FORM 10-Q Filing Information [Registrant Information](index=1&type=section&id=Registrant%20Information) Provides basic identification details for Torrid Holdings Inc.'s Form 10-Q, covering incorporation, address, and stock exchange - Registrant: **TORRID HOLDINGS INC.**[3](index=3&type=chunk) - Incorporation: **Delaware**[3](index=3&type=chunk) - Principal Executive Offices: **City of Industry, California**[3](index=3&type=chunk) Securities Registered | Title of each class | Trading Symbol | Name of each exchange on which registered | | :------------------ | :------------- | :---------------------------------------- | | Common stock, par value $0.01 per share | CURV | New York Stock Exchange | - As of September 1, 2025, approximately **99.2 million** shares of common stock were outstanding[5](index=5&type=chunk) FORWARD-LOOKING STATEMENTS [Nature of Forward-Looking Statements](index=3&type=section&id=Nature%20of%20Forward-Looking%20Statements) Clarifies forward-looking statements are subject to risks and uncertainties, potentially causing actual results to differ - Forward-looking statements reflect current expectations and projections relating to financial condition, results of operations, plans, objectives, future performance, and business[9](index=9&type=chunk) - Statements are subject to risks and uncertainties that may cause actual results to differ materially from expectations[9](index=9&type=chunk) [Key Risk Factors](index=3&type=section&id=Key%20Risk%20Factors) Identifies factors that could materially affect results, including economic conditions, supply chain, competition, and operations - Changes in consumer spending and general economic conditions[9](index=9&type=chunk) - Negative impact on revenue and profitability from new or increased duties/tariffs on imported goods[9](index=9&type=chunk) - Increased competition from other brands and retailers[9](index=9&type=chunk) - Dependence on third parties for merchandise manufacturing and transportation[9](index=9&type=chunk) - Reliance on information systems and risks related to system security or unauthorized data disclosure[13](index=13&type=chunk) - Substantial indebtedness and lease obligations, and restrictions imposed by debt[13](index=13&type=chunk) PART I — FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited condensed consolidated financial statements, including balance sheets, income, deficit, and cash flows [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | Item | August 2, 2025 | February 1, 2025 | | :-------------------------------- | :------------- | :--------------- | | **Assets** | | | | Cash and cash equivalents | $21,543 | $48,523 | | Inventory | $130,235 | $148,493 | | Total current assets | $189,086 | $226,166 | | Total assets | $414,465 | $488,441 | | **Liabilities and Stockholders' Deficit** | | | | Accounts payable | $53,198 | $72,378 | | Accrued and other current liabilities | $108,898 | $125,743 | | Total current liabilities | $228,191 | $263,132 | | Noncurrent debt, net | $264,337 | $272,409 | | Total liabilities | $615,581 | $679,530 | | Total stockholders' deficit | $(201,116) | $(191,089) | | Total liabilities and stockholders' deficit | $414,465 | $488,441 | - Total assets decreased from **$488.4 million** at February 1, 2025, to **$414.5 million** at August 2, 2025[17](index=17&type=chunk) - Total liabilities decreased from **$679.5 million** to **$615.6 million** over the same period[17](index=17&type=chunk) - Stockholders' deficit increased from **$(191.1) million** to **$(201.1) million**[17](index=17&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income (in thousands, except per share data) | Item | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net sales | $262,806 | $284,638 | $528,771 | $564,409 | | Gross profit | $93,488 | $110,258 | $194,890 | $225,679 | | Income from operations | $10,160 | $20,413 | $26,187 | $46,556 | | Net income | $1,567 | $8,328 | $7,507 | $20,500 | | Basic net earnings per share | $0.02 | $0.08 | $0.07 | $0.20 | | Diluted net earnings per share | $0.02 | $0.08 | $0.07 | $0.19 | - Net sales decreased by **7.7%** for the three months ended August 2, 2025, and by **6.3%** for the six months ended August 2, 2025, compared to the prior year periods[19](index=19&type=chunk) - Net income significantly decreased from **$8.3 million** to **$1.6 million** for the three-month period and from **$20.5 million** to **$7.5 million** for the six-month period year-over-year[19](index=19&type=chunk) [Condensed Consolidated Statements of Stockholders' Deficit](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Deficit) Changes in Stockholders' Deficit (in thousands) | Item | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :-------------------------------- | :------------------------------ | :------------------------------ | | Balance at beginning of period | $(191,089) | $(211,717) | | Net income | $7,507 | $20,500 | | Issuance of common shares and withholding tax payments | $(438) | $(419) | | Share-based compensation | $2,605 | $2,412 | | Purchase of common stock, including excise tax | $(20,285) | $0 | | Other comprehensive income (loss) | $391 | $(187) | | Balance at end of period | $(201,116) | $(188,946) | - Total stockholders' deficit increased from **$(191.1) million** at February 1, 2025, to **$(201.1) million** at August 2, 2025[21](index=21&type=chunk) - The company repurchased **6.0 million** shares of common stock for **$20.3 million** during the six months ended August 2, 2025[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | Activity | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :-------------------------------- | :------------------------------ | :------------------------------ | | Net cash (used in) provided by operating activities | $(2,270) | $68,447 | | Net cash used in investing activities | $(3,671) | $(10,180) | | Net cash used in financing activities | $(21,470) | $(15,981) | | (Decrease) increase in cash, cash equivalents and restricted cash | $(26,980) | $42,205 | | Cash, cash equivalents and restricted cash at end of period | $21,942 | $54,339 | - Operating activities shifted from providing **$68.4 million** in cash in the prior year to using **$2.3 million** in the current six-month period[25](index=25&type=chunk) - Investing activities used less cash, decreasing from **$10.2 million** to **$3.7 million**, primarily due to fewer store openings and remodels[25](index=25&type=chunk) - Financing activities used more cash, increasing from **$16.0 million** to **$21.5 million**, mainly due to share repurchases[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [Note 1. Basis of Presentation and Description of the Business](index=13&type=section&id=Note%201.%20Basis%20of%20Presentation%20and%20Description%20of%20the%20Business) Outlines corporate structure, fiscal year, financial statement presentation, business description, and accounting policies - **TORRID HOLDINGS INC.** is a direct-to-consumer brand specializing in apparel, intimates, and accessories for women wearing sizes **10** to **30**, primarily through its e-Commerce platform and stores in North America[33](index=33&type=chunk) - The fiscal year ends on the Saturday nearest to January **31**; fiscal years **2025** and **2024** are **52-week** years[30](index=30&type=chunk) - A change in significant accounting policies occurred for treasury stock, now recorded at cost as a separate component of stockholders' deficit[35](index=35&type=chunk)[36](index=36&type=chunk) [Note 2. Accounting Standards](index=14&type=section&id=Note%202.%20Accounting%20Standards) Discusses recently adopted and not yet adopted accounting standards, with no new adoptions in current interim periods - No new accounting standards were adopted during the three- and six-month periods ended August 2, 2025[39](index=39&type=chunk) - ASU 2023-09 (Income Taxes: Improvements to Income Tax Disclosures) is effective for fiscal year ended January 31, 2026, and the company is evaluating its impact[40](index=40&type=chunk) - ASU 2024-03 (Expense Disaggregation Disclosures) is effective for annual periods beginning after December 15, 2026, and the company is evaluating its impact[41](index=41&type=chunk) [Note 3. Property and Equipment](index=15&type=section&id=Note%203.%20Property%20and%20Equipment) Summarizes property and equipment, net of depreciation, showing a decrease in net value; no impairment charges Property and Equipment, Net (in thousands) | Item | August 2, 2025 | February 1, 2025 | | :-------------------------------- | :------------- | :--------------- | | Property and equipment, at cost | $305,925 | $323,230 | | Less: accumulated depreciation and amortization | $(242,253) | $(245,561) | | Property and equipment, net | $63,672 | $77,669 | - Depreciation expense was **$9.4 million** for the three months and **$18.8 million** for the six months ended August 2, 2025[44](index=44&type=chunk) - No impairment charges were recognized during the three- and six-month periods ended August 2, 2025, or August 3, 2024[45](index=45&type=chunk) [Note 4. Revenue Recognition](index=15&type=section&id=Note%204.%20Revenue%20Recognition) Disaggregates revenue by product category and details contract liabilities; apparel remains largest component Revenue by Product Category (in thousands) | Category | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Apparel | $241,411 | $259,782 | $481,198 | $512,515 | | Non-apparel | $13,457 | $17,536 | $31,710 | $37,828 | | Other | $7,938 | $7,320 | $15,863 | $14,066 | | Total net sales | $262,806 | $284,638 | $528,771 | $564,409 | Contract Liabilities (in thousands) | Item | August 2, 2025 | February 1, 2025 | | :-------------------------------- | :------------- | :--------------- | | Accrued loyalty program | $10,610 | $10,887 | | Gift cards | $11,590 | $13,676 | | Deferred revenue | $3,374 | $2,777 | | Deferred PLCC Funds | $3,208 | $3,458 | - Revenue recognized from accrued loyalty program, gift cards, and deferred PLCC Funds from the beginning of fiscal year 2025 was **$1.3 million**, **$0.8 million**, and **$0.2 million**, respectively, for the three-month period[50](index=50&type=chunk) [Note 5. Related Party Transactions](index=16&type=section&id=Note%205.%20Related%20Party%20Transactions) Details transactions with related parties, including services, merchandise purchases, and a share repurchase - Hot Topic charged Torrid **$0.5 million** for services in the three months ended August 2, 2025, and Torrid charged Hot Topic **$0.1 million** for IT services[53](index=53&type=chunk)[55](index=55&type=chunk) - Cost of goods sold included **$8.8 million** from MGF Sourcing US, LLC for the three months ended August 2, 2025[59](index=59&type=chunk) - On June 23, 2025, Torrid repurchased **6.0 million** shares of common stock from **Sycamore** for **$20.0 million** in a private transaction[61](index=61&type=chunk) [Note 6. Debt](index=17&type=section&id=Note%206.%20Debt) Provides details on company debt, including ABL Facility and Term Loan, with ABL maturity extended to 2030 Debt Composition (in thousands) | Item | August 2, 2025 | February 1, 2025 | | :-------------------------------- | :------------- | :--------------- | | Borrowings under credit facility (ABL) | $7,900 | $0 | | Amended Term Loan Credit Agreement | $284,375 | $293,125 | | Less: unamortized original issue discount and debt financing costs | $(3,894) | $(4,572) | | Noncurrent debt, net | $264,337 | $272,409 | - The **Amended ABL Facility**'s maturity date was extended from June 14, 2026, to August 1, 2030[63](index=63&type=chunk) - As of August 2, 2025, availability under the **Amended ABL Facility** was **$90.2 million**[64](index=64&type=chunk) - Interest expense for the **Amended Term Loan Credit Agreement** was **$7.4 million** for the three months and **$14.9 million** for the six months ended August 2, 2025[68](index=68&type=chunk) [Note 7. Leases](index=18&type=section&id=Note%207.%20Leases) Details company lease costs, primarily fixed operating and variable, showing a slight decrease year-over-year Lease Costs (in thousands) | Item | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Fixed operating lease cost | $11,956 | $12,663 | $24,374 | $25,808 | | Short-term lease cost | $21 | $40 | $43 | $79 | | Variable lease cost | $5,613 | $5,539 | $11,278 | $11,137 | | Total lease cost | $17,590 | $18,242 | $35,695 | $37,024 | [Note 8. Income Taxes](index=19&type=section&id=Note%208.%20Income%20Taxes) Provides income tax provision and effective tax rates, impacted by non-deductible compensation and new legislation Income Tax Provision and Effective Tax Rate | Item | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Provision for income taxes | $0.5 million | $3.1 million | $3.1 million | $7.6 million | | Effective tax rate | **23.7%** | **26.9%** | **29.4%** | **26.9%** | - The decrease in the three-month effective tax rate was primarily due to a decrease in non-deductible compensation[71](index=71&type=chunk) - The '**One Big Beautiful Bill Act**' was signed into law on July 4, 2025, allowing more favorable deductibility of certain business expenses, with an immaterial impact expected for the current year[72](index=72&type=chunk)[73](index=73&type=chunk) [Note 9. Commitments and Contingencies](index=19&type=section&id=Note%209.%20Commitments%20and%20Contingencies) Discloses ongoing legal proceedings, including class action lawsuits, with $4.1 million accrued for probable losses - A class action complaint filed in April 2024 alleges misleading and unlawful pricing, sales, and discounting practices; a proposed settlement agreement was reached in May 2025[74](index=74&type=chunk) - Six class action lawsuits were consolidated in February 2025, alleging failure to protect data after a potential unauthorized access incident[75](index=75&type=chunk) - Accrued legal liabilities were **$4.1 million** as of August 2, 2025, for estimated probable losses[74](index=74&type=chunk) [Note 10. Earnings Per Share](index=20&type=section&id=Note%2010.%20Earnings%20Per%20Share) Provides computation of basic and diluted net earnings per share, showing a decrease from the prior year Net Earnings Per Share (in thousands, except per share amounts) | Item | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net income—basic and diluted | $1,567 | $8,328 | $7,507 | $20,500 | | Weighted-average number of shares—basic | 102,470 | 104,500 | 103,699 | 104,384 | | Weighted-average number of shares—diluted | 102,746 | 106,074 | 104,400 | 105,728 | | Basic net earnings per share | $0.02 | $0.08 | $0.07 | $0.20 | | Diluted net earnings per share | $0.02 | $0.08 | $0.07 | $0.19 | Potentially Dilutive Securities Excluded (in thousands) | Item | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Restricted stock awards, restricted stock units and performance stock units | 708 | 31 | 312 | 51 | | Stock options | 2,597 | 1,461 | 2,321 | 1,383 | | Total anti-dilutive securities | 3,305 | 1,492 | 2,633 | 1,434 | [Note 11. Fair Value Measurements](index=21&type=section&id=Note%2011.%20Fair%20Value%20Measurements) Provides fair value measurements for financial assets and liabilities, including money market funds and term loan Fair Value Measurements (in thousands) | Item | August 2, 2025 | February 1, 2025 | | :-------------------------------- | :------------- | :--------------- | | Money market funds (cash equivalent) | $151 | $31,727 | | Deferred compensation plan liability (current) | $224 | $1,767 | | Deferred compensation plan liability (noncurrent) | $3,801 | $3,913 | | Fair value of Amended Term Loan Credit Agreement | $253,100 | $274,100 | - The fair value of money market funds is based on quoted prices in active markets (Level **1**)[81](index=81&type=chunk) - The fair value of the **Amended Term Loan Credit Agreement** is determined using current applicable rates for similar instruments (Level **2**)[83](index=83&type=chunk) [Note 12. Segment Reporting](index=22&type=section&id=Note%2012.%20Segment%20Reporting) States the company operates as a single reportable segment, managed on a consolidated net income basis - Torrid has one reportable segment, including e-Commerce and stores, managed by the CEO based on consolidated net income[84](index=84&type=chunk) Segment Information (in thousands) | Item | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net sales | $262,806 | $284,638 | $528,771 | $564,409 | | Net income | $1,567 | $8,328 | $7,507 | $20,500 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion of financial condition, operations, liquidity, and cash flows, including performance factors [Overview](index=23&type=section&id=Overview) Torrid is a direct-to-consumer brand offering apparel, intimates, and accessories for curvy women - Torrid is a direct-to-consumer brand offering stylish, comfortable, and affordable apparel, intimates, and accessories for curvy women in sizes **10** to **30**[89](index=89&type=chunk) - The company is implementing a retail store optimization strategy, having closed **59** stores through Q2 FY2025 and targeting up to **120** additional closures for the remainder of FY2025[90](index=90&type=chunk) [Key Financial and Operating Metrics](index=23&type=section&id=Key%20Financial%20and%20Operating%20Metrics) Presents key financial and operating metrics, including store count, comparable sales, net income, and Adjusted EBITDA Key Financial and Operating Metrics | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Number of stores (as of end of period) | 575 | 657 | 575 | 657 | | Comparable sales | (7)% | (1)% | (5)% | (5)% | | Net income (in thousands) | $1,567 | $8,328 | $7,507 | $20,500 | | Adjusted EBITDA (in thousands) | $21,525 | $34,592 | $48,653 | $72,820 | - Comparable sales decreased by **7%** for the three months and **5%** for the six months ended August 2, 2025[92](index=92&type=chunk) - Adjusted EBITDA decreased by **37.8%** for the three months and **33.2%** for the six months ended August 2, 2025[92](index=92&type=chunk) [Factors Affecting Our Performance](index=24&type=section&id=Factors%20Affecting%20Our%20Performance) Identifies internal and external factors influencing performance, including consumer spending, economic trends, and marketing - Success depends on efficient and profitable customer acquisition and retention, with omni-channel customers spending approximately **3.5 times** more per year[100](index=100&type=chunk)[102](index=102&type=chunk) - Overall economic trends, including high inflation rates, have led to softening consumer demand and increased costs for wages, transportation, and products[103](index=103&type=chunk) - The company plans to continue investing in brand awareness, customer engagement, and conversion through targeted marketing and infrastructure enhancements[105](index=105&type=chunk)[107](index=107&type=chunk) - The business is generally not seasonal, with Adjusted EBITDA typically strongest in the first half of the year due to more favorable product margins and lower expenses[108](index=108&type=chunk) [Components of Our Results of Operations](index=26&type=section&id=Components%20of%20Our%20Results%20of%20Operations) Defines key components of results of operations: net sales, gross profit, SG&A, marketing, and interest expense - Net Sales: Includes merchandise sales, shipping revenue, royalties, PLCC Funds, and gift card breakage income, less returns and discounts[110](index=110&type=chunk) - Gross Profit: Net sales less cost of goods sold, which includes merchandise costs, freight, inventory shrinkage, payroll, distribution center, and store occupancy expenses[111](index=111&type=chunk) - Selling, General and Administrative Expenses: All operating costs not included in cost of goods sold or marketing expenses[112](index=112&type=chunk) - Marketing Expenses: Primarily targeted online performance marketing, store and brand marketing, public relations, photographic production, and marketing team payroll[113](index=113&type=chunk) - Interest Expense: Primarily associated with the **Amended ABL Facility** and **Amended Term Loan Credit Agreement**[114](index=114&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) [Three Months Ended August 2, 2025 Compared to Three Months Ended August 3, 2024](index=27&type=section&id=Three%20Months%20Ended%20August%202%2C%202025%20Compared%20to%20Three%20Months%20Ended%20August%203%2C%202024) Net sales decreased by 7.7% to $262.8 million, gross profit declined by 15.2%, and net income fell significantly Consolidated Results of Operations (Three Months Ended, in thousands) | Item | August 2, 2025 | % of Net Sales | August 3, 2024 | % of Net Sales | | :-------------------------------- | :------------- | :------------- | :------------- | :------------- | | Net sales | $262,806 | 100.0% | $284,638 | 100.0% | | Cost of goods sold | $169,318 | 64.4% | $174,380 | 61.3% | | Gross profit | $93,488 | 35.6% | $110,258 | 38.7% | | Selling, general and administrative expenses | $70,511 | 26.8% | $76,838 | 27.0% | | Marketing expenses | $12,817 | 4.9% | $13,007 | 4.6% | | Income from operations | $10,160 | 3.9% | $20,413 | 7.1% | | Net income | $1,567 | 0.6% | $8,328 | 2.9% | - Net sales decreased by **$21.8 million** (**7.7%**) due to lower sales transaction values and a reduction of **82** stores[118](index=118&type=chunk) - Gross profit decreased by **$16.8 million** (**15.2%**), and gross profit as a percentage of net sales decreased by **3.1%** to **35.6%**[119](index=119&type=chunk) - Selling, general and administrative expenses decreased by **$6.3 million** (**8.2%**), primarily due to lower payroll and other store operating costs[120](index=120&type=chunk) - Adjusted EBITDA decreased from **$34.6 million** to **$21.5 million**[116](index=116&type=chunk) [Six Months Ended August 2, 2025 Compared to Six Months Ended August 3, 2024](index=29&type=section&id=Six%20Months%20Ended%20August%202%2C%202025%20Compared%20to%20Six%20Months%20Ended%20August%203%2C%202024) Net sales decreased by 6.3% to $528.8 million, gross profit declined by 13.6%, and net income fell significantly Consolidated Results of Operations (Six Months Ended, in thousands) | Item | August 2, 2025 | % of Net Sales | August 3, 2024 | % of Net Sales | | :-------------------------------- | :------------- | :------------- | :------------- | :------------- | | Net sales | $528,771 | 100.0% | $564,409 | 100.0% | | Cost of goods sold | $333,881 | 63.1% | $338,730 | 60.0% | | Gross profit | $194,890 | 36.9% | $225,679 | 40.0% | | Selling, general and administrative expenses | $140,527 | 26.6% | $153,304 | 27.2% | | Marketing expenses | $28,176 | 5.3% | $25,819 | 4.6% | | Income from operations | $26,187 | 5.0% | $46,556 | 8.2% | | Net income | $7,507 | 1.4% | $20,500 | 3.6% | - Net sales decreased by **$35.6 million** (**6.3%**) primarily due to a decrease in sales transaction values[128](index=128&type=chunk) - Gross profit decreased by **$30.8 million** (**13.6%**), and gross profit as a percentage of net sales decreased by **3.1%** to **36.9%**[130](index=130&type=chunk) - Marketing expenses increased by **$2.4 million** (**9.1%**) due to increased social media spend, retargeting, and photographic production[132](index=132&type=chunk) - Adjusted EBITDA decreased from **$72.8 million** to **$48.7 million**[125](index=125&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses liquidity sources (cash flows, ABL Facility) and primary cash needs (inventory, payroll, capital expenditures) - Primary liquidity source is cash flows from operations, supplemented by the **Amended ABL Facility**[135](index=135&type=chunk) Liquidity Position (in thousands) | Item | August 2, 2025 | | :-------------------------------- | :------------- | | Cash and cash equivalents | $21,543 | | Outstanding indebtedness (net) | $288,400 | | Borrowings on ABL Facility | $7,900 | | Term loans under Amended Term Loan Credit Agreement | $280,500 | | Additional liquidity from ABL Facility | $90,200 | - The **Amended ABL Facility** maturity was extended to August 1, 2030, and the company remains compliant with all debt covenants[137](index=137&type=chunk)[139](index=139&type=chunk) - Primary cash needs include merchandise inventories, payroll, rent, capital expenditures, logistics, and information technology[143](index=143&type=chunk) - A **$20.0 million** share repurchase from **Sycamore** occurred on June 23, 2025[144](index=144&type=chunk) [Cash Flow Analysis](index=32&type=section&id=Cash%20Flow%20Analysis) Analyzes cash flows from operating, investing, and financing activities, highlighting significant year-over-year changes Cash Flow Summary (in thousands) | Activity | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :-------------------------------- | :------------------------------ | :------------------------------ | | Net cash (used in) provided by operating activities | $(2,270) | $68,447 | | Net cash used in investing activities | $(3,671) | $(10,180) | | Net cash used in financing activities | $(21,470) | $(15,981) | - Operating cash flow shifted from a **$68.4 million** inflow to a **$2.3 million** outflow, primarily due to decreases in accounts payable and accrued expenses[148](index=148&type=chunk) - Investing cash used decreased from **$10.2 million** to **$3.7 million**, driven by fewer new store openings and remodels[150](index=150&type=chunk) - Financing cash used increased from **$16.0 million** to **$21.5 million**, mainly due to the repurchase of common stock[152](index=152&type=chunk) [Critical Accounting Policies and Estimates](index=32&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) No material changes to critical accounting policies and estimates since the 2024 Form 10-K filing - No material changes to critical accounting policies and estimates since the 2024 Form 10-K[153](index=153&type=chunk) [Recently Issued Accounting Pronouncements](index=33&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) Refers to Note 2 for detailed information regarding recently issued accounting pronouncements - Refer to Note **2** for information regarding recently issued accounting pronouncements[154](index=154&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the market risk profile as disclosed in the 2024 Form 10-K - No material changes to the market risk profile as of August 2, 2025, compared to the 2024 Form 10-K[155](index=155&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective; a new ERP system implementation involved control modifications - Disclosure controls and procedures were effective as of August 2, 2025[156](index=156&type=chunk) - A new ERP system was implemented for financial accounting systems, leading to new and modified internal controls[157](index=157&type=chunk) - No other material changes in internal control over financial reporting occurred during the fiscal quarter[157](index=157&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 9 for legal proceedings; no other litigation expected to materially affect financial statements - Refer to Note **9** for information regarding certain legal proceedings[160](index=160&type=chunk) - No other current litigation is expected to have a material adverse effect on the business, financial condition, operating results, or cash flows[161](index=161&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2024 Form 10-K - No material changes to the risk factors disclosed in the 2024 Form 10-K[162](index=162&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details share repurchase activities, including a private transaction with Sycamore for $20.0 million Issuer Purchases of Equity Securities | Period | Total number of shares purchased | Average price paid per share | Maximum dollar value of shares that may yet to be purchased under the plans or programs | | :-------------------------------- | :------------------------------- | :--------------------------- | :-------------------------------------------------------------------------------- | | June 1, 2025 - July 5, 2025 | 6,030,908 | $3.31625 | $44,946,650 | - On June 23, 2025, the company repurchased **6.0 million** shares of common stock from **Sycamore** for **$20.0 million** in a private transaction[164](index=164&type=chunk) - The repurchase was part of a **$100.0 million** share repurchase program authorized on December 6, 2021[163](index=163&type=chunk) [Item 3. Defaults Upon Senior Securities](index=34&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities during the reporting period - No defaults upon senior securities[165](index=165&type=chunk) [Item 4. Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the company's operations - Mine Safety Disclosures are not applicable[166](index=166&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) Confirms no other material information and no Rule 10b5-1 trading arrangement changes by officers/directors - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the fiscal quarter ended August 2, 2025[168](index=168&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including corporate governance, debt agreements, and certifications - Includes Amended and Restated Certificate of Incorporation and Bylaws[169](index=169&type=chunk) - Lists the Stock Repurchase Agreement dated June 23, 2025, and the Fifth Amendment to Amended and Restated Credit Agreement dated August 1, 2025[169](index=169&type=chunk) - Contains certifications from the Principal Executive Officer and Principal Financial Officer (Sections **302** and **906** of Sarbanes-Oxley Act)[169](index=169&type=chunk) SIGNATURES [Report Signatories](index=36&type=section&id=Report%20Signatories) Confirms official signing of the Form 10-Q report by the Chief Executive Officer and Chief Financial Officer - Report signed on September 11, 2025[171](index=171&type=chunk) - Signed by Lisa Harper, Chief Executive Officer and Director (Principal Executive Officer)[173](index=173&type=chunk) - Signed by Paula Dempsey, Chief Financial Officer (Principal Financial Officer)[173](index=173&type=chunk)

Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective [1] - The approach does not prioritize market-driven dynamics or future price action, instead emphasizing the long-term earnings potential of companies [1] - The majority of recommendations will be holds, indicating a cautious approach to market conditions and a belief that only a small fraction of companies are suitable for buying at any given time [1] Group 2 - The articles aim to provide valuable information for future investors while maintaining a healthy skepticism towards a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, emphasizing the need for readers to conduct their own due diligence [2][3]

Company Overview - Torrid Holdings Inc. (NYSE:CURV) is a leading direct-to-consumer brand specializing in apparel, intimates, and accessories for women sizes 10 to 30, based in the City of Industry, California [1] Earnings Report - On September 4, 2025, CURV reported earnings per share (EPS) of $0.02, missing the Zacks Consensus Estimate of $0.04, representing a 50% negative surprise and a decline from the $0.08 EPS reported in the same quarter last year [2][6] - CURV has a history of surpassing consensus EPS estimates twice in the past four quarters [2] Revenue Performance - CURV generated $262.81 million in revenue for the quarter ending in July 2025, exceeding the Zacks Consensus Estimate by 1.24%, but this is a decrease from the $284.64 million in revenue from the same period last year [3][6] - The company has outperformed consensus revenue estimates twice in the last four quarters, indicating strong sales performance [3] Financial Metrics - CURV has a price-to-earnings (P/E) ratio of approximately 24.76, indicating how the market values its earnings [4][6] - The price-to-sales ratio is about 0.23, suggesting the market value relative to its revenue [4][6] - The enterprise value to sales ratio is around 0.62, reflecting the company's total valuation compared to its sales [4] Capital Structure - The company's debt-to-equity ratio is -2.44, indicating a unique capital structure [5] - The current ratio of approximately 0.87 shows CURV's ability to cover short-term liabilities with short-term assets [5] - CURV offers an earnings yield of about 4.04%, providing a return on investment for shareholders despite the recent earnings shortfall [5]

Core Insights - Torrid Holdings reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.04 per share, and down from $0.08 per share a year ago, representing an earnings surprise of -50.00% [1] - The company posted revenues of $262.81 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 1.24%, but down from $284.64 million year-over-year [2] - Torrid Holdings shares have declined approximately 54.9% year-to-date, contrasting with the S&P 500's gain of 9.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $255.37 million, and for the current fiscal year, it is $0.14 on revenues of $1.04 billion [7] - The estimate revisions trend for Torrid Holdings was favorable prior to the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Retail - Apparel and Shoes industry, to which Torrid Holdings belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Stitch Fix, is expected to report a quarterly loss of $0.13 per share, reflecting a year-over-year change of -8.3%, with revenues projected at $301.33 million, down 5.7% from the previous year [9]

Financial Data and Key Metrics Changes - Net sales for Q2 were $262.8 million, down from $284.6 million year-over-year, with comparable sales declining 6.9% [14][15] - Gross profit decreased to $93.5 million from $110.3 million, resulting in a gross margin of 35.6%, down from 38.7% [14][15] - Net income was $1.6 million or $0.02 per share, compared to $8.3 million or $0.08 per share in the prior year [15] - Adjusted EBITDA was $21.5 million, representing an 8.2% margin, down from $34.6 million and 12.2% margin last year [15] Business Line Data and Key Metrics Changes - Strong performance was noted in bottoms (denim and non-denim), dresses, and swim, while tops experienced softness due to graphic tees and crop tops [6][14] - Sub-brands are expected to represent 25% to 30% of the total assortment next year, with a current expectation of 10% for this year [24][25] Market Data and Key Metrics Changes - Digital sales are approaching 70% of total demand, indicating a significant shift in customer preferences [9] - Customer retention from store closures is performing at target rates, with a goal to retain at least 60% of customers [10][17] Company Strategy and Development Direction - The company is executing a store optimization plan, closing up to 180 stores to reallocate resources and respond to customer shopping preferences [4][11] - Increased marketing investments are planned to enhance brand awareness and customer acquisition, with an additional $5 million allocated for the second half of the year [9][19] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer sentiment remains cautious, with a focus on value orientation due to economic pressures [5][27] - The company anticipates a full-year net sales range of $1.015 billion to $1.030 billion, with adjusted EBITDA expected between $80 million and $90 million [19][20] Other Important Information - The company repurchased approximately 6 million shares at $3.50 per share, utilizing $20 million of cash [16] - Total liquidity remains strong at $111.7 million, with total debt reduced to $288.4 million [16][18] Q&A Session Summary Question: Health of customer and appetite for newness - Management indicated strong health among existing customers, particularly top-tier customers, with positive reactions to new sub-brands [23] Question: EBITDA outlook change - The impact of tariffs and additional promotional activities were discussed as factors affecting EBITDA outlook [28][29] Question: Performance exiting Q2 through August - The business showed softer performance during peak holiday periods but had a strong June semi-annual sale [43] Question: Customer pushback on price increases - Price increases related to tariffs were minimal and specific, with ongoing concerns about pricing from customers [45][46]

Executive Summary [Introduction and CEO Commentary](index=1&type=section&id=1.1%20Introduction%20and%20CEO%20Commentary) Torrid's Q2 FY2025 results met expectations, driven by sub-brand focus, with updated guidance reflecting increased marketing and tariff impacts - Second quarter **sales and Adjusted EBITDA** were in line with expectations[2](index=2&type=chunk) - Strategic focus on sub-brands continues to drive positive market response and product innovation[2](index=2&type=chunk) - Increased marketing investment in the second half aims to boost awareness and consideration[2](index=2&type=chunk) - Updated full-year guidance incorporates incremental marketing and new tariffs, projecting an estimated **$15 million headwind to Adjusted EBITDA**[2](index=2&type=chunk) - **$40 million** of tariff costs were mitigated through disciplined sourcing and expense optimization[2](index=2&type=chunk) - Future priorities include elevating assortment with innovative sub-brands, expanding digital marketing, and optimizing the store fleet[2](index=2&type=chunk) - Initiatives are projected to increase **Adjusted EBITDA margin by 150 to 250 basis points** starting in fiscal 2026[2](index=2&type=chunk) - Disciplined capital allocation strategy includes debt reduction and share repurchases[2](index=2&type=chunk) Second Quarter Fiscal 2025 Financial Highlights [Key Financial and Operating Metrics](index=1&type=section&id=2.1%20Key%20Financial%20and%20Operating%20Metrics) Q2 FY2025 saw decreased net sales, comparable sales, net income, and Adjusted EBITDA, alongside a reduced store count Key Financial and Operating Metrics | Metric | August 2, 2025 | August 3, 2024 | | :-------------------------- | :------------- | :------------- | | Net sales (in thousands) | $262,806 | $284,638 | | Comparable sales | (7)% | (1)% | | Number of stores | 575 | 657 | | Net income (in thousands) | $1,567 | $8,328 | | Adjusted EBITDA (in thousands) | $21,525 | $34,592 | [Balance Sheet and Cash Flow Summary](index=1&type=section&id=2.2%20Balance%20Sheet%20and%20Cash%20Flow%20Summary) Q2 FY2025 ended with **$21.5 million** cash, **$111.7 million** liquidity, and **$2.3 million** net cash used in operations - Cash and cash equivalents totaled **$21.5 million** at Q2 FY2025 end[5](index=5&type=chunk) - Total liquidity, including available borrowing capacity, was **$111.7 million** at quarter-end[5](index=5&type=chunk) - Net cash used in operating activities for the six months ended August 2, 2025, was **$2.3 million**, a shift from **$68.4 million** provided last year[5](index=5&type=chunk) [Q2 Fiscal 2025 Performance Summary](index=1&type=section&id=2.3%20Q2%20Fiscal%202025%20Performance%20Summary) Q2 FY2025 net sales decreased **7.7%** to **$262.8 million**, with comparable sales down **6.9%**, and Adjusted EBITDA at **$21.5 million** - Net sales decreased **7.7%** to **$262.8 million** from **$284.6 million** in the prior year's second quarter[7](index=7&type=chunk) - Comparable sales decreased **6.9%** in the second quarter[7](index=7&type=chunk) - Gross profit margin was **35.6%**, down from **38.7%** in the prior year's second quarter[7](index=7&type=chunk) - Net income was **$1.6 million** (**$0.02 per share**), down from **$8.3 million** (**$0.08 per share**) last year[7](index=7&type=chunk) - Adjusted EBITDA was **$21.5 million** (**8.2% of net sales**), compared to **$34.6 million** (**12.2% of net sales**) in the prior year[7](index=7&type=chunk) - **59 Torrid stores** were closed year-to-date, bringing the total store count to **575**[7](index=7&type=chunk) Company Overview [About Torrid](index=2&type=section&id=3.1%20About%20Torrid) Torrid is a direct-to-consumer brand offering stylish, comfortable, and affordable apparel for curvy women in sizes 10 to 30 - Torrid is a direct-to-consumer brand in North America offering stylish apparel, intimates, and accessories for women sizes **10 to 30**[11](index=11&type=chunk) - Primary focus is on providing fashionable, comfortable, and affordable options for curvy customers[11](index=11&type=chunk) - Exclusive, meticulously crafted products aim to build meaningful connections with curvy customers[11](index=11&type=chunk) Outlook and Guidance [Third Quarter Fiscal 2025 Outlook](index=2&type=section&id=4.1%20Third%20Quarter%20Fiscal%202025%20Outlook) Q3 FY2025 net sales are projected between **$235 million** and **$245 million**, with Adjusted EBITDA between **$16 million** and **$21 million** Third Quarter Fiscal 2025 Outlook | Metric | Q3 Fiscal 2025 Outlook | | :----------- | :--------------------- | | Net sales | $235 million - $245 million | | Adjusted EBITDA | $16 million - $21 million | [Full Year Fiscal 2025 Outlook](index=2&type=section&id=4.2%20Full%20Year%20Fiscal%202025%20Outlook) Full-year FY2025 guidance projects net sales of **$1.015-1.030 billion**, Adjusted EBITDA of **$80-90 million**, and up to **180 store closures** Full Year Fiscal 2025 Outlook | Metric | Full Year Fiscal 2025 Outlook | | :-------------------- | :---------------------------- | | Net sales | $1.015 billion - $1.030 billion | | Adjusted EBITDA | $80 million - $90 million | | Capital expenditures | $10 million - $15 million | | Store closures | Up to 180 | | Tariff impact (net) | Up to $10 million exposure (after $40 million mitigation) | Financial Statements [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=5.1%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q2 FY2025 unaudited comprehensive income statements show declines in net sales, gross profit, and net income year-over-year Condensed Consolidated Statements of Comprehensive Income (in thousands, except per share data) | Metric (in thousands) | August 2, 2025 | August 3, 2024 | | :---------------------------------- | :------------- | :------------- | | Net sales | $262,806 | $284,638 | | Cost of goods sold | $169,318 | $174,380 | | Gross profit | $93,488 | $110,258 | | Selling, general and administrative expenses | $70,511 | $76,838 | | Marketing expenses | $12,817 | $13,007 | | Income from operations | $10,160 | $20,413 | | Interest expense | $8,119 | $9,142 | | Income before provision for income taxes | $2,054 | $11,395 | | Provision for income taxes | $487 | $3,067 | | Net income | $1,567 | $8,328 | | Net earnings per share: Basic | $0.02 | $0.08 | | Net earnings per share: Diluted | $0.02 | $0.08 | | Comprehensive income | $1,583 | $8,230 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=5.2%20Condensed%20Consolidated%20Balance%20Sheets) Q2 FY2025 balance sheets show decreased total assets and increased stockholders' deficit, with reduced cash and higher credit facility borrowings Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :---------------------------------- | :------------- | :--------------- | :------------- | | Cash and cash equivalents | $21,543 | $48,523 | $53,940 | | Inventory | $130,235 | $148,493 | $128,431 | | Total current assets | $189,086 | $226,166 | $217,199 | | Total assets | $414,465 | $488,441 | $487,489 | | Accounts payable | $53,198 | $72,378 | $68,371 | | Borrowings under credit facility | $7,900 | — | — | | Noncurrent debt, net | $264,337 | $272,409 | $280,481 | | Total liabilities | $615,581 | $679,530 | $676,435 | | Total stockholders' deficit | $(201,116) | $(191,089) | $(188,946) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=5.3%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Six months ended August 2, 2025, saw **$2.3 million** net cash used in operations, a shift from prior year's cash provided Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :------------------------------------------------ | :------------------------------ | :------------------------------ | | Net income | $7,507 | $20,500 | | Net cash (used in) provided by operating activities | $(2,270) | $68,447 | | Purchases of property and equipment | $(3,671) | $(10,180) | | Net cash used in investing activities | $(3,671) | $(10,180) | | Proceeds from revolving credit facility | $171,650 | $62,780 | | Principal payments on revolving credit facility | $(163,750) | $(70,050) | | Share repurchase, including excise tax paid | $(20,000) | — | | Net cash used in financing activities | $(21,470) | $(15,981) | | (Decrease) increase in cash, cash equivalents and restricted cash | $(26,980) | $42,205 | | Cash, cash equivalents and restricted cash at end of period | $21,942 | $54,339 | Non-GAAP Financial Measures & Reconciliation [Non-GAAP Financial Measures Explanation](index=2&type=section&id=6.1%20Non-GAAP%20Financial%20Measures%20Explanation) Adjusted EBITDA is a non-GAAP measure used for evaluating operations and planning, providing supplemental performance insights - Adjusted EBITDA is a non-GAAP financial measure used by management for evaluating ongoing operations and internal planning[14](index=14&type=chunk)[16](index=16&type=chunk) - Adjusted EBITDA adjusts GAAP net income for interest, taxes, depreciation, amortization, share-based compensation, and other non-cash items[15](index=15&type=chunk) - It facilitates operating performance comparisons by isolating items unrelated to ongoing operations[16](index=16&type=chunk) - Adjusted EBITDA has analytical limitations and should not be considered in isolation or as a GAAP alternative[18](index=18&type=chunk) [Non-GAAP Reconciliation](index=9&type=section&id=6.2%20Non-GAAP%20Reconciliation) This section details the reconciliation of net income to Adjusted EBITDA for the three months ended August 2, 2025, and August 3, 2024 Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric (in thousands) | August 2, 2025 | August 3, 2024 | | :---------------------------------- | :------------- | :------------- | | Net income | $1,567 | $8,328 | | Interest expense | $8,119 | $9,142 | | Interest income, net of other (income) expense | $(13) | $(124) | | Provision for income taxes | $487 | $3,067 | | Depreciation and amortization | $9,430 | $8,922 | | Share-based compensation | $1,371 | $2,188 | | Noncash deductions and charges | $23 | $125 | | Other expenses | $541 | $2,944 | | Adjusted EBITDA | $21,525 | $34,592 | Forward-Looking Statements & Risks [Forward-Looking Statements](index=3&type=section&id=7.1%20Forward-Looking%20Statements) This section details forward-looking statements, including financial projections and strategic initiatives, alongside associated risks and uncertainties - All statements regarding expected Q3 and full-year fiscal 2025 performance and future plans are forward-looking[20](index=20&type=chunk) - Key risks include changes in consumer spending, economic conditions, tariffs, supply chain interruptions, high interest rates, inflation, and regulatory changes[20](index=20&type=chunk) - Additional risks encompass brand image dependence, competition, third-party reliance, supply chain constraints, store optimization, employee retention, data security, legal compliance, payment risks, litigation, and geopolitical events[22](index=22&type=chunk) - The company undertakes no obligation to publicly update or revise forward-looking statements, except as legally required[23](index=23&type=chunk) Additional Information [Call Details](index=2&type=section&id=8.1%20Call%20Details) Conference call details for Q2 FY2025 results, including date, time, dial-in, webcast link, and replay information - A conference call for fiscal 2025 second quarter results is scheduled for **September 4, 2025, at 4:30 p.m. ET**[9](index=9&type=chunk) - Participants can dial **(877) 407-9208** or **(201) 493-6784** (international callers)[9](index=9&type=chunk) - The conference call will be webcast live at https://investors.torrid.com, with replay available until **September 11, 2025**[9](index=9&type=chunk) [Investor Relations & Media Contacts](index=5&type=section&id=8.2%20Investor%20Relations%20%26%20Media%20Contacts) Contact information for investor relations and media inquiries, and channels for disseminating material information - Investor relations contacts: Tom Filandro and Lyn Walther (**IR@torrid.com**)[25](index=25&type=chunk) - Media contacts: Michael Freitag, Arielle Rothstein, and Lyle Weston of Joele Frank, Wilkinson Brimmer Katcher (**Media@torrid.com**)[25](index=25&type=chunk) - Material information is disseminated via the investor relations website (https://investors.torrid.com), SEC filings, press releases, public conference calls, webcasts, and social media[24](index=24&type=chunk)

Core Viewpoint - Torrid Holdings (CURV) has experienced a significant downtrend with a 14.8% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround as analysts expect better earnings than previously predicted [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - CURV's current RSI reading is 28.43, suggesting that the heavy selling pressure may be exhausting, indicating a possible bounce back towards equilibrium [5]. - Stocks oscillate between overbought and oversold conditions, and the RSI helps identify potential reversal points, making it a useful tool for investors seeking entry opportunities [3]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts regarding CURV, with a 5.9% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7]. - CURV holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a potential turnaround [8].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings and revenues for Torrid Holdings in the upcoming earnings report, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Torrid Holdings is expected to report quarterly earnings of $0.04 per share, reflecting a 50% decrease year-over-year, with revenues projected at $259.59 million, down 8.8% from the previous year [3]. - The consensus EPS estimate has been revised 20% higher in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP for Torrid Holdings is +71.43%, suggesting a strong likelihood of beating the consensus EPS estimate, supported by a Zacks Rank of 2 (Buy) [12]. - Historical performance shows that Torrid Holdings has beaten consensus EPS estimates three out of the last four quarters, with a recent surprise of +20% [13][14]. Industry Context - In the broader retail apparel and shoes industry, American Eagle Outfitters is also expected to report a decline in earnings, with a consensus EPS estimate of $0.20 per share, down 48.7% year-over-year, and revenues expected at $1.23 billion, down 4.5% [18][19].

Core Viewpoint - Torrid Holdings (CURV) has experienced a significant decline of 21.5% over the past four weeks, but it is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously expected [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, with readings below 30 indicating oversold conditions [2]. - CURV's current RSI reading is 27.85, suggesting that the heavy selling pressure may be exhausting, indicating a potential bounce back towards equilibrium [5]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts that earnings estimates for CURV have increased by 5.9% over the last 30 days, which typically correlates with price appreciation [7]. - CURV holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

Core Viewpoint - Torrid Holdings (CURV) has experienced a significant decline of 23.3% over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround as analysts expect better earnings than previously predicted [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - CURV's current RSI reading is 25.59, indicating that the heavy selling pressure may be exhausting itself, which could lead to a reversal in the stock's trend [5]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts regarding CURV, with a 5.9% increase in the consensus EPS estimate over the last 30 days, suggesting potential price appreciation in the near term [7]. - CURV holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a potential turnaround [8].