Q3 2025 Torrid Holdings Inc Earnings Call Transcript
Key Points
- Torrid Holdings Inc (CURV) successfully integrated fashion elements into their denim category, achieving mid-single-digit growth on top of last year's double-digit performance.
- The company is implementing a more strategically balanced assortment architecture, with approximately 30% of their assortment offering being opening price points to maintain quality standards while delivering accessible value.
- Torrid Holdings Inc (CURV) is seeing positive early performance from the reintroduction of their footwear category, which is expected to scale back to historical sales levels with improved profitability.
- The store optimization strategy is on track, with 74 stores closed year-to-date, contributing to a significant reduction in SG&A expenses and expected to enhance liquidity and EBITDA margin in fiscal 2026.
- The sub-brand strategy is performing well, on track to deliver approximately $80 million in sales this year, attracting new customers and increasing spend among high-value customers.
- Sales for the third quarter were at the low end of guidance, with a decline in comparable sales by 8.3%, largely due to missteps in the tops and jackets categories.
- Profitability was impacted by deeper promotional activity than planned, resulting in adjusted EBITDA of $9.8 million, down from $19.6 million the previous year.
- The temporary pause in the footwear category due to tariff-driven cost pressures resulted in an estimated $12.5 million in lost sales for the quarter.
- The company experienced a significant miss in the tops category, which accounted for approximately 50% of the year-over-year sales decline.
- Net loss for the quarter was $6.4 million, compared to a net loss of $1.2 million in the same period last year, reflecting challenges in execution and assortment planning.
Greetings and welcome to Torrid Holdings third quarter fiscal 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) Please note this conference is being recorded.
I will now turn the conference over to Chinwe Abaelu, Chief Accounting Officer and Senior Vice President. Thank you. You may begin.
Good afternoon everyone, and thank you for joining Torrid call today to discuss our financial results for the third quarter of fiscal 2025, which we released this afternoon and can be found on our website at investors.torrid.com.
With me on the call today are Lisa Harper, Chief Executive Officer of Torrid, and Paula Dempsey, the Chief Financial Officer. Ashlee Wheeler, our Chief Strategy and Planning Officer is also present and will be participating in the Q&A session.
Before we get started, I would like to remind you of the
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