparel retailer's Q2 net sales fell 12%, missing analyst expectations
Q2 adjusted EBITDA beat consensus, helped by $11.1 mln IEEPA tariff refund benefit
Company raised full-year outlook to include tariff refund benefit recognized in Q2

Outlook
Torrid sees Q3 net sales between $230 mln and $235 mln
Company expects Q3 adjusted EBITDA between $15 mln and $20 mln
Torrid raises FY2026 outlook to reflect IEEPA tariff refund; underlying outlook unchanged

Result Drivers
TARIFF REFUND - Q2 adjusted EBITDA benefited from $11.1 mln IEEPA tariff refund recorded as reduction in cost of goods sold
MERCHANDISING CHANGES - Improved sales trends late in Q2 attributed to better balance of core and fashion assortments and stronger footwear inventory, per CEO Lisa Harper
CUSTOMER STRATEGY - Early traction from customer growth initiatives, including expansion into third-party marketplaces and opening price point strategy, helped drive conversion and value perception, per CEO Lisa Harper

Company press release: ID:nBwccjZlGa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net sales
Miss
$231.73 mln
$238.10 mln (6 Analysts)
Q2 Net Income
 
$5.18 mln
 
Q2 Adjusted EBITDA
Beat
$23.25 mln
$17.24 mln (6 Analysts)
Q2 EBIT
 
$14.54 mln
 
Q2 Gross Profit
 
$89.75 mln
 
Q2 Pretax Profit
 
$6.55 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 1 "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 $1.80, about 20.7% below its September 2 closing price of $2.27

Reuters Recommended Reads
Sept 3 - Duluth Holdings' Q2 profit rises on tariff refunds
Sept 3 - Victoria's Secret Q2 profit beats on stronger regular-price selling
Sept 2 - G-III Apparel Q2 profit beats estimates on margin expansion

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)