Torrid Holdings (CURV) reported a strong performance for 2025, achieving full-year net sales of $1 billion and adjusted EBITDA of $63.6 million, both at the top end of guidance. However, Q4 results showed a decline in net sales to $236.2 million, down from $275.6 million year-over-year, primarily due to a 10% drop in comparable sales linked to a paused footwear category. The company is undergoing a strategic transformation, including store closures and a focus on sub-brands, which are projected to drive significant growth and margin improvement in 2026.
The decline in Q4 gross margin to 30% reflects increased promotions and a reduced sales base, raising concerns about profitability amid ongoing restructuring efforts. Despite these challenges, Torrid’s leadership emphasized the positive trajectory of its sub-brands and the effectiveness of its omnichannel strategy, which has improved customer retention rates.
Looking ahead, Torrid expects 2026 net sales between $940 million and $960 million, with adjusted EBITDA guidance of $65 million to $75 million. This strategic pivot, particularly the reintroduction of footwear and the expansion of opening price point assortments, positions the company for potential recovery and growth. For a deeper dive into Torrid’s financial outlook and strategic initiatives, I recommend checking out the full article.
Source: fool.com