Torrid closes 151 stores, swings to $7M loss as tariffs compress margins and sales fall 9%

Filed March 31, 2026 · Period ending January 31, 2026 · Compared to 10-K Apr 1, 2025 · ~2 min read

Key Changes

• high

  Net sales fell 9.4% to $1.0B in FY2025; gross margin compressed 2.7pp to 34.8% driven by tariff cost increases and fixed-cost deleverage on lower volume. Company swung from $16.3M net income to $7.0M loss.

  MD&A: Financial Results verify on EDGAR →
• high

  Closed 151 stores (24% of base) under new retail optimization strategy; plans up to 40 more closures in FY2026. Operating cash flow turned negative ($13M outflow vs. $77M inflow prior year).

  Business & MD&A: Store Strategy verify on EDGAR →
• high

  New tariffs on apparel imports increased cost of goods sold; Supreme Court struck down certain IEEPA tariffs in Feb 2026, but administration invoked new authority to impose broader duties. Company assessing recoverability of tariffs already paid.

  Business & MD&A: Tariff Risk verify on EDGAR →