Torrid Holdings Inc.

Greetings and welcome to the Torrid Holdings, Inc. first quarter fiscal 2026 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chinwe Abelu. Thank you. You may begin.

Good afternoon, everyone. And thank you for joining Torrid's call today to discuss our financial results for the first quarter of fiscal 2026, which we released this afternoon and can be found on our website at investors.torrid.com. With me on the call today are Lisa Harper, Chief Executive Officer of Torrid, Ashley Wheeler, our Chief Commercial Officer, and Paula Dempsey, the Chief Financial Officer. Before we get started, I would like to remind you of the company's safe harbor language, which I'm sure you're familiar with. Management may make forward-looking statements, including guidance and underlying assumptions. Forward-looking statements may include, but are not limited to, statements containing the word expect, believe, plan, anticipate, will, may, should, estimate, and other words and terms of similar meaning. All forward-looking statements are based on current expectations and assumptions as of today, June 4, 2026. These statements are subject to risks and uncertainties that could cause actual results to differ materially. For further discussion of risks related to our business, see our filings with the SEC. With that, I'll turn it over to Lisa.

Thank you, Chin-Wei. Good afternoon, everyone, and thank you for joining us today as we discuss Torrid's financial results for the first quarter of fiscal 2026. With me on today's call are Paula Dempsey, our Chief Financial Officer, and Ashley Wheeler, who was recently appointed Chief Commercial Officer. Prior to this appointment, Ashley served as our Chief Planning and Strategy Officer. She joined the company in 2011 and has spent the better part of 15 years building expertise across many dimensions of the business. In her expanded role, Ashley now unifies performance marketing, e-commerce, pricing and promotional strategies, and commercial analytics under a single leadership mandate, connecting the functions most critical to our growth agenda. She also continues to oversee merchandise planning and allocations. Congratulations, Ashley. On today's call, I will open with a review of our first quarter performance and speak to the continued progress we're making against the strategic transformation initiatives we outlined in 2025, channel optimization and assortment and pricing architecture. With these platforms established, I'll turn to our primary focus for 2026, customer file growth through acquisition, reactivation, and retention. Ashley will then share a detailed update on our marketing initiatives And Paula will close with the financials and our outlook for the remainder of the year. For the first quarter, we reported net sales of $245.8 million, slightly above our guidance, and adjusted EBITDA of $17.6 million at the high end of our guidance range. These results reflect disciplined execution across our strategic initiatives, and importantly, signal progress in positioning us for comparable sales growth in the back half of the year and beyond. Total company comparable sales declined 1.7% in Q1. Excluding footwear, Q1 comparable sales would have been plus 1.2%. As we communicated on the Q4 call, our fundamentally restructured footwear sourcing strategy and assortment mix is creating the first half comp headwind that we expect to resolve and turn positive in the second half of the year. Early reads on the reintroduced footwear assortments are encouraging. From a category standpoint, knit tops, bottoms, and true, our activewear concept, were standouts in the first quarter. These categories delivered year-over-year volume growth despite operating fewer stores. This success reflects the broader product work we've done to sharpen our assortment and better serve our customer. Shifting to our portfolio of sub-brands, They're off to a good start in the new fiscal year, with the first quarter growth of 75% over last year. We continue to plan sub-brand growth at approximately 60% for the full year, reaching roughly $110 million, up from $70 million in 2025, and expanding from approximately 7% of total net sales to 12%. We entered 2026 with our sub-brand platform established and built to scale. Q1 is validation that our data-informed approach to chasing winners and refining our assortment mix is working. We are pleased with the performance of our opening price point strategy, which has proven to be both a conversion driver and a basket-building lever. Scaled in Q1, OPP delivers a clear, consistent, everyday value message across all channels, one that has resonated well with value-oriented customers. As a reminder, we are balancing our customer demand for accessible price points with two non-negotiables, margin discipline and product quality. Maintaining our quality standards while delivering accessible value remains imperative. The program represented approximately 30% of apparel sales in the quarter at healthy product margins supported by cost-engineered sourcing model. Opening price points are strategically present across all major apparel categories, and contributed directly to the outside performance in dresses, knit tops, and non-denim bottoms. Turning to our store optimization initiative, in Q1, we substantially completed our store optimization program with an additional 20 closures of structurally unproductive locations, bringing the total to 171 closures since we initiated the program. That work is now largely behind us. We have strategically right-sized our store fleet to one that is more productive, aligned, and better positioned to serve our customer where and how she prefers to shop with us. Customer retention through this transition has remained strong with our marketing efforts successfully redirecting traffic both online and to nearby stores. Equally important, the cost savings generated by the closure program are being reinvested directly and strategically. and to the initiatives designed to reignite growth in our customer file. Every strategic decision we have made over the past 18 months has served a single objective, positioning Torrid to grow. In 2026, that objective has a specific and measurable form, strengthening our customer file through targeted retention, reactivation, and acquisition strategy. The foundation is set, the investments are aligned, and the work is underway. We've built a strong foundation for 2026, and our strategy is well aligned with today's consumer mindset. Our customer is shopping with intention, making deliberate choices about where she invests her dollars. The good news is she continues to choose Torres with engagement and loyalty from our core customers remaining strong. We've designed our business model specifically for this environment. Our opening price point strategy delivers the accessible values she's looking for. Our assortment architecture gives her choices at every price level, and our target marketing reaches her with the right message at the right time. In short, we're positioned where we expect it to be. Now let me pass it to Ashley for an update on the comprehensive work she is leading.