Torrid’s fourth-quarter results led to a significant positive market reaction, driven by management’s focus on foundational changes in the business. CEO Lisa Harper pointed to the successful execution of store closures, the reintroduction of footwear, and improved product assortment as critical to enhancing operational efficiency. Management highlighted that customer retention remained strong even after optimizing the store footprint, with Harper stating, “Customer retention from last year’s store closures is meeting and, in many cases, exceeding our model.” These efforts, combined with an emphasis on core categories such as dresses and sub-brands, underpinned the company’s performance this quarter.
Is now the time to buy CURV? Find out in our full research report (it’s free for active Edge members).
Torrid (CURV) Q4 CY2025 Highlights:
- Revenue: $236.2 million vs analyst estimates of $231.1 million (14.3% year-on-year decline, 2.2% beat)
- Adjusted EPS: -$0.08 vs analyst estimates of -$0.13 (36% beat)
- Adjusted EBITDA: $5.15 million vs analyst estimates of $2.30 million (2.2% margin, significant beat)
- Revenue Guidance for Q1 CY2026 is $240 million at the midpoint, above analyst estimates of $237.7 million
- EBITDA guidance for the upcoming financial year 2026 is $70 million at the midpoint, above analyst estimates of $69.08 million
- Operating Margin: -2.1%, down from 1.3% in the same quarter last year
- Locations: 483 at quarter end, down from 634 in the same quarter last year
- Same-Store Sales fell 10% year on year (-0.8% in the same quarter last year)
- Market Capitalization: $169.8 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Torrid’s Q4 Earnings Call
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Janine Hoffman Stichter (BTIG) asked about the pace and scale of sub-brand growth. CEO Lisa Harper clarified that sub-brands should comprise a mid-teens percent of mix this year, with Festi highlighted for further expansion.
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Stichter (BTIG) also questioned strategies for reactivating lapsed customers. Chief Strategy and Planning Officer Ashlee Wheeler explained that economic pressure and price were key reasons for lapsing, and highlighted OPP and advanced segmentation as active solutions.
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Dana Telsey (Telsey Group) inquired about category drivers and tariff impacts for 2026. Harper detailed the phased return of footwear, new product launches, and ongoing management of tariff pressures with vendor partnerships.
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Brooke Roach (Goldman Sachs) probed changes in marketing and loyalty tactics. Harper described a shift from Torrid Cash reliance to targeted, price-pointed promotions and more frequent, personalized loyalty engagement.
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Corey Tarlowe (Jefferies) asked when Torrid would shift from defense (store closures) to offense (growth). Harper responded that 2026 is positioned as a year to maximize the benefits of transformation, with an emphasis on product and customer expansion.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be tracking (1) the effectiveness of Torrid’s customer reactivation and segmentation campaigns, (2) the full-scale relaunch and revenue contribution of the footwear business, and (3) the impact of new product rollouts such as bras and fleece programs on category growth. Execution in these areas will be key markers for sustained improvement.
Torrid currently trades at $1.71, up from $1.25 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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