Torrid Holdings Reports 11.8% Decline in Net Sales for Q2 Fiscal 2026

Torrid Holdings Inc. reported a decline in financial performance for the second quarter of fiscal year 2026, with net sales decreasing by 11.8% to $231.7 million compared to $262.8 million in the same period last year. The company's gross profit also fell by 4.0% to $89.7 million, although gross profit as a percentage of net sales improved to 38.7% from 35.6%. The decrease in sales was attributed to lower transaction values and a reduction in the number of stores, which fell by 20.5% to 457 as part of a retail store optimization strategy that has seen the closure of 20 stores in the first quarter and an additional six in the second quarter.

In terms of profitability, Torrid's net income for the quarter was $5.2 million, a significant increase from $1.6 million in the prior year, driven in part by approximately $11.1 million in refunds from previously paid tariffs under the International Emergency Economic Powers Act (IEEPA). The company’s selling, general, and administrative expenses decreased by 12.2% to $61.9 million, reflecting cost-cutting measures associated with the store optimization strategy. Marketing expenses increased slightly to $13.3 million, representing 5.8% of net sales, as the company continued to invest in brand awareness and customer engagement.

Operationally, Torrid's customer engagement metrics showed a shift towards e-commerce, with the company focusing on enhancing its online presence. The total number of active customers decreased, reflecting the impact of store closures and changing consumer preferences. The company reported a comparable sales decline of 6.3% for the quarter, slightly better than the 6.9% decline in the previous year. The company’s employee headcount has also been adjusted in line with its store closures, although specific figures were not disclosed.

Looking ahead, Torrid Holdings remains cautious about the economic environment, particularly concerning inflationary pressures and consumer spending trends. The company plans to continue its focus on optimizing its retail footprint while enhancing its e-commerce capabilities. Torrid's management expressed optimism about future growth, contingent on effective customer acquisition strategies and the successful navigation of ongoing market challenges, including potential impacts from tariffs and supply chain disruptions. The company is committed to maintaining a strong brand image and adapting to evolving consumer preferences as it seeks to stabilize and grow its market share in the plus-size apparel segment.