Q2 2026 Torrid Holdings Inc Earnings Call Transcript
Key Points
- Torrid Holdings Inc (CURV) returned to positive comparable sales in July, with all 11 marketing channels improving sequentially and momentum continuing into August.
- Sub-brand portfolio is scaling rapidly, with year-to-date growth of approximately 74% and on track to reach $110 million in 2026, representing 12% of total net sales.
- Paid media efficiency improved significantly, with double-digit growth in paid revenue on less spend, resulting in meaningful ROAS expansion and paid revenue now 12% of digital revenue.
- Mobile app is a key growth driver, with digital demand inflecting positively in July, app revenue reaching nearly 40% of digital revenue, and over 50,000 downloads in July alone.
- The company received $11.1 million in tariff refunds, raising full-year adjusted EBITDA outlook to $76-$86 million, while maintaining net sales guidance of $940-$960 million.
- Total company comparable sales declined 6.3% in Q2, with June being a particularly difficult month due to macro pressures like elevated gas prices.
- Gross margin, excluding tariff benefits, declined 170 basis points to 33.9%, primarily due to targeted promotions.
- Footwear remained a headwind in Q2, impacting comparable sales by roughly 100 basis points, though expected to turn to a tailwind in the second half.
- Net sales decreased to $231.7 million from $262.8 million a year ago, reflecting ongoing store closures and a challenging retail environment.
- The company ended the quarter with $39.7 million drawn on its revolving credit facility, though this is expected to be the peak borrowing level for the year.
Greetings. Welcome to the Torrid Holdings Inc second-quarter fiscal year 2026 earnings conference call. (Operator Instructions)
Please note this conference is being recorded. I will now turn the conference over to Chinwe Abaelu. Please begin.
Good afternoon, everyone, and thank you for joining Torrid's call today to discuss our financial results for the second-quarter of fiscal 2026, 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, Ashlee Wheeler, our Chief Commercial Officer, and Paula Dempsey, the Chief Financial Officer.
Before we get started, I would like to remind you of the company's Safe Harbor language, which I'm sure you're familiar with. Management may make forward-looking statements including guidance and underlying assumptions. Forward-looking statements may include, but are not limited to, statements containing the word expect
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