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Aug 02, 2025
Torrid Q2 2025 Earnings Report
Torrid delivered results in line with expectations despite a year-over-year decline in revenue and profitability.
Key Takeaways
Torrid posted Q2 revenue of $262.8M and net income of $1.6M, as it faced continued sales pressure and rising tariff-related costs. Adjusted EBITDA margin declined, but the company reaffirmed its focus on long-term brand initiatives.
Revenue declined 7.7% YoY to $262.8M amid a 6.9% drop in comparable sales.
Net income fell to $1.6M compared to $8.3M in Q2 2024.
Adjusted EBITDA was $21.5M, representing 8.2% of net sales.
Gross margin compressed to 35.6% due to higher input costs and tariffs.
Forward Guidance
Torrid expects full-year revenue between $1.015B and $1.03B and Adjusted EBITDA between $80M and $90M, accounting for increased marketing spend and tariff exposure.
Positive Outlook
- Revenue guidance reaffirmed in the $1.015B–$1.03B range.
- Adjusted EBITDA outlook of $80M–$90M shows expected margin recovery.
- Cost mitigation strategies already offset $40M in tariff impacts.
- Investments in high-margin sub-brands to continue.
- Digital and influencer marketing planned to boost H2 performance.
Challenges Ahead
- Up to $10M remaining exposure to new July tariffs.
- 150–180 store closures expected to align with demand trends.
- Comparable sales continue to decline.
- Q2 margin compressed due to macro headwinds.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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