Torrid Holdings Inc. Reports Decline in Financial Performance for Q1 Fiscal 2025

Torrid Holdings Inc. reported a decline in financial performance for the first quarter of fiscal year 2025, ending May 3, 2025. The company generated net sales of $265.965 million, a decrease of 4.9% from $279.771 million in the same period last year. Gross profit also fell by 12.1% to $101.402 million, resulting in a gross profit margin of 38.1%, down from 41.3%. Net income for the quarter was $5.940 million, or $0.06 per diluted share, compared to $12.172 million, or $0.12 per diluted share, in the prior year. The decrease in revenue and profitability was attributed to a reduction in sales transactions and transaction values, alongside increased merchandising payroll costs.

In terms of operational metrics, Torrid's store count decreased by 26 locations, or 4.0%, to 632 stores as of May 3, 2025. The company reported a significant drop in customer engagement, which was reflected in the decline in sales transactions. Selling, general, and administrative expenses decreased by 8.4% to $70.016 million, primarily due to lower payroll costs and reduced other operating expenses. However, marketing expenses increased by 19.9% to $15.359 million, driven by higher spending on social media and advertising initiatives.

Torrid's balance sheet showed total assets of $451.378 million, down from $488.441 million at the end of the previous fiscal period. Current liabilities also decreased to $232.008 million from $263.132 million, reflecting improved management of accounts payable and accrued expenses. The company reported a stockholders' deficit of $183.821 million, an improvement from $191.089 million, primarily due to the net income generated during the quarter.

Looking ahead, Torrid Holdings Inc. remains focused on enhancing its brand awareness and customer engagement through targeted marketing investments. The company plans to continue its strategy of introducing new merchandise lines while managing inventory levels effectively. Despite the challenges posed by economic conditions and competition, Torrid aims to leverage its unique position in the market for plus- and mid-size apparel to drive future growth. The company has access to $117.3 million in additional liquidity from its asset-based revolving credit facility, which it may utilize to support ongoing operations and strategic initiatives.