Torrid reports Q2 EPS 2c, consensus 3c

Reports Q2 revenue $262.8M, consensus $259.4M. Comparable sales decreased 6.9% in Q2. “Our second quarter results were in line with our expectations for both sales and Adjusted EBITDA. Our strategic focus on sub-brands continues to drive positive market response, bringing innovation and diversity to our product assortments. We are proactively increasing our marketing investment to drive awareness and consideration in the back half of the year. For the full year, we are updating our guidance to reflect these incremental marketing investments and the new tariff rates. The final tariff announcements in July are expected to result in up to $10 million of additional expense exposure. In total, this represents an estimated $15 million headwind to Adjusted EBITDA(1). It is worth highlighting that through disciplined sourcing strategies and comprehensive expense optimization, we have already mitigated $40 million of tariff costs this year-demonstrating proactive management of external pressures while protecting profitability and reinforcing our commitment to delivering long-term shareholder value,” said Lisa Harper, CEO. “Looking ahead, our priorities are clear: elevating our assortment with innovative, high-margin sub-brands, expanding digital and influencer marketing to attract new customers, and optimizing our store fleet to both improve efficiency, customer experience and accelerate the growth of our leading digital channel. Together, these initiatives are expected to drive an increase of 150 to 250 basis points of Adjusted EBITDA(1) as a percentage of net sales, beginning in fiscal 2026, net of incremental marketing investments. At the same time, our disciplined capital allocation strategy-reducing debt and repurchasing shares-positions us to deliver stronger performance and long-term shareholder value.”