Torrid Holdings reported third quarter fiscal 2025 sales of $235 million, meeting the lower end of guidance; however, profitability was pressured by excessive promotional activity and assortment misalignments.

• Adjusted EBITDA reached $9.8 million, driven by mixed performance across categories, with strong results in denim and intimates offset by challenges in tops and jackets.
• Strategic shift towards more fashion-forward designs resulted in a notable sales miss, particularly in core product categories, prompting immediate corrective actions.
• Footwear sales noticeably declined due to a temporary pause in the category; however, early signs of recovery from a reintroduced assortment are promising.
• The company is rebalancing its assortment strategy to incorporate 30% opening price points, aimed at broadening market share and enhancing customer acquisition.
• Sub-brand initiatives are paying off, projected to generate approximately $80 million in sales this year, while new bra launches are set to innovate the intimates segment in 2026.