Women’s plus-size apparel retailer Torrid Holdings (NYSE:CURV) reported Q4 CY2025 results topping the market’s revenue expectations , but sales fell by 14.3% year on year to $236.2 million. Guidance for next quarter’s revenue was better than expected at $240 million at the midpoint, 0.9% above analysts’ estimates. Its GAAP loss of $0.08 per share was 36% above analysts’ consensus estimates.

Is now the time to buy Torrid? Find out in our full research report.

Revenue: $236.2 million vs analyst estimates of $231.1 million (14.3% year-on-year decline, 2.2% beat)

EPS (GAAP): -$0.08 vs analyst estimates of -$0.13 (36% beat)

Adjusted EBITDA: $5.15 million vs analyst estimates of $2.30 million (2.2% margin, significant beat)

Revenue Guidance for Q1 CY2026 is $240 million at the midpoint, above analyst estimates of $237.7 million

EBITDA guidance for the upcoming financial year 2026 is $70 million at the midpoint, above analyst estimates of $69.08 million

Operating Margin: -2.1%, down from 1.3% in the same quarter last year

Free Cash Flow was -$9.32 million, down from $10.25 million in the same quarter last year

Locations: 483 at quarter end, down from 634 in the same quarter last year

Same-Store Sales fell 10% year on year (-0.8% in the same quarter last year)

Market Capitalization: $126 million

Promoting a message of body positivity and inclusiveness, Torrid Holdings (NYSE:CURV) is a plus-size women’s apparel and accessories retailer.

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $1 billion in revenue over the past 12 months, Torrid is a small retailer, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with suppliers.

As you can see below, Torrid struggled to generate demand over the last three years. Its sales dropped by 8.1% annually as it closed stores and observed lower sales at existing, established locations.

This quarter, Torrid’s revenue fell by 14.3% year on year to $236.2 million but beat Wall Street’s estimates by 2.2%. Company management is currently guiding for a 9.8% year-on-year decline in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to decline by 5.6% over the next 12 months. it’s hard to get excited about a company that is struggling with demand.

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Torrid operated 483 locations in the latest quarter. Over the last two years, the company has generally closed its stores, averaging 6.3% annual declines.

When a retailer shutters stores, it usually means that brick-and-mortar demand is less than supply, and it is responding by closing underperforming locations to improve profitability.

The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales is an industry measure of whether revenue is growing at those existing stores and is driven by customer visits (often called traffic) and the average spending per customer (ticket).

Torrid’s demand has been shrinking over the last two years as its same-store sales have averaged 5.7% annual declines. This performance isn’t ideal, and Torrid is attempting to boost same-store sales by closing stores (fewer locations sometimes lead to higher same-store sales).

In the latest quarter, Torrid’s same-store sales fell by 10% year on year. This decrease represents a further deceleration from its historical levels. We hope the business can get back on track.

It was good to see Torrid beat analysts’ EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. On the other hand, its gross margin missed and its EBITDA guidance for next quarter fell short of Wall Street’s estimates. Overall, this print was mixed but still had some key positives. The stock traded up 23.3% to $1.55 immediately after reporting.

Torrid may have had a good quarter, but does that mean you should invest right now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.