Google Cloud secures £400 mln U.K. Ministry of Defence sovereign cloud deal
Investing.com -- Torrid Holdings Inc. (NYSE:CURV), a direct-to-consumer apparel brand for women sizes 10 to 30, reported second-quarter earnings that met analyst expectations but saw its shares tumble 13.5% postmarket Thursday after issuing disappointing guidance that fell well below market forecasts.
The company reported earnings per share of $0.02 for the second quarter ended August 2, 2025, matching analyst estimates. Revenue came in at $262.8 million, slightly above the consensus estimate of $259.38 million, but down 7.7% compared to $284.6 million in the same quarter last year. Comparable sales decreased 6.9% in the period.
Torrid’s stock plummeted after the company provided third-quarter revenue guidance of $235-245 million, significantly below analyst expectations of $259.4 million. For the full fiscal year, Torrid now expects revenue between $1.015-1.03 billion, also below the consensus estimate of $1.039 billion.
"Our second quarter results were in line with our expectations for both sales and Adjusted EBITDA," said Lisa Harper, Chief Executive Officer. "We are proactively increasing our marketing investment to drive awareness and consideration in the back half of the year."
The company cited new tariff announcements in July as creating "up to $10 million of additional expense exposure," despite having already mitigated $40 million in tariff costs this year through sourcing strategies and expense optimization.
Gross profit margin declined to 35.6% from 38.7% in the second quarter of last year, while adjusted EBITDA fell to $21.5 million, or 8.2% of net sales, compared to $34.6 million, or 12.2% of net sales, in the prior-year period.
Torrid closed 59 stores year-to-date, ending the quarter with 575 locations. The company plans up to 180 store closures for the full year "to better align our current demand and sales channels."
For the third quarter, Torrid expects adjusted EBITDA between $16 million and $21 million, while full-year adjusted EBITDA is projected at $80-90 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.