Torrid Holdings Reports 7.6% Decline in Q1 Fiscal 2026 Net Sales

Torrid Holdings Inc. reported a decline in financial performance for the first quarter of fiscal year 2026, ending May 2, 2026. The company generated net sales of $245.8 million, a decrease of 7.6% from $266.0 million in the same period last year. This decline was attributed to a reduction in sales transactions and transaction values, largely due to the company's ongoing retail store optimization strategy, which resulted in the closure of 169 stores over the past year. Gross profit also fell by 14.4% to $86.8 million, with gross profit as a percentage of net sales decreasing to 35.3% from 38.1% in the prior year.

In terms of operational metrics, Torrid's total number of stores decreased to 463, down from 632 a year earlier. The company reported a comparable sales decline of 1.7%, compared to a 3.5% decline in the previous year. Adjusted EBITDA for the quarter was $17.6 million, down from $27.1 million in the same quarter of the previous year. The company’s net income was $414,000, a significant drop from $5.9 million in the prior year, reflecting the challenges faced in the current retail environment.

Torrid's selling, general, and administrative expenses decreased by 9.0% to $63.7 million, primarily due to reduced payroll costs and general administrative expenses. Marketing expenses also saw a slight reduction, totaling $14.5 million, although they represented a higher percentage of net sales compared to the previous year. Interest expense decreased to $7.7 million from $8.2 million, reflecting a lower balance on the Amended Term Loan Credit Agreement and a decrease in the variable interest rate.

Looking ahead, Torrid Holdings remains focused on its strategic initiatives, including further optimizing its retail footprint and enhancing its e-commerce capabilities. The company is also navigating challenges related to inflation, tariffs, and changing consumer preferences. Torrid has submitted a refund application for previously paid tariffs totaling approximately $11.4 million, which could provide some financial relief. The company anticipates that its ongoing investments in brand awareness and customer engagement will support long-term revenue growth, despite the current economic pressures.