Torrid Holdings Inc. announced its financial results for the quarter ended August 2, 2025.
The company reported second quarter net income of $1.6 million and adjusted EBITDA in line with guidance.
Despite a decrease in net sales and gross profit margin, Torrid remains focused on strategic sub-brands and marketing investments.
Financial Performance
Net sales decreased by 7.7% to $262.8 million, with a net income of $1.6 million and adjusted EBITDA of $21.5 million for the second quarter of fiscal 2025.
Strategic Focus
Torrid focuses on sub-brands to drive market response and increase marketing investments to boost awareness and consideration.
Mitigating Tariff Costs
The company has already mitigated $40 million of tariff costs through sourcing strategies and expense optimization, but expects up to $10 million additional expense exposure due to new tariff rates.
- Despite a decrease in net sales and gross profit margin, Torrid's proactive management of external pressures has helped mitigate tariff costs and protect profitability.
- The company's strategic focus on sub-brands and marketing investments aims to drive future growth and improve efficiency in both digital and physical sales channels.
Torrid Holdings Inc. faces challenges with decreased sales and increased tariff costs, but remains proactive in managing expenses and driving growth through sub-brands and marketing strategies.