Torrid Holdings Inc.

Net sales were $246 million, down from $260 million a year ago. Comparable sales declined 1.7%, though ex-footwear comps were +1.2%. Gross profit was $86.8 million versus $101 million last year, and gross margin was 35.3% versus 38.1%. Net income was $414 thousand, or $0.00 per share, versus $5.9 million, or $0.06 per share, last year. Adjusted EBITDA was $17.6 million, or a 7.2% margin, versus $27.1 million and 10.2% last year. For fiscal 2026, Torrid reaffirmed full-year net sales guidance of $940 million to $960 million and adjusted EBITDA of $65 million to $75 million. For Q2, it expects sales of $232 million to $240 million and adjusted EBITDA of $12 million to $16 million. Marketing is expected to be about 5.5% of sales, and capital expenditures are expected to be $8 million to $10 million.

Lisa Harper framed the quarter as evidence that Torrid’s transformation work is taking hold, especially in channel optimization, assortment, pricing, and store rationalization. She said the company is now shifting its focus to customer file growth through acquisition, reactivation, and retention, and emphasized that the foundation for 2026 is in place. Her tone was constructive and confident, with repeated emphasis that the business is being positioned for comparable sales growth in the back half of the year and beyond.

Paula Dempsey said Q1 came in ahead of expectations, with sales and adjusted EBITDA at the high end of guidance. She highlighted gross margin of 35.3%, down from 38.1%, citing tariffs and planned promotions, while SG&A fell to $63.7 million from $70 million and marketing spend dropped to $14.5 million. She said Torrid ended the quarter with $22.8 million in cash, $32.8 million drawn on its revolver, and $100 million of total liquidity, and noted inventory was $143 million, down 4.6% year over year. She also reiterated about $40 million of fiscal 26 expense savings from store optimization, with roughly $11 million realized in Q1.

Analysts focused on promotions, tops performance, the second-half comp outlook, customer spending trends, freight pressure, and margin risk. Management said Q1 promotions were in line with plan and that opening price points have reduced reliance on promotions; on tops, it cited strong knit top and graphics performance, with sweaters solid and woven tops softer due to customer shift. On the back-half comp improvement, management pointed to footwear returning from a first-half headwind to a tailwind and to expected customer-file growth from marketing and Casting Call. On freight, management said current pressure is not substantial and that 70% of goods are under DDP terms, which reduces variability.