American apparel and accessories brand Torrid Holdings Inc has reported a challenging fiscal 2025 (FY25) ended January 31, 2026, with sales declining 9.4 per cent to $1 billion, while comparable sales fell 7 per cent. Gross margin also contracted to 34.8 per cent from 37.5 per cent in the previous year.

The company posted a net loss of $7 million, compared to a net income of $16.3 million in FY24. Adjusted EBITDA fell to $63.6 million, or 6.4 per cent of sales, from $109.1 million, or 9.9 per cent a year earlier.

Torrid Holdings has reported a weak FY25, with sales falling 9.4 per cent to $1 billion and a net loss of $7 million amid margin pressure.
The company closed 151 stores and saw EBITDA decline.
Q4 performance also weakened.
Despite this, Torrid expects modest recovery in FY26, supported by optimisation efforts, improved marketing and a stronger operational foundation.

The company closed a total of 151 stores during the year as part of its retail optimisation strategy, reducing its footprint from 634 to 483 stores, Torrid Holdings said in a press release.

Torrid ended the year with $20 million in cash and cash equivalents, while total liquidity stood at $84.9 million. Net cash used in operations was $13 million, compared to positive operating cash flow of $77.4 million in the previous year.

For the fourth quarter (Q4), net sales dropped 14.3 per cent year-on-year (YoY) to $236.2 million, while comparable sales fell 10 per cent. Gross margin contracted to 30.0 per cent from 33.6 per cent a year earlier. The company reported a net loss of $8.1 million, widening from a $3.0 million loss in the same period last year. Adjusted EBITDA declined sharply to $5.1 million, or 2.2 per cent of sales, compared to $16.7 million, or 6.1 per cent, previously.

During the quarter, Torrid closed 77 stores under its Store Footprint Optimisation Project, taking the total store count to 483 locations.

Commenting on performance, Lisa Harper, chief executive officer at Torrid Holdings, said, “2025 was a transformational year. We delivered $1 billion in net sales, in line with our guidance, and $63.6 million in Adjusted EBITDA, exceeding the high end of our outlook, while making deliberate strategic decisions required to put this business on a stronger footing. We closed 151 structurally unproductive locations, launched five sub-brands that generated approximately $70 million in sales, and fundamentally restructured our product assortment around core franchises and fabrications our customers value most. Trends in Q4 and early Q1 give us confidence that the foundation we’ve built is beginning to take hold.”

Looking ahead, the company expects first-quarter fiscal 2026 net sales in the range of $236 million to $244 million, with Adjusted EBITDA between $14 million and $18 million. For the full year, Torrid forecasts net sales between $940 million and $960 million and Adjusted EBITDA of $65 million to $75 million, alongside capital expenditure of $8 million to $10 million.

“We enter 2026 with a strong operational foundation—optimised channels, product and pricing. This positions us to accelerate customer file growth through renewed marketing efforts, helping us re-engage past shoppers, attract new customers and deepen loyalty across our existing base. I am confident we are on the right path and encouraged by early signs of progress we are seeing in the business,” added Harper.

Fibre2Fashion News Desk (SG)

The People’s Bank of China (PBoC) is set to conduct a one-year medium-term lending facility (MLF) operation worth 500 billion yuan (~$72.52 billion) on Wednesday. The move is aimed at ensuring sufficient liquidity within the banking system.

The People’s Bank of China will conduct a 500-billion-yuan (~$72.52 billion) one-year MLF operation to support banking liquidity.
Conducted via variable-rate tenders, the move will offset 450 billion yuan in maturing funds, resulting in a net injection of 50 billion yuan (~$6.9 billion).
This marks the 13th consecutive month of net liquidity infusion by the central bank.

The operation will be carried out via variable-rate tenders with a fixed volume, using a multiple-price auction mechanism, said Chinese media reports quoting the central bank.

With 450-billion-yuan worth of MLF funds due to mature this month, the latest operation will result in a net liquidity injection of. This marks the 13^th consecutive month in which the PBoC has added net liquidity through the facility.

The operation will result in a net liquidity injection of 50 billion yuan (~$6.9 billion), after accounting for 450 billion yuan in MLF funds maturing this month, extending the PBoC’s streak of net injections to 13 consecutive months.

Fibre2Fashion News Desk (SG)

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