Torrid tops estimates, closing 40 to 50 stores; focusing on enhancing product
Torrid Holdings Inc. reported better-than-expected holiday quarter earnings and revenue as its continues its store “optimization” strategy.
The retailer, which specializes in apparel and intimates for women sizes 10 to 30, is targeting 40 to 50 store closures in 2025, with the potential for the number to increase as it continues to evaluate store performance alignment with channel demand, “which would further reduce our fixed cost base and free up capital to fund growth investment,” CEO Lisa Harper said on Torrid’s earnings call.
“Our ongoing store optimization strategy includes balancing our fleet, enhancing store economics, refreshing store environments, and aligning our sales channels more closely with customer demand — allowing us to further accelerate customer growth,” Harper stated in the earnings release.
As part of its 2025 strategic priorities, and in addition to store optimization, Torrid focusing on enhancing its product assortment and expanding its customer base through new sub-brand launches, Harper told analysts.
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“This strategic shift will enable us to expand our customer base while increasing our share of wallet with existing customers,” she said. “Our new sub brand concepts, which command higher margins, began rolling out in late December of 2024 and the initial response has been positive.”
Calling 2025 the “year of the product” at Torrid, Harper said the company introduced more new items in the first half of the year than it introduced in the past six years.
“Our focus for 2025 is broadening our assortments to cater to a wider range of fashion, aesthetics and provide more unique differentiated choices,” she said.
Fourth quarter
The company reported a net loss of $3.0 million, or a loss of $0.03 per share, for the quarter ended Feb. 1, compared to a net loss of $4.1 million, or a loss of $0.04 per share, in the year-ago quarter. Analysts had expected a loss per share of $0.07.
Net sales fell 6.1% to $275.6 million, topping estimates o $264.6 million. (Last year included an additional $21.7 million in sales for the 53rd week.) Comparable sales were down 0.8%.
“As we enter 2025, our strategic priorities are clear: enhancing our product assortment, driving customer growth, and executing our store optimization plan,” Harper stated.
The total store count at the end of the quarter was 634 stores.
