Torrid (CURV) investor relations material

Executive summary

• Net sales for Q2 FY25 were $262.8 million, down 7.7% year-over-year, with adjusted EBITDA of $21.5 million and net income of $1.6 million, both in line with guidance.

• Comparable sales declined 6.9%–7% year-over-year, impacted by footwear restructuring, event timing, and lower transaction values.

• Strategic initiatives include launching five sub-brands, closing up to 180 underperforming stores, and reallocating resources to digital channels and marketing.

• Sub-brands are expected to reach 25–30% of assortment next year, supporting higher margins and customer growth.

• Retail optimization strategy aims to improve cost structure, working capital, and long-term growth.

Financial highlights

• Gross profit was $93.5 million, with gross margin at 35.6%, down from 38.7% year-over-year.

• SG&A expenses improved to $70.5 million, representing 26.8% of sales; marketing expenses were $12.8 million.

• Net income was $1.6 million ($0.02 per share), down from $8.3 million ($0.08 per share) last year.

• Adjusted EBITDA margin was 8.2%, down from 12.2% year-over-year.

• Cash and equivalents ended at $21.5 million; total liquidity at $111.7 million.

Outlook and guidance

• FY25 net sales expected between $1.015 billion and $1.030 billion; Q3 guidance is $235–$245 million.

• Adjusted EBITDA for FY25 forecasted at $80–$90 million, reflecting higher tariffs and increased marketing spend.

• Up to 180 store closures planned to align with demand and sales channels.

• Capital expenditures for FY25 projected at $10–$15 million, focused on digital, fulfillment, and technology.

• Tariff impact estimated at $50 million, with $40 million mitigated and $10 million expected exposure.