Torrid (NYSE:CURV) reported first-quarter fiscal 2026 sales slightly above its guidance and adjusted EBITDA at the high end of its outlook, while management said ongoing initiatives around store optimization, pricing and marketing are intended to position the plus-size apparel retailer for comparable sales growth in the back half of the year.
Chief Executive Officer Lisa Harper said the company generated net sales of $245.8 million and adjusted EBITDA of $17.6 million in the quarter. Total company comparable sales declined 1.7%, but Harper said comparable sales would have increased 1.2% excluding footwear, which remains a planned headwind in the first half as the company restructures that business.
Footwear Headwind Expected to Ease Later in Year
Harper said Torrid’s footwear business weighed on first-quarter comparable sales because of a “fundamentally restructured footwear sourcing strategy and assortment mix.” She said the company expects that headwind to resolve and turn positive in the second half of the fiscal year, adding that early reads on reintroduced footwear assortments are “encouraging.”
In response to an analyst question about the company’s confidence in stronger second-half comparable sales, management said footwear has historically been an annual business of more than $50 million with a strong attachment rate. The company paused the category to restructure sourcing in an elevated tariff environment, and expects the business to become a tailwind in the back half of the year.
Harper also pointed to strength in several apparel categories during the first quarter, including knit tops, bottoms and TRU, Torrid’s activewear concept. She said those categories delivered year-over-year volume growth despite the company operating fewer stores.
Asked about tops performance, Harper said the knit tops business posted positive revenue comparable sales and margin expansion, helped by the company’s opening price point strategy. She said the broader knits business has had a “dramatic turnaround” and continues to exceed expectations. Graphics were “back on track” from a margin standpoint, while woven tops saw what Harper described as a customer shift into knits.
Opening Price Points and Sub-Brands Gain Traction
Torrid continued to emphasize its opening price point, or OPP, strategy during the quarter. Harper said the program has become both a conversion driver and a basket-building tool, offering a clear everyday value message across channels while maintaining margin discipline and product quality.
The opening price point program represented approximately 30% of apparel sales in the quarter at “healthy product margins,” Harper said, supported by a cost-engineered sourcing model. She said the strategy contributed to outsized performance in dresses, knit tops and non-denim bottoms.
Harper said Torrid’s sub-brand portfolio grew 75% year over year in the first quarter. The company continues to plan for sub-brand growth of approximately 60% for the full year, reaching roughly $110 million, up from $70 million in 2025. Sub-brands are expected to expand from about 7% of total net sales to 12%.
Store Optimization Program Nears Completion
Torrid also said its store optimization program is largely complete. Harper said the company closed another 20 structurally unproductive stores in the first quarter, bringing total closures to 171 since the program began. Chief Financial Officer Paula Dempsey said Torrid expects to close an additional seven to eight stores in the second quarter, after which the program will be substantially complete.
Management said customer retention through the store closures has remained strong, with marketing efforts redirecting customers to nearby stores and online channels. Dempsey said the company remains on track to deliver approximately $40 million of expense savings in fiscal 2026 through the store optimization initiative, including about $11 million realized in the first quarter.
First-quarter selling, general and administrative expenses declined by $6.3 million to $63.7 million from $70 million a year earlier. As a percentage of net sales, SG&A leveraged 40 basis points to 25.9%, Dempsey said.
Marketing Focus Shifts to Customer File Growth
Ashlee Wheeler, recently appointed chief commercial officer, said Torrid is moving into a “full-funnel shift into growth,” focused on acquiring new customers, reactivating lapsed shoppers and increasing loyalty and purchase frequency among existing customers.
Wheeler said the effort is not about spending more, but spending more efficiently. She cited a refreshed customer relationship management strategy, sharper segmentation and personalization, more disciplined paid media allocation, and a relaunch of direct mail as a reactivation engine. She said Torrid grew paid media revenue on lower spend in the first quarter, driving a significant return on ad spend.
Wheeler also highlighted the company’s loyalty program, which she said captures more than 90% of Torrid’s customer base. She said direct mail, relaunched in February, has produced incremental lift in retained and reactivated customers and gives the company a way to reintroduce Torrid to lapsed audiences and showcase its evolving assortment and sub-brands.
The company is also relaunching an expanded Casting Call platform in July. Wheeler described it as a year-round program designed to support acquisition, reactivation and retention by identifying customer brand ambassadors. She said Casting Call drove 10,000 new customers, reactivated more than 14,000 and produced a nine percentage point increase in unaided brand awareness in 2024.
For 2026, Torrid plans a Times Square activation in August, followed by four mall-based casting events and more than 30 in-store casting parties in the third quarter, with winners to be announced in November.
Profit Declines, Full-Year Guidance Reaffirmed
Dempsey said first-quarter net sales declined to $245.8 million from $266 million a year earlier. Gross profit was $86.8 million, down from $101.4 million, while gross margin contracted to 35.3% from 38.1%. She attributed the decline to tariffs and planned targeted promotions.
Net income was $414,000, or $0.00 per share, compared with net income of $5.9 million, or $0.06 per share, a year earlier. Adjusted EBITDA was $17.6 million, representing a 7.2% margin, down from $27.1 million and a 10.2% margin in the prior-year period.
Torrid ended the quarter with $22.8 million in cash and cash equivalents and $32.8 million drawn on its revolving credit facility. Total liquidity, including borrowing capacity, was $100 million. Inventory totaled $142.6 million, down 4.6% year over year.
For fiscal 2026, Torrid maintained its outlook for net sales of $940 million to $960 million and adjusted EBITDA of $65 million to $75 million. The company expects marketing expense to be approximately 5.5% of sales and capital expenditures of $8 million to $10 million.
For the second quarter, Torrid expects sales of $232 million to $240 million and adjusted EBITDA of $12 million to $16 million.
Dempsey said the company has filed for an initial phase of tariff refunds with expected recovery of $9 million to $11 million, with a second phase expected to provide an additional $1.5 million to $2.5 million once submission portals open. Neither phase is included in current guidance. She said guidance assumes tariffs of 10% in the first half and 15% in the second half, reflecting the possibility of further escalation later in the summer.
Asked about freight pressure, Dempsey said the company is currently able to mitigate any pressure it is seeing and that guidance contemplates the impact. She added that 70% of the company’s sourcing base is delivered duty paid, meaning costs are fully negotiated for 70% of goods for the balance of the year.
Management said Torrid is on plan for the second quarter within its guidance. On customer behavior, the company said first-quarter conversion grew by double digits and units per transaction increased in the low single digits, which management described as indicators of product acceptance and customer resilience.
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.
