Earnings release
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NEWS RELEASE Torrid Reports Second Quarter 2026 Results and Updates Fiscal 2026 Guidance 2026-09-03 Delivered Second Quarter Net Sales Results within guidance Second Quarter Net Income of $5.2 million Delivered Second Quarter Adjusted EBITDAof $23.3 million, including IEEPA tari refund bene t of $11.1 million Raises Fiscal 2026 guidance to include IEEPA tari refund bene t recognized in the second quarter CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)-- Torrid Holdings Inc. (“Torrid” or the “Company”) (NYSE: CURV), a direct- to-consumer apparel, intimates, and accessories brand in North America for women sizes 8 to 30, today announced its nancial results for the second quarter ended August 1, 2026. Lisa Harper, Chief Executive O cer, stated, “Our second quarter results were in line with guidance. Sales trends improved meaningfully as the quarter progressed, with July marking a clear in ection point. This improvement re ects 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.” Harper continued, “We are encouraged by the momentum building across the business. Our sub-brands continue to scale, our opening price point strategy is driving conversion and value perception, and our expansion into third- party marketplaces is introducing Torrid to new customers. At the same time, increasingly personalized marketing, growing mobile app engagement, and the relaunched Casting Call community program are strengthening acquisition, reactivation, and retention. We are raising our full-year outlook to re ect the tari refund bene t received in the quarter. Excluding this bene t, our outlook is unchanged. With a more productive store base and disciplined operating structure supporting the business, we remain con dent in our path to sustainable (1) 1
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comparable sales growth in the second half of the year.” Financial Highlights for the Second Quarter of Fiscal 2026 Net sales decreased 11.8% to $231.7 million compared to $262.8 million for the second quarter of last year. Comparable sales decreased 6.3% in the second quarter. Gross pro t margin was 38.7% compared to 35.6% in the second quarter of last year. During the quarter, we received $11.4 million in IEEPA tari bene ts, including $11.1 million recorded as a reduction in cost of goods sold and $0.3 million recognized as related interest income. Gross pro t margin excluding the bene t of tari refunds received was 33.9% Net income of $5.2 million, or $0.05 per share, compared to net income of $1.6 million, or $0.02 per share in the second quarter of last year. Adjusted EBITDA was $23.3 million , or 10.0% of net sales, compared to $21.5 million, or 8.2% of net sales, in the second quarter of last year. Excluding the impact of tari refunds received, Adjusted EBITDA was $12.1 million, or 5.2% of net sales. In the second quarter, we closed 6 Torrid stores as part of the Store Footprint Optimization Project. The total store count at quarter end was 457 stores. Second Quarter Fiscal 2026 Financial and Operating Metrics Three Months Ended August 1, 2026August 2, 2025 Net sales (in thousands) $ 231,727$ 262,806Comparable sales (6.3)% (6.9)%Number of stores (as of end of period) 457 575Net income (in thousands) $ 5,177$ 1,567Adjusted EBITDA (in thousands) $ 23,250$ 21,525 _________________________(A)Refer to “Non-GAAP Reconciliation” below for a reconciliation of net income to Adjusted EBITDA. Balance Sheet and Cash Flow Cash and cash equivalents at the end of the second quarter of scal 2026 totaled $22.0 million. Total liquidity at the end of the second quarter, including available borrowing capacity under our revolving credit agreement, was $74.4 million. (2) (1) (1) (2) (A) (1) 2
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Net cash provided by operations for the six-month period ended August 1, 2026 was $10.1 million, compared to net cash used in operations of $2.3 million for the six-month period ended August 2, 2025. Outlook includes the bene t of IEEPA Tari s recognized in the second quarter: For the third quarter of scal 2026 the Company expects: Net sales between $230 million and $235 million. Adjusted EBITDA between $15 million and $20 million. For the full year scal 2026 the Company expects: Net sales between $940 million and $960 million. Adjusted EBITDA between $76 million and $86 million. Capital expenditures between $8 million and $10 million. The above outlook is based on several assumptions, including, but not limited to, the macroeconomic challenges in the industry in scal 2026. The above outlook does not take into consideration any further potential volatility from tari changes, including related impacts on in ation and consumer demand. See “Forward-Looking Statements” for additional information. Conference Call Details A conference call to discuss the Company’s second quarter scal 2026 results is scheduled for September 3, 2026, at 4:30 p.m. ET. Those who wish to participate in the call may do so by dialing (877) 407-9208 or (201) 493-6784 for international callers. The conference call will also be webcast live at https://investors.torrid.com. For those unable to participate, a replay of the conference call will be available approximately three hours after the conclusion of the call until September 17, 2026. Notes (1)Adjusted EBITDA is a non-GAAP nancial measure. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” for additional information onnon-GAAP nancial measures and the accompanying table for a reconciliation to the most comparable GAAP measure. The Company does notprovide reconciliations of the forward-looking non-GAAP measures of Adjusted EBITDA to the most directly comparable forward-looking GAAPmeasure because the timing and amount of excluded items are unreasonably di cult to fully and accurately estimate. For the same reasons, theCompany is unable to address the probable signi cance of the unavailable information, which could be material to future results.(2)Comparable sales for any given period are de ned as the sales of Torrid’s e-Commerce operations and stores that it has included in its comparablesales base during that period. The Company includes a store in its comparable sales base after it has been open for 15 full scal months. If a store isclosed during a scal year, it is only included in the computation of comparable sales for the full scal months in which it was open. The Companyalso determines when certain store remodels and relocations are reintegrated into our comparable sales base. Partial scal months are excludedfrom the computation of comparable sales. Comparable sales allow the Company to evaluate how its uni ed commerce business is performingexclusive of the e ects of non-comparable sales and new store openings. The Company applies current year foreign currency exchange rates tobth t di bl l t thi tff i t ti dhi it tbif (1) (1) 3
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both current year and prior year comparable sales to remove the impact of foreign currency uctuation and achieve a consistent basis forcomparison. About Torrid TORRID is a direct-to-consumer brand in North America dedicated to o ering a diverse assortment of stylish apparel, intimates, and accessories skillfully designed for the curvy woman. Specializing in sizes 8 to 30, our primary focus is on providing fashionable, comfortable, and a ordable options that meet the unique needs of our customers. Our extensive collection features high quality merchandise, including tops, bottoms, denim, dresses, intimates, activewear, footwear, and accessories. Our products are exclusive to us, and each product is meticulously crafted to cater to the needs of the curvy woman, empowering her to love the way she looks and feels. Our collections are artfully curated to suit all aspects of our customers’ lives, including casual weekends, work, dressy and special occasions. Understanding the importance of a ordability, we aim to keep our prices reasonable without compromising on quality. This allows us to build a meaningful connection with our customers, distinguishing us from other brands that often overlook plus- and mid-size consumers. Our brand experience and product o erings establish us as a di erentiated and reliable choice for plus- and mid-size customers, which we believe sets us apart in the market. We strive to be everything our customer needs in her closet, consistently delivering products that make her feel con dent and stylish. Non-GAAP Financial Measures In addition to results determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”), management utilizes certain non-GAAP performance measures, such as Adjusted EBITDA, for purposes of evaluating ongoing operations and for internal planning and forecasting purposes. We believe that these non-GAAP operating measures, when reviewed collectively with our GAAP nancial information, provide useful supplemental information to investors in assessing our operating performance. Adjusted EBITDA is a supplemental measure of our operating performance that is neither required by, nor presented in accordance with, GAAP and our calculations thereof may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA represents GAAP net income (loss) plus interest expense less interest income, net of other expense (income), plus provision for income taxes, depreciation and amortization (“EBITDA”), and share-based compensation, non-cash deductions and charges, and other expenses. We believe Adjusted EBITDA facilitates operating performance comparisons from period to period by isolating the e ects of certain items that vary from period to period without any correlation to ongoing operating performance. We also use Adjusted EBITDA as one of the primary methods for planning and forecasting the overall expected performance of our business and for evaluating on a quarterly and annual basis, actual results against such expectations. 4
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Further, we recognize Adjusted EBITDA as a commonly used measure in determining business value and, as such, use it internally to report and analyze our results and as a benchmark to determine certain non-equity incentive payments made to executives. Adjusted EBITDA has limitations as an analytical tool. This measure is not a measurement of our nancial performance under GAAP and should not be considered in isolation or as an alternative to or substitute for net income (loss), income (loss) from operations, earnings (loss) per share or any other performance measures determined in accordance with GAAP or as an alternative to cash ows from operating activities as a measure of our liquidity. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be una ected by unusual or non-recurring items. Forward-Looking Statements Certain statements made in this earnings release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this earnings release are forward-looking statements. Forward-looking statements re ect our current expectations and projections relating to our nancial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely” and other words and terms of similar meaning (including their negative counterparts or other various or comparable terminology). For example, all statements we make relating to our expected third quarter of scal 2026, our full year scal 2026 performance, our estimated and projected costs, expenditures, cash ows, growth rates and nancial results, our plans and objectives for future operations, growth or initiatives, strategies or the expected outcome or impact of pending or threatened litigation are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to di er materially from those that we expected, including: changes in consumer spending and general economic conditions; the negative impact on our revenue and pro tability as a result of the imposition of new or increased duties or tari s on goods from the countries where we manufacture our merchandise which, among other things, could limit our ability to manufacture products in cost-e ective countries and require us to absorb costs or pass costs onto customers; ongoing or threats of war, terrorism and other catastrophes, including natural disasters, that could negatively impact our business; 5
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the interruption of the ow of merchandise from international manufacturers; the negative impact on interest expense as a result of high interest rates; in ationary pressures with respect to labor and raw materials and global supply chain constraints that could increase our expenses; our ability to identify and respond to new and changing product trends, consumer shopping preferences and other related factors, including the increasing use of glucagon-like peptide-1 (“GLP-1”) medications; our dependence on a strong brand image; increased competition from other brands and retailers; our reliance on third parties to drive tra c to our website; the success of the shopping centers in which our stores are located; our ability to develop and maintain a relevant and reliable omni-channel experience for our customers; our dependence upon independent third parties for the manufacture of all of our merchandise; availability constraints and price volatility in the raw materials used to manufacture our products; exposure to risks inherent in doing business globally as a result of sourcing a signi cant amount of our products from various countries; shortages of inventory, delayed shipments to our e-Commerce customers and harm to our reputation due to di culties or shut-down of our distribution facility; our reliance upon independent third-party transportation providers for substantially all of our product shipments; our growth strategy, including our retail store optimization strategy; our failure to attract and retain employees that re ect our brand image, embody our culture and possess the appropriate skill set; damage to our reputation arising from our use of social media, email and text messages; our reliance on third parties for the provision of certain services, including real estate management; our dependence upon key members of our executive management team; our reliance on information systems, including arti cial intelligence and machine learning technologies; system security risk issues that could disrupt our internal operations or information technology services; unauthorized disclosure of sensitive or con dential information, whether through a breach of our computer system, third-party computer systems we rely on, or otherwise; our failure to comply with federal and state laws and regulations and industry standards relating to privacy, data protection, advertising and consumer protection; payment-related risks that could increase our operating costs or subject us to potential liability; claims made against us resulting in litigation; changes in laws and regulations applicable to our business; regulatory actions or recalls arising from issues with product safety; the adverse impact of rulemaking changes implemented by the Consumer Financial Protection Bureau on our 6
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income streams, pro tability and results of operations; our inability to protect our trademarks or other intellectual property rights; our substantial indebtedness and lease obligations; restrictions imposed by our indebtedness on our current and future operations; changes in tax laws or regulations or in our operations that may impact our e ective tax rate; the possibility that we may recognize impairments of de nite-lived assets; and our failure to maintain adequate internal control over nancial reporting. The outcome of the events described in any of our forward-looking statements are also subject to risks, uncertainties and other factors described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K led with the Securities and Exchange Commission (“SEC”) on March 31, 2026 and in our other lings with the SEC and public communications. You should evaluate all forward-looking statements made in this earnings release in the context of these risks and uncertainties. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very di cult to predict the e ect of known factors, and it is impossible for us to anticipate all factors that could a ect our actual results. We caution you that the important factors referenced above may not include all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the outcomes or a ect us or our operations in the way we expect. The forward-looking statements included in this earnings release are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except to the extent required by law. Our forward-looking statements do not re ect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments. Investors and others should note that we may announce material information to our investors using our investor relations website (https://investors.torrid.com), SEC lings, press releases, public conference calls and webcasts. We use these channels, as well as social media, to communicate with our investors and the public about our company, our business and other issues. It is possible that the information that we post on social media could be deemed to be material information. We therefore encourage investors to visit these websites from time to time. The information contained on such websites and social media posts is not incorporated by reference into this ling. Further, our references to website URLs in this ling are intended to be inactive textual references only. 7
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TORRID HOLDINGS INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(UNAUDITED)(In thousands, except per share data)Three Months Ended August 1, 2026 August 2, 2025 Net sales $ 231,727$ 262,806Cost of goods sold 141,980 169,318 Gross pro t 89,747 93,488Selling, general and administrative expenses61,882 70,511Marketing expenses 13,326 12,817 Income from operations 14,539 10,160Interest expense 7,841 8,119Interest income, net of other expense (income)148 (13) Income before income taxes 6,550 2,054Provision for income taxes 1,373 487 Net income $ 5,177$ 1,567 Net earnings per share: Basic $ 0.05$ 0.02Diluted $ 0.05$ 0.02 Weighted average number of shares: Basic 99,602 102,470Diluted 100,213 102,746Other comprehensive (loss) income:Foreign currency translation adjustment (207) 16 Total other comprehensive (loss) income (207) 16 Comprehensive income $ 4,970$ 1,583 TORRID HOLDINGS INC.CONSOLIDATED BALANCE SHEETS(UNAUDITED)(In thousands, except share and per share data)August 1, 2026January 31, 2026August 2, 2025Assets Current assets:Cash and cash equivalents$ 22,004$ 20,023$ 21,543Restricted cash 421 421 399Inventory 125,600 136,483 130,235Prepaid expenses and other current assets27,690 24,564 25,765Prepaid income taxes 10,822 11,991 11,144 Total current assets 186,537 193,482 189,086Property and equipment, net 46,960 51,632 63,672Operating lease right-of-use assets93,099 108,191 119,097Deposits and other noncurrent assets17,385 19,570 20,333Deferred tax assets 19,065 19,065 13,877Intangible asset 8,400 8,400 8,400 Total assets $ 371,446$ 400,340$ 414,465 Liabilities and Stockholders’ De cit Current liabilities:Accounts payable $ 57,718$ 56,764$ 53,198Accrued and other current liabilities90,668 106,446 108,898Operating lease liabilities 26,649 32,171 33,497Borrowings under credit facility39,690 31,020 7,900Current portion of term loan 16,144 16,144 16,144Due to related parties 3,992 6,271 8,436Income taxes payable — 122 118 Total current liabilities 234,861 248,938 228,191Noncurrent operating lease liabilities86,814 100,884 113,675Noncurrent debt, net 248,192 256,264 264,337Deferred compensation 4,137 4,039 3,801Other noncurrent liabilities 3,255 3,622 5,577 Total liabilities 577,259 613,747 615,581 Commitments and contingencies Stockholders’ De cit: Pf dh $001 l 5000000h thi d 8
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Preferred shares: $0.01 par value; 5,000,000 shares authorized; noshares issued and outstanding at August 1, 2026, January 31, 2026 andAugust 2, 2025 — — —Common shares: $0.01 par value; 1,000,000,000 shares authorized;105,724,568 and 99,693,660 shares issued and outstanding,respectively, at August 1, 2026; 105,344,216 and 99,313,308 sharesissued and outstanding, respectively, at January 31, 2026; and105,157,295 and 99,126,387, shares issued and outstanding,respectively, at August 2, 2025 1,057 1,053 1,052Additional paid-in capital 146,911 144,720 142,386Accumulated de cit (332,712) (338,303) (323,762)Accumulated other comprehensive loss(798) (606) (507)Common shares in treasury, at cost: 6,030,908 shares at August 1,2026, January 31, 2026 and August 2, 2025(20,271) (20,271) (20,285) Total stockholders’ de cit (205,813) (213,407) (201,116) Total liabilities and stockholders’ de cit$ 371,446$ 400,340$ 414,465 TORRID HOLDINGS INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)(In thousands)Six Months Ended August 1, 2026August 2, 2025OPERATING ACTIVITIES Net income $ 5,591$ 7,507Adjustments to reconcile net income to net cash provided by (used in) operating activities:Write down of inventory 1,436 1,427Operating right-of-use assets amortization13,578 17,583Depreciation and other amortization 12,110 19,584Share-based compensation 4,321 2,840Deferred taxes — 2,743Write o of excess operating lease liabilities against operating right-of-use-assets(1,881) (4,164)Other, net 589 (799)Changes in operating assets and liabilities:Inventory 9,253 17,060Prepaid expenses and other current assets(3,126) (1,258)Prepaid income taxes 1,169 (6,900)Deposits and other noncurrent assets 2,134 (1,045)Accounts payable 424 (19,980)Accrued and other current liabilities (16,771) (17,026)Operating lease liabilities (16,910) (19,840)Other noncurrent liabilities 452 (82)Deferred compensation 98 (112)Due to related parties (2,279) 74Income taxes payable (122) 118 Net cash provided by (used in) operating activities10,066 (2,270) INVESTING ACTIVITIES Purchases of property and equipment (7,415) (3,671) Net cash used in investing activities (7,415) (3,671) FINANCING ACTIVITIES Proceeds from revolving credit facility 311,060 171,650Principal payments on revolving credit facility(302,390) (163,750)Deferred nancing costs paid for revolving credit facility— (375)Principal payments on term loan (8,750) (8,750)Proceeds from issuances under share-based compensation plans74 199Withholding tax payments related to vesting of restricted stock units and awards and exercise ofnon quali ed stock options (175) (444)Share repurchase, including excise tax paid(186) (20,000) Net cash used in nancing activities (367) (21,470) E ect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash(303) 431 Increase (decrease) in cash, cash equivalents and restricted cash1,981 (26,980)Cash, cash equivalents and restricted cash at beginning of period20,444 48,922 Cash, cash equivalents and restricted cash at end of period$ 22,425$ 21,942 SUPPLEMENTAL INFORMATION Cash paid during the period for interest related to the revolving credit facility and term loan$ 12,592$ 17,680 Cash paid during the period for income taxes$ 789$ 7,135 SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCINGACTIVITIES P t d i t h i lddi t bl d dlibiliti $ 1248$ 2138 9
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Property and equipment purchases included in accounts payable and accrued liabilities$ 1,248$ 2,138 Cost of treasury shares included in accounts payable and accrued liabilities$ —$ 85 Excise tax from share repurchase included in accounts payable and accrued liabilities$ —$ 200 Non-GAAP ReconciliationThe following table provides a reconciliation of net income to Adjusted EBITDA for the periods presented (inthousands): Three Months Ended August 1, 2026August 2, 2025 Net income $ 5,177$ 1,567Interest expense 7,841 8,119Interest income, net of other expense (income)148 (13)Provision for income taxes 1,373 487Depreciation and amortization 5,037 9,430Share-based compensation 2,302 1,371Noncash deductions and charges (159) 23 Other expenses 1,531 541 Adjusted EBITDA $ 23,250$ 21,525 _________________________(A)Depreciation and amortization excludes amortization of debt issuance costs and original issue discount that are re ected in interest expense.(B)Share-based compensation includes $1.2 million for awards that will be settled in cash during the three months ended August 1, 2026 and was notmaterial during the three months ended August 2, 2025. These awards are accounted for similar to awards settled in shares in accordance with ASC718, Compensation—Stock Compensation.(C)Noncash deductions and charges includes noncash losses on property and equipment disposals and the net impact of noncash rent expense.(D)Other expenses include severance costs for certain key management positions, certain transaction and litigation fees (including certain settlementcosts), and the reimbursement of certain management expenses, primarily for travel, incurred by Sycamore on our behalf, which are notconsidered to be part of our core business. Investors Tom Filandro Lyn Walther IR@torrid.com Media Joele Frank, Wilkinson Brimmer Katcher Michael Freitag / Arielle Rothstein / Lyle Weston Media@torrid.com Source: Torrid Holdings Inc. (A) (B) (C) (D) 10