Note 8. Revenue Recognition

Our revenue, disaggregated by product category, consists of the following (in thousands):


	Fiscal Year Ended
	January 31, 2026		February 1, 2025		February 3, 2024
Apparel	$	913,496	$	989,239	$	1,024,501
Non-apparel	52,870		82,526		93,462
Other	33,726		31,972		33,982
Total net sales	$	1,000,092	$	1,103,737	$	1,151,945

Amounts within Apparel include revenues earned from the sale of tops, bottoms, dresses, intimates, sleep wear, swim wear and outerwear. Amounts within Non-apparel include revenues earned from the sale of accessories, footwear and beauty. Amounts within Other primarily represent PLCC Funds. During fiscal years 2025, 2024 and 2023, e-Commerce penetration of total net sales was 64%, 61% and 59%, respectively.

We recognize a contract liability when we receive consideration from a customer before our performance obligations under the terms of a contract or an implied arrangement with the customer are satisfied. The opening and closing balances of our contract liabilities are as follows (in thousands):


	January 31, 2026		February 1, 2025
Accrued loyalty program(1)	$	9,425	$	10,887
Gift cards(1)	$	13,695	$	13,676
Deferred revenue(2)	$	2,683	$	2,777
Deferred PLCC Funds(3)	$	2,958	$	3,458

(1)Amounts are included within accrued and other current liabilities in the consolidated balance sheets.

(2)Amount as of January 31, 2026 consists of $2.5 million within accrued and other current liabilities and $0.2 million within other noncurrent liabilities in the consolidated balance sheet. Amount as of February 1, 2025 is included within accrued and other current liabilities in the consolidated balance sheet.

(3)Amount as of January 31, 2026 consists of $0.5 million within accrued and other current liabilities and $2.5 million within other noncurrent liabilities in the consolidated balance sheet. Amount as of February 1, 2025 consists of $0.5 million within accrued and other current liabilities and $3.0 million within other noncurrent liabilities in the consolidated balance sheet.

During fiscal year 2025, we recognized revenue of approximately $9.4 million, $5.2 million, $0.5 million and $2.8 million related to our accrued loyalty program, gift cards, deferred PLCC Funds and deferred revenue, respectively, that existed at the beginning of fiscal year 2025. During fiscal year 2024, we recognized revenue of approximately $10.7 million, $5.7 million, $0.5 million and $1.9 million related to our accrued loyalty program, gift cards, deferred PLCC Funds and deferred revenue, respectively, that existed at the beginning of fiscal year 2024. During fiscal years 2025, 2024 and 2023 we recorded $1.5 million, $1.6 million and $0.9 million, respectively, as a benefit to net sales to reflect the estimated value of future award redemptions under our loyalty program.

Historical Timeline

Fiscal Year	Filed
2026	Mar 31, 2026	Showing above
2025	Apr 1, 2025

2024	Apr 2, 2024

2023	Mar 28, 2023

2022	Mar 30, 2022

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Torrid Holdings Inc. Revenue Disclosure

Historical Timeline

About Revenue Disclosures

Other Available Disclosures