Torrid to close 30 stores as optimization program enters final phase
Torrid Holdings Inc. is ready to begin its next chapter.
The retailer, which specializes in apparel and intimates for young women sizes 10 to 30, is on track to close 30 stores by the end of the first half of 2026. In June 2025, Torrid revealed plans to close up to 180 underperforming locations part of a store optimization program. It completed 85% of the closures, or 151 stores, last year.
“We expect to close up to an additional 30 stores by the end of the first half of fiscal 2026, at which point the program will be substantially complete,” Torrid CFO Paula Dempsey said on the companys fourth quarter earnings call. “Customer retention rates from closed locations have performed consistently with historical levels, validating both the network strategy and the underlying brand health. Our customers are finding us where we remain open and online.”
Dempsey told analysts that Torrid minimized exit costs by structuring closures around natural lease expirations wherever possible, significantly reducing the cash cost of the program and preserving liquidity.
“Most importantly, the financial impact is substantial and compounding,” she said.
Fourth Quarter
The company reported a net loss of $8.1 million, or ($0.08) per share, for the quarter ended Jan. 31, compared to a net loss of $3.0 million, or ($0.03) per share in the year-ago period. Net sales fell 14.3% to $236.2 million. Comparable sales decreased 10%.
Adjusted EBITDA was $5.1 million, or 2.2%, of net sales, compared to $16.7 million, or 6.1% of net sales, in the fourth quarter of last year.
For the full year, net sales decreased 9.4% to $1.0 billion. Comparable sales were down 7% compared to last year. The company reported a net loss of $7.0 million, or ($0.07) per share, compared to net income of $16.3 million, or $0.16 per share last year.
In the earnings statement, Torrid CEO Lisa Harper called 2025 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,” she said. “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.”
Harper struck an upbeat note regarding the company’s future outlook, noting that early first quarter trends give the company confidence “that the foundation we’ve built is beginning to take hold.”
“We enter 2026 with a strong operational foundation — optimized channels, product and pricing," she said. "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."
Torrid operated 483 stores at the end of its fourth quarter.
