Comparable sales declined 1.7 per cent during the quarter, improving from a 3.5 per cent decline recorded a year earlier. Gross profit margin narrowed to 35.3 per cent from 38.1 per cent in the prior-year quarter.
Lisa Harper, chief executive officer of Torrid Holdings Inc, said the company delivered first-quarter adjusted EBITDA at the high end of guidance, supported by disciplined execution across strategic initiatives.
Torrid Holdings reported first-quarter FY26 net sales of $245.8 million, down 7.6 per cent year-on-year, while net income fell to $0.4 million from $5.9 million.
Comparable sales declined 1.7 per cent and adjusted EBITDA dropped to $17.6 million.
The company closed 20 stores during the quarter and expects FY26 net sales between $940 million and $960 million.
The company posted net income of $0.4 million, or $0.00 per share, compared to net income of $5.9 million, or $0.06 per share, in the first quarter of fiscal 2025, Torrid said in a press release.
Adjusted EBITDA stood at $17.6 million, or 7.2 per cent of net sales, compared to $27.1 million, or 10.2 per cent of net sales, a year earlier.
She added that Torrid’s portfolio of five sub-brands and its opening price point strategy helped improve customer conversion and basket sizes. The company is also focusing on customer acquisition, reactivation and retention through AI-powered marketing personalisation and expanded community engagement initiatives.
During the quarter, Torrid closed 20 stores under its Store Footprint Optimisation Project, reducing its total store count to 463 from 632 a year earlier.
Torrid expects stronger second-half performance
For the second quarter of FY26, the company expects net sales between $232 million and $240 million, with adjusted EBITDA projected between $12 million and $16 million.
For the full fiscal year 2026, Torrid forecasts net sales between $940 million and $960 million, adjusted EBITDA between $65 million and $75 million, and capital expenditure of $8 million to $10 million.
Fibre2Fashion News Desk (SG)
