The Top 5 Analyst Questions From Torrid’s Q2 Earnings Call

September 11, 2025 at 01:31 AM EDT

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Torrid’s second quarter was marked by a negative market reaction, as investors responded to ongoing sales declines and a cautious assessment of near-term demand. Management pointed to continued softness in store traffic and increased promotional activity, attributing performance to the impact of store closures and weaker sales in certain apparel categories. CEO Lisa Harper acknowledged, “We continue to see customer sensitivity and value orientation given the current environment,” while noting that bottoms and dresses outperformed, offset by underperformance in tops. Management’s tone was pragmatic, focusing on operational execution amid a challenging retail backdrop.

Is now the time to buy CURV? Find out in our full research report (it’s free).

Torrid (CURV) Q2 CY2025 Highlights:

Revenue: $262.8 million vs analyst estimates of $260.5 million (7.7% year-on-year decline, 0.9% beat)
Adjusted EPS: $0.02 vs analyst estimates of $0.03 (in line)
Adjusted EBITDA: $21.53 million vs analyst estimates of $23.13 million (8.2% margin, 6.9% miss)
The company dropped its revenue guidance for the full year to $1.02 billion at the midpoint from $1.04 billion, a 1.9% decrease
EBITDA guidance for the full year is $85 million at the midpoint, below analyst estimates of $96.95 million
Operating Margin: 3.9%, down from 7.2% in the same quarter last year
Locations: 575 at quarter end, down from 657 in the same quarter last year
Same-Store Sales fell 6.9% year on year (-0.8% in the same quarter last year)
Market Capitalization: $179.4 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Torrid’s Q2 Earnings Call

Corey Tarlowe (Jefferies) asked about customer health and sub-brand performance. CEO Lisa Harper emphasized strong engagement from top-tier customers and highlighted the positive “halo effect” of sub-brands on core categories like denim and intimates.
Tarlowe (Jefferies) followed up on the EBITDA outlook, asking about the impact of increased marketing and promotional activity. Harper and Chief Strategy Officer Ashlee Wheeler explained that tariffs and promotions drove the outlook revision, and that additional marketing is focused on long-term customer growth.
Savannah Sommer (Goldman Sachs) inquired about the long-term potential for sub-brand mix and margin expansion. Harper detailed ongoing tests of pop-up and stand-alone formats, and the higher margin profile of sub-brands versus core product lines.
Ethan Saghi (BTIG) questioned sales performance exiting Q2 and into August. Wheeler noted continued value-orientation among customers and stable promotional activity, with no significant rebound in store traffic.
Saghi (BTIG) asked whether customers were pushing back on recent price increases. Harper said price complaints are common but that recent increases linked to tariffs were limited and targeted, with plans to expand value-oriented offerings next year.

Catalysts in Upcoming Quarters

In the quarters ahead, our analyst team will monitor (1) the pace at which sub-brands gain share within Torrid’s assortment and drive margin improvement, (2) execution of the store closure plan and its impact on digital customer retention, and (3) the effectiveness of increased digital marketing in attracting and retaining customers. Progress on expanding value product lines and managing tariff impacts will also be critical to watch.

Torrid currently trades at $1.80, down from $2.39 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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The Top 5 Analyst Questions From Torrid’s Q2 Earnings Call

Torrid (CURV) Q2 CY2025 Highlights:

Our Top 5 Analyst Questions From Torrid’s Q2 Earnings Call

Catalysts in Upcoming Quarters

The Best Stocks for High-Quality Investors

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