Torrid Shares Surge on Tariff Windfall and Bullish Outlook

The company reported a profit of $5.18 million for the period ending Aug. 1, a sharp increase from the $1.57 million recorded a year prior. While net sales slipped 12% to $231.7 million—falling short of the $237.2 million consensus—the bottom-line performance of 5 cents a share easily eclipsed the projected 3-cent loss. Chief Executive Lisa Harper pointed to a meaningful improvement in sales trends throughout the quarter, specifically citing July as a turning point for the brand’s customer growth strategy.

Looking ahead, Torrid raised its full-year adjusted Ebitda guidance to a range of $76 million to $86 million, up from its previous estimate of $65 million to $75 million. Harper credited the upward revision to the receipt of a tariff refund, which bolstered the firm's financial position. For the current quarter, the company anticipates net sales between $230 million and $235 million, signaling confidence that recent merchandising course corrections are beginning to gain traction with consumers.