Torrid Q2 Earnings Call Highlights

Torrid NYSE: CURV reported second-quarter fiscal 2026 net sales of $231.7 million and adjusted EBITDA of $23.3 million, including an $11.1 million tariff refund benefit recognized in cost of goods sold. Excluding that benefit, adjusted EBITDA was $12.1 million, within the company’s guidance range. Comparable sales declined 6.3% in the quarter, while net sales fell from $262.8 million a year earlier. However, management said sales trends improved materially as the quarter progressed, with comparable sales returning to positive territory in July and momentum continuing into August.

“June was genuinely a difficult month for us,” Chief Executive Officer Lisa Harper said, citing elevated gas prices and seasonal pressures on discretionary spending. Harper said July represented a “significant pivot,” driven by improved customer reactivation, acquisition across marketing channels and the relaunch of the company’s Casting Call community events.

Marketing channels and customer-file strategy Torrid said its principal fiscal 2026 objective is to expand its customer file through customer acquisition, reactivation and retention. Chief Commercial Officer Ashlee Wheeler said all 11 marketing channels improved sequentially in July, contributing to positive comparable sales for the month. According to Wheeler, the company saw year-over-year digital customer growth in both July and August. Paid-media revenue rose by double digits in the second quarter despite lower spending than the prior year, resulting in improved return on ad spend. Paid revenue represented 12% of digital revenue, compared with 9% a year earlier.

For the second half, Torrid plans to increase digital marketing spending by roughly $1 million versus its original plan, though spending will remain 16% below the prior year. The company intends to direct the investment toward reactivation and customer prospecting, including paid social media, product listing ads and non-branded search. The company also plans to launch a dedicated Festi media campaign on Sept. 25. Wheeler said Festi, Torrid’s largest sub-brand, is expected to be the most beneficial sub-brand for new customer acquisition and reactivation.

Torrid said organic-search revenue has been positive year over year since June after the company implemented initiatives spanning product content, category authority, technical infrastructure and AI visibility. Its mobile app was another source of digital improvement, with app revenue reaching nearly 40% of digital revenue in July. The app grew at a double-digit rate year over year and converts at approximately seven times the rate of the company’s desktop and mobile web experiences, Wheeler said.

Assortment, sub-brands and marketplace expansion Management cited strength in knits, shorts, dresses, activewear and graphic tees. Harper said the company’s Super Soft fabric initiative in knit dressing has received a positive customer response, while footwear—which was a first-half sales headwi...