Torrid (NYSE:CURV) executives used the company’s fourth quarter fiscal 2025 earnings call to outline what they described as the completion of a two-year operational reset and a pivot toward customer growth initiatives in fiscal 2026. Management pointed to progress across store footprint optimization, a sub-brand expansion strategy, pricing changes anchored by opening price points, and the reintroduction of footwear after a pause tied to tariff conditions.
Fourth quarter and full-year results
Chief Executive Officer Lisa Harper said the company delivered full-year fiscal 2025 net sales of $1.0 billion, reaching the top end of its outlook, and adjusted EBITDA of $63.6 million, exceeding the high end of its prior range. For the fourth quarter, Torrid reported net sales of $236.2 million and adjusted EBITDA of about $5.1 million.
SG&A expense declined $11.4 million to $62.4 million. As a percentage of sales, SG&A was 26.4%, which Dempsey said reflected early benefits from the company’s store optimization program. Marketing investment decreased $1.9 million to $13.5 million. Net loss for the quarter was $8.1 million, or $0.08 per share, compared with a net loss of $3.0 million, or $0.03 per share, in the prior year. Adjusted EBITDA was $5.2 million (2.2% margin) versus $16.7 million (6.1% margin) a year ago.
On the balance sheet, Dempsey said Torrid ended the quarter with $200 million in cash and cash equivalents and $31 million drawn on its revolving credit facility. Inventory totaled $136.5 million, down 8%, reflecting “tighter receipt management” and a smaller store base.
Store optimization nearing completion
Harper reiterated that Torrid previously identified up to 180 “structurally unproductive” stores for closure, with those locations averaging roughly $350,000 in annual sales. She said the company completed 85% of the closures by the fourth quarter, closing 151 stores during fiscal 2025, and has closed an additional 11 stores so far in the first quarter of fiscal 2026. Dempsey added that Torrid closed 77 stores in the fourth quarter alone and expects to close up to 30 more by the end of the first half of fiscal 2026, at which point the program will be “substantially complete.”
Management emphasized customer retention in markets affected by closures. Harper said retention from prior closures is meeting or exceeding internal models, with customers shifting to nearby stores and to digital, which has improved traffic, transactions, and four-wall profitability in the remaining fleet. Dempsey said retention has been consistent with historical levels, and that the company minimized exit costs by aligning closures with natural lease expirations.
Financially, Dempsey said the company realized about $18.5 million in lower operating expenses in fiscal 2025 from store closures completed this year plus stores closed in the prior year, and expects an additional $40 million in expense savings in fiscal 2026.
Merchandising changes: sub-brands, opening price points, and category momentum
Harper said Torrid entered fiscal 2026 with five sub-brands live and that about 80% of assortment planning and buying decisions are now data-informed. She said sub-brands generated more than $70 million in sales during fiscal 2025 and the company is projecting roughly 60% growth in fiscal 2026 to about $110 million, expanding from around 7% of total net sales to about 12%. Harper said the sub-brand growth is margin accretive because the products are bought with scarcity and achieve higher full-price sell-through.
In response to analyst questions, Harper described three of the five sub-brands—Festi, Nightfall, and Retro Chic—as consistent performers, with Festi the largest and viewed as having the biggest expansion opportunity. She said Belle Isle is highly seasonal (stronger in the first half), and the company is “still exploring the opportunity” with Lovesick, described as a younger-oriented brand. Harper also said the company is being more conservative about the growth cycle for sub-brands, suggesting mix expectations have moderated versus earlier commentary, and noted Torrid will test additional in-store opportunities and potential pop-ups.
Harper also highlighted the company’s opening price point (OPP) strategy, which she said is exceeding expectations and is designed to balance accessibility with margin discipline and quality. OPP now represents about 30% of total assortment and nearly 40% in stores, spanning jeans, leggings, non-denim bottoms, and tops including graphic tees. Executives said early results show improved conversion and units per transaction, and Chief Strategy and Planning Officer Ashlee Wheeler later said OPP is expected to expand closer to 40% of the business.
On category performance, Harper said dresses posted growth for four consecutive quarters, knit tops improved and turned positive in the latter half of the fourth quarter, and intimates and activewear gained momentum. Wheeler said the business improved in January after the company “chased” core franchises and fabrications into the tops category, and that those receipts arrived in late December for January selling.
Torrid also discussed the relaunch of Curve, its intimate apparel brand, in February and said two new bras are planned for the back half of fiscal 2026. Harper said bras are a key portfolio pillar tied to acquisition, reactivation, and long-term loyalty.
Footwear returns after tariff-driven pause
Management said Torrid reintroduced footwear on a limited basis in the fourth quarter after pausing the category in an “elevated tariff environment.” Harper said the company sold out of the limited assortment in record time and expects to return “at scale and more profitably” in the back half of fiscal 2026.
Harper quantified the impact of the pause, stating it created a 260 basis point negative impact to full-year comparable sales in fiscal 2025 and a 460 basis point negative impact in the fourth quarter. During Q&A, Harper said footwear will remain a headwind in the first quarter and second quarter, with product expected to be back in stock around June/July, and a year-over-year benefit beginning in the third quarter when the company launches boots “in a fulsome way.” She said the company restructured sourcing and assortment to improve attachment rates and profitability, and that tests of the new vendor structure and product quality in November were a “resounding success.”
Fiscal 2026 outlook and customer-file growth focus
For fiscal 2026, Dempsey guided to net sales of $940 million to $960 million and adjusted EBITDA of $65 million to $75 million, which she said implies margin expansion of up to 140 basis points versus fiscal 2025. Capital expenditures are expected to be $8 million to $10 million. For the first quarter, Torrid expects sales of $236 million to $244 million and adjusted EBITDA of $14 million to $18 million.
Dempsey also explained why expected cost savings do not translate dollar-for-dollar into EBITDA upside, citing offsets including lower gross margin dollars on a reduced sales base and a year-over-year headwind from resetting incentive compensation to a more normalized bonus structure.
Strategically, Harper said Torrid’s top priority in fiscal 2026 is accelerating customer file growth through retention, reactivation, and acquisition, with an emphasis on targeted segmentation and personalization across owned and organic channels. Management said more than 95% of active customers are engaged with the loyalty program, and Wheeler said the company has more than 7 million lapsed customers reachable through owned channels. Harper said reactivating lapsed customers through segmentation and personalized communication costs roughly one-third of acquiring new customers through paid digital media. Torrid expects marketing spend to remain consistent with prior years at roughly 5% to 5.5% of net sales.
In discussing promotions, Harper said the company will place less emphasis on Torrid Cash redemption, citing declining redemption over time, and shift messaging toward opening price points and price parity across channels. She also referenced increased use of “multiples” promotions in categories such as bralettes and tops. On loyalty, Harper said the company is working to drive more frequency and has reinstated an “icon” level for top customers.
About Torrid (NYSE:CURV)
Torrid, trading under the ticker CURV on the New York Stock Exchange, is a specialty retailer focused on plus-size women’s fashion. Established in 2001 as a division of Hot Topic, Torrid has built its reputation on offering trend-driven apparel and accessories designed specifically for women who wear size 10 to 30. The company’s product assortment spans casual wear, denim, activewear, intimates, footwear, and fashion‐forward accessories, catering to a demographic that has historically been underserved by mainstream retailers.
Over the years, Torrid has expanded from its early mall‐based store footprint to become a multichannel business.
