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Torrid closing up to 180 stores; net sales drop in Q1

Torrid
Torrid is eyeing store closures.

Torrid Holdings Inc. met expectations for its first quarter of fiscal 2025 as it accelerates a pivot to a more digital focus.

The retailer, which specializes in apparel and intimates for women sizes 10 to 30, plans to shutter as many as 180 underperforming stores by the end of 2025 as it seeks to reduce fixed costs and continue a digital transformation strategy.

"Digital continues to be our customer’s preferred channel, now approaching 70% of total demand," said Torrid CEO Lisa Harper. "We’re accelerating our transformation to a more digitally-led business, which includes optimizing our retail footprint. We now plan to close up to 180 underperforming stores this year—allowing us to d reinvest in areas that drive long-term growth, including customer acquisition and omnichannel enhancements." 

Harper also cited Torrid’s "deep connection" with its existing customers, of which she said 95% are engaged in its loyalty program.

“Combined with strategic and targeted acquisition and retention efforts, this digital transformation will position us for efficient and accelerated top and bottom-line growth,” said Harper.

Torrid previously said it was targeting 40 to 50 store closures in 2025, although the retailer said that number could ncrease as it continues to evaluate store performance alignment with channel demand.

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First quarter highlights

  • Net sales decreased 4.9% to $266 million compared to $279.8 million for the first quarter of 2024, in line with expectations.
  • Comparable sales decreased 3.5% in the first quarter.Net income declined 49% to $5.9 million, or $0.06 per share, compared to a net income of $12.2 million, or $0.12 per share, in the first quarter of the prior year.
  • In the first quarter, the company closed two Torrid stores. The total store count at quarter’s end was 632 stores.

Guidance 

For the second quarter of fiscal 2025, Torrid expects net sales between $250 million and $265 million. For the full year fiscal 2025 the company expects net sales between $1.03 billion and $1.05 billion.

During the full fiscal year, Torrid also expects a net tariff impact of $20 million, based on current rates; to be fully offset by discretionary cost reductions, store optimization and project prioritization.

[READ MORE: Survey: Consumers to shift loyalty to brands that absorb tariff costs]

"Our sub-brand strategy is delivering positive results, exceeding expectations and helping us reach new and younger customers while driving higher margin sales," said Harper. "With the upcoming launches of Lovesick and Studio Luxe, we’re doubling down on this momentum and expect sub-brands to represent nearly a third of our business by 2026."

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