Torrid sales fall 7.6% as 169 stores close; tariffs and promotions squeeze margins to 35.3%

Filed June 10, 2026 · Period ending May 2, 2026 · Compared to 10-Q Jun 8, 2025 · ~1 min read

Key Changes

• high

  Q1 sales dropped 7.6% to $245.8M as the company closed 169 stores (26.7% of footprint) under a new optimization strategy shifting customers online. Net income fell 93% to $0.4M; Adjusted EBITDA down 35% to $17.6M.

  MD&A: Results of Operations verify on EDGAR →
• high

  Gross margin compressed 2.8 percentage points to 35.3%, driven by new IEEPA tariffs and increased promotions. Company filed for $11.4M in tariff refunds following Supreme Court ruling striking down certain duties.

  MD&A: Tariff Environment verify on EDGAR →
• high

  Company drew $32.8M on its ABL credit line (previously undrawn), reducing available liquidity from $117.3M to $77.2M. Total debt rose to $301.2M as store closures and lower sales tighten working capital.

  MD&A: Liquidity verify on EDGAR →