Torrid raises FY26 guidance to reflect IEEPA tariff refund

Torrid Holdings

03/09/2026 21:15

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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/Mis  Actual    Consensu
           s                   s
                               Estimate
 Q2 Net    Miss      $231.73   $238.10
 sales               mln       mln (6
                               Analysts
                               )
 Q2 Net              $5.18      
 Income              mln       
 Q2        Beat      $23.25    $17.24
 Adjusted            mln       mln (6
 EBITDA                        Analysts
                               )
 Q2 EBIT             $14.54     
                     mln       
 Q2 Gross            $89.75     
 Profit              mln       
 Q2                  $6.55      
 Pretax              mln       
 Profit                        
    
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 .

    (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.)