Torrid Holdings Inc. (CURV) posted a net loss of $6.4 million for the quarter ended November 1, 2025, a sharp reversal from the $1.2 million loss reported a year earlier. Net sales fell 10.8% to $235.2 million, and comparable sales declined 8.3%. Adjusted EBITDA contracted to $9.8 million, a 46.7% drop from $19.6 million in Q3 2024. Earnings per share were $‑0.06, missing the consensus estimate of $‑0.02 and underscoring the company’s earnings weakness.
Gross‑margin pressure was a key driver of the earnings miss. The company’s gross profit margin slipped to 34.9% from 36.1% YoY, largely due to higher promotional activity and a lower sales base that eroded pricing power. The margin compression was compounded by cost inflation in key input categories, which further squeezed profitability.
CEO Lisa Harper acknowledged that “execution missteps that were largely within our control” contributed to the quarter’s underperformance. She highlighted an imbalance in the assortment mix, particularly in tops and jackets, and outlined corrective actions such as strengthening merchandising guardrails, rebalancing assortment architecture, reintroducing a more profitable footwear program, and accelerating chase orders in core categories.
In light of the results, Torrid lowered its full‑year 2025 outlook. Net sales guidance was trimmed to $995 million–$1.002 billion, and adjusted EBITDA guidance was cut to $59 million–$62 million. The company cited macroeconomic headwinds, ongoing store‑closure costs, and a $10 million tariff exposure as factors driving the more cautious forecast.
Store optimization remains a central pillar of the turnaround. Seventy‑four stores have closed year‑to‑date, with 180 planned for the fiscal year, reducing fixed costs and freeing capital for digital initiatives. Digital sales now account for roughly 70% of total demand, underscoring the company’s shift toward a digitally‑led business model.
The earnings miss and guidance cut triggered a sharp market reaction, with the stock falling 12% in after‑hours trading. Investors were most concerned about the earnings shortfall, the lower guidance, and the continued execution challenges that threaten margin recovery.
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