Plus‑size retailer targets underperforming locations as it doubles down on e‑commerce.
Torrid Holdings Inc. will close 180 “underperforming” stores across the United States after a rocky first quarter that saw net sales dip 4.9 percent and losses reach $7.3 million.
The move, confirmed in the June 5 earnings report, aims to curb fixed costs and redirect cash toward online growth.
What falling first‑quarter sales figures reveal about Torrid’s changing market
The retailer’s net sales slid from $279 million in Q1 2024 to $266 million this year, while gross margin narrowed to 38.1 percent. Ouch. Yet CEO Lisa Harper insists the brand remains “financially solid” and forecasts 2025 revenue between $1.03 billion and $1.055 billion. How? By trimming real‑estate expenses and meeting customers where they already shop—online, where roughly 70 percent of transactions now occur.
| Key metric | Q1 2024 | Q1 2025 |
|---|---|---|
| Net sales | $279 M | $266 M |
| Gross margin | 41.3 % | 38.1 % |
| Net income | $0.4 M | –$7.3 M |
Numbers tell the story: brick‑and‑mortar traffic is cooling while e‑commerce heats up. Therefore, Torrid’s plan to “optimize the retail footprint” looks less like retreat and more like realignment.
How Torrid’s online push and store closures could reshape plus‑size retail
Consumers have grown comfortable ordering extended sizes from their couches—free returns and detailed fit guides help. Torrid will reinvest store savings into faster shipping, customer‑acquisition campaigns, and app upgrades. Could that set a template for other specialty retailers? Quite possibly. After all, competitors such as Lane Bryant and Eloquii are also leaning harder on digital storefronts.
Here’s what shoppers can expect next:
- Fewer mall visits: Closures target slow‑traffic locations first.
- Better online perks: Expect site‑wide fit videos and loyalty‑point boosts.
- Pop‑ups over full stores: Torrid hints at seasonal “fit lounges” instead of permanent leases.
Which celebrities and brand ambassadors may influence Torrid’s next strategic chapter
Star power still matters. The label has previously teamed with Rebel Wilson, Ashley Graham, and Gabourey Sidibe to spotlight inclusive fashion. Industry watchers speculate that new digital‑first collaborations—think livestream styling sessions—could keep Torrid top‑of‑mind while physical doors shut. Will fresh faces emerge to lead the conversation on body positivity? Stay tuned.
Affected workers will receive transfer offers or severance details in the coming weeks. Shoppers holding physical gift cards can keep using them online without penalty. If your local store appears on the closure list, check closing‑day markdowns—they can be steep.
Consequently, Torrid’s gamble boils down to this: sacrifice square footage today to win digital share tomorrow. Whether that bet pays off will become clearer as 2025 targets draw near.
