Torrid (CURV) Announces First Quarter 2025 Earnings Results

Torrid Holdings Inc. (CURV) today announced its financial results for the most recent quarter, revealing earnings per share of $0.06, which exceeded analysts’ expectations by $0.015. However, the company’s revenue fell short of estimates, coming in at $265.97 million compared to the anticipated $270.58 million. Despite the revenue miss, the earnings beat reflects a positive trend for the company as it navigates the competitive retail landscape.

Key Highlights:

• Torrid reported first quarter net sales of $266 million, down 4.9% from the previous year.
• Net income for the quarter was $5.9 million, compared to $12.2 million in the same quarter last year.
• Adjusted EBITDA was $27.1 million, representing 10.2% of net sales.
• The company plans to close up to 180 underperforming stores to reduce fixed costs and reinvest in growth areas.
• Digital sales now account for nearly 70% of total demand, prompting a shift towards a more digitally-led business model.
• For the second quarter of fiscal 2025, Torrid expects net sales between $250 million and $265 million and adjusted EBITDA between $18 million and $24 million.

Summary: Torrid Holdings Inc. announced its financial results for the first quarter of fiscal 2025, reporting net sales of $266 million, a decrease of 4.9% compared to the same period last year. The company’s net income was $5.9 million, down from $12.2 million, and adjusted EBITDA was $27.1 million, or 10.2% of net sales. CEO Lisa Harper expressed pride in the company’s progress, highlighting the effectiveness of their sub-brand strategy, which is expected to represent nearly a third of their business by 2026. The company is also focusing on digital transformation, with digital sales approaching 70% of total demand.

Looking ahead, Torrid has updated its fiscal 2025 guidance, expecting net sales between $1.030 billion and $1.055 billion and adjusted EBITDA between $95 million and $105 million. The company plans to close up to 180 underperforming stores to optimize its retail footprint and reduce costs, while also investing in customer acquisition and omnichannel enhancements. Harper emphasized the company’s strong financial position and commitment to delivering innovative products and deepening customer connections.

Torrid Holdings Inc. (CURV) has experienced a rollercoaster ride in its stock price, with a notable 48.40% surge over the past six months, contrasting sharply with a 21.21% decline over the last month. This volatility reflects the company’s struggle with fundamental metrics, as evidenced by a staggering two-year compound annual growth rate (CAGR) of -42.26% in earnings per share and a revenue decline of 7.80%. Despite these challenges, Torrid has managed to generate a positive free cash flow CAGR of 45.05%, indicating some operational resilience. The company’s return on invested capital stands at a commendable 25.57%, suggesting effective use of capital despite the thin net profit margin of just 1.43%. Investors may be cautious, given the stock’s price-to-earnings ratio of 31.12, which could imply overvaluation in light of the declining earnings trend. As the market digests these mixed signals, the future trajectory of CURV will depend on the company’s ability to stabilize its revenue and improve profitability.

Torrid Holdings Inc. operates in women’s plus-size apparel and intimates market in North America. The company designs, develops, and merchandises its products under the Torrid and Torrid Curve brand names. It is involved in the sale of tops, bottoms, dresses, denims, activewear, intimates, sleep wear, swim wear, and outerwear products; and non-apparel products comprising accessories, footwear, and beauty products. The company sells its products directly to consumers through its e-commerce platform and its physical stores. As of January 29, 2022, it operated 624 stores in 50 U.S. states, Puerto Rico, and Canada. Torrid Holdings Inc. was incorporated in 2019 and is headquartered in City of Industry, California.