Torrid Raises Outlook for Tariff Refunds as Quarterly Sales Fall 11.8%

Comparable sales fell 6.3% for the quarter ended August 1. Chief executive Lisa Harper said sales trends improved during the quarter and pointed to a better balance of core and fashion assortments, stronger footwear inventory and expansion into third-party marketplaces.

Net income rose to $5.2 million from $1.6 million a year earlier. The quarter included $11.1 million in tariff refunds recorded against cost of goods sold and $0.3 million in related interest income. Those refunds materially changed the margin picture.

Reported gross margin reached 38.7%, compared with 35.6% a year earlier, but was 33.9% excluding the refund benefit. Adjusted EBITDA, a non-GAAP measure, was $23.3 million, or $12.1 million without the tariff refunds.

Torrid now expects full-year sales of $940 million to $960 million and adjusted EBITDA of $76 million to $86 million. It closed six stores during the quarter and finished with 457 locations, compared with 575 a year earlier.