For the full fiscal year 2025, Torrid's net sales decreased by 9.4% to $1 billion, down from $1.1 billion in the previous year. The company reported an adjusted EBITDA of $63.6 million, which is a decrease from $109.1 million in the prior year, reflecting a decline in operational performance. The gross profit margin also fell to 34.8% from 37.5% in the previous year.
In an effort to streamline operations, Torrid closed 151 underperforming stores, bringing the total store count to 483 by the end of the fiscal year. The company is focusing on optimizing its retail footprint and enhancing its product offerings to better meet customer needs. CEO Lisa Harper stated that 2025 was a transformational year for the company, emphasizing the strategic decisions made to strengthen the business.
Looking ahead, Torrid has initiated guidance for fiscal 2026, projecting net sales between $940 million and $960 million, with adjusted EBITDA expected to range from $65 million to $75 million. The company aims to accelerate customer growth through renewed marketing efforts and improved product offerings. However, the outlook remains cautious due to ongoing macroeconomic challenges and the impact of inflation on consumer spending.
The company will hold a conference call to discuss these results and the outlook for fiscal 2026 on March 19, 2026, at 4:30 p.m. ET. Investors can participate by dialing the provided numbers or accessing the live webcast on the company's investor relations website.
