Particle.news
Download on the App Store

Torrid Sets 2026 Outlook as Turnaround Shifts to Growth Following Soft Q4

Management pivots to customer growth, prioritizing lower-cost reactivation through owned channels alongside margin‑accretive sub‑brands.

Overview

  • Torrid guided fiscal 2026 net sales to $940 million–$960 million and adjusted EBITDA to $65 million–$75 million, with first‑quarter sales of $236 million–$244 million and adjusted EBITDA of $14 million–$18 million.
  • Full‑year 2025 results met targets at $1.0 billion in net sales and $63.6 million in adjusted EBITDA, as the company managed roughly $50 million in tariff headwinds and reduced inventory 8% year over year.
  • Fourth‑quarter 2025 net sales were $236.2 million with comparable sales down 10%, a net loss of $8.1 million, and adjusted EBITDA of $5.2 million, with the footwear pause weighing an estimated 460 basis points on comps.
  • Torrid closed 151 stores in 2025, including 77 in Q4, and plans up to about 30 additional closures by mid‑2026, targeting roughly $40 million of expense savings and signaling about 140 basis points of adjusted EBITDA margin expansion.
  • Growth initiatives center on reactivating more than 7 million lapsed customers at roughly one‑third the cost of paid acquisition, scaling sub‑brands projected to reach about $110 million in 2026 at higher margins, and phasing footwear back to drive a back‑half recovery.