Torrid net sales fall 11.8 percent in second quarter

US direct-to-consumer (D2C) apparel, intimates, and accessories brand Torrid Holdings Inc. (Torrid) reported an 11.8 percent decrease in net sales to 231.7 million dollars for the second quarter ending August 1, 2026, compared to 262.8 million dollars in the second quarter of last year. Comparable sales decreased 6.3 percent during the period.

Gross profit margin reached 38.7 percent compared to 35.6 percent in the second quarter of last year. During the quarter, Torrid received 11.4 million dollars in International Emergency Economic Powers Act (IEEPA) tariff benefits, including 11.1 million dollars recorded as a reduction in cost of goods sold and 0.3 million dollars recognized as related interest income. Excluding the benefit of tariff refunds received, gross profit margin stood at 33.9 percent.

“Our second quarter results were in line with guidance,” stated Torrid chief executive officer, Lisa Harper. “Sales trends improved meaningfully as the quarter progressed, with July marking a clear inflection point. This improvement reflects early traction from our customer growth strategy and the merchandising course corrections we have made including a better balance of core and fashion assortments and a strengthening inventory position in footwear.”

Earnings and store footprint

Net income for the second quarter was 5.2 million dollars, or 0.05 dollars per share, compared to net income of 1.6 million dollars, or 0.02 dollars per share, in the second quarter of last year.

Adjusted EBITDA reached 23.3 million dollars, representing 10 percent of net sales, compared to 21.5 million dollars, or 8.2 percent of net sales, in the prior-year period. Excluding the impact of tariff refunds received, adjusted EBITDA was 12.1 million dollars, or 5.2 percent of net sales.

During the second quarter, Torrid closed six stores as part of its Store Footprint Optimization Project. Total store count at quarter end was 457 locations.

Full-year outlook

Harper added: “We are raising our full-year outlook to reflect the tariff refund benefit received in the quarter. Excluding this benefit, our outlook is unchanged. With a more productive store base and disciplined operating structure supporting the business, we remain confident in our path to sustainable comparable sales growth in the second half of the year.”

For the third quarter of fiscal 2026, Torrid expects net sales to range between 230 million dollars and 235 million dollars, with adjusted EBITDA forecasted between 15 million dollars and 20 million dollars.

For full-year fiscal 2026, Torrid projects net sales between 940 million dollars and 960 million dollars. Full-year adjusted EBITDA is expected to fall between 76 million dollars and 86 million dollars, with capital expenditures projected between 8 million dollars and 10 million dollars.