Torrid (CURV) investor relations material

Executive summary

• Net sales for Q2 2026 were $231.7 million, within guidance but down 11.8% year-over-year.

• Adjusted EBITDA was $23.3 million, benefiting from an $11.1 million IEEPA tariff refund; excluding this, EBITDA was $12.1 million.

• Comparable sales declined 6.3% year-over-year, but July marked a positive inflection with improved trends continuing into August.

• Strategic focus on customer file growth, merchandising adjustments, and expansion into third-party marketplaces is driving momentum.

• Store Optimization Program largely completed, with 177 closures since inception and strong customer retention through transition.

Financial highlights

• Gross profit was $89.7 million (38.7% margin), up from 35.6% last year due to $11.1 million in tariff refunds; excluding this, gross margin was 33.9%.

• SG&A expenses declined to $61.9 million, reflecting store optimization savings; marketing spend increased to $13.3 million.

• Net income was $5.2 million ($0.05/share), up from $1.6 million ($0.02/share) last year.

• Adjusted EBITDA margin was 10% (5.2% excluding tariff benefit).

• Inventory down 3.6% year-over-year to $125.6 million.

Outlook and guidance

• Full-year net sales projected at $940–$960 million; adjusted EBITDA outlook raised to $76–$86 million (including tariff benefit), or $65–$75 million excluding it.

• Q3 net sales expected at $230–$235 million, adjusted EBITDA at $15–$20 million.

• EBITDA margin improvement expected in Q4, driven by gross margin expansion and SG&A leverage.

• $40 million in expense savings targeted for 2026 from store optimization; $22 million realized in H1.

• Capital expenditures of $8–$10 million planned, split between store refreshes and marketing system improvements.