US' Torrid posts softer Q3; cuts stores & trims FY25 outlook

American women's retail chain Torrid Holdings Inc has reported a weaker third quarter (Q3) for the period ended November 01, 2025, as execution missteps and an imbalanced product mix weighed on performance.

Net sales fell 10.8 per cent to $235.2 million, while comparable sales declined 8.3 per cent. Gross margin slipped to 34.9 per cent from 36.1 per cent a year earlier. The company posted a net loss of $6.4 million, compared with a $1.2 million loss last year.

The retailer closed 74 stores year-to-date, ending the quarter with 560 locations. Adjusted EBITDA fell to $9.8 million, or 4.2 per cent of net sales, from $19.6 million a year ago, Torrid said in a media release.

Liquidity stood at $103.4 million, including $17.2 million in cash. Operating cash flow for the nine months turned negative at $7.1 million, compared with a $65.4 million inflow last year.

“Our third quarter results fell short of our expectations due to execution missteps that were largely within our control. While several core categories delivered strong comparable growth, these gains were more than offset by an imbalance in our assortment mix. We have already taken decisive corrective actions and are seeing early signs of improvement,” said Lisa Harper, chief executive officer.

For fiscal 2025 (FY25), Torrid expects net sales of $995 million to $1.002 billion and adjusted EBITDA of $59 million to $62 million. Capital expenditure is projected at $13 million to $15 million as the company invests in technology and infrastructure.

Torrid plans up to 180 store closures this year as part of its channel optimisation strategy. Higher US tariffs are expected to create a $50 million cost impact, though sourcing and pricing measures will mitigate $40 million of that exposure.

“Looking ahead, we have clear visibility into our path forward and are executing with urgency. We have strengthened our merchandising guardrails, rebalanced our assortment architecture, reintroduced a more profitable footwear program, and accelerated chase orders in key core categories. Our sub-brand strategy remains a powerful growth engine, our store optimisation program is performing exceptionally well, and we’re investing behind customer acquisition, loyalty, and brand-building initiatives. With these actions underway, we believe we are well positioned to deliver improved performance, strengthen profitability, and create long-term value for our customers and shareholders,” concluded Harper.

ALCHEMPro News Desk (HU)