Overview

* Torrid fiscal Q2 net sales fall 7.7% to $262.8 mln, in line with company guidance but ahead of analysts' expectations

* Adjusted EBITDA for fiscal Q2 misses analysts' expectations, per LSEG data

* Net income for fiscal Q2 declines to $1.6 mln from $8.3 mln last year

Outlook

* Torrid expects Q3 net sales between $235 mln and $245 mln

* Company anticipates Q3 adjusted EBITDA between $16 mln and $21 mln

* Torrid sees full-year net sales between $1.015 bln and $1.030 bln

* Company expects full-year adjusted EBITDA between $80 mln and $90 mln

Result Drivers

* SUB-BRANDS STRATEGY - Torrid attributes positive market response to its strategic focus on sub-brands

* TARIFF MANAGEMENT - Co mitigated $40 mln in tariff costs through sourcing strategies, though new tariffs pose a $10 mln expense challenge

* MARKETING INVESTMENTS - Increased marketing spend planned to drive awareness and customer acquisition in the latter half of the year

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $262.81 $256.30

Revenue mln mln (5

Analysts

)

Q2 Net $1.57

Income mln

Q2 Miss $21.52 $24.10

Adjusted mln mln (3

EBITDA Analysts

)

Q2 EBIT $10.16

mln

Q2 Gross $93.49

Profit mln

Q2 $2.05

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the apparel & accessories retailers peer group is "buy."

* Wall Street's median 12-month price target for Torrid Holdings Inc ( CURV ) is $3.00, about 21.3% above its September 3 closing price of $2.36

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 38 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)