Torrid outperformed earnings forecasts for its holiday quarter despite a decline in revenue.
The plus-size fashion retailer is moving forward with plans to refine its store footprint and invest in product innovation.
The company, which caters to women wearing US sizes 10 to 30, intends to shut down 40 to 50 locations in 2025, with the potential for additional closures based on ongoing performance evaluations.
CEO Lisa Harper stated that this approach will ‘further reduce our fixed cost base and free up capital to fund growth investment.’
“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,” she added in an earnings release.
As part of a broader strategic shift, Torrid is also working to enhance its product assortment and expand its customer base.
New sub-brand launches, which Harper said offer higher margins, began rolling out in late December and have received an encouraging response.
“This strategic shift will enable us to expand our customer base while increasing our share of wallet with existing customers,” she noted.
Harper described 2025 as the retailer’s ‘year of the product’ – emphasizing an accelerated introduction of new styles.
“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.
Torrid reported a net loss of $3 million, or $0.03 per share, for the quarter ending Feb 1, an improvement from the $4.1 million loss, or $0.04 per share, recorded a year earlier. Analysts had expected a steeper per-share loss of $0.07.
Revenue fell 6.1% to $275.6 million, exceeding the projected $264.6 million, while comparable sales declined 0.8%. At the end of the quarter, the retailer operated 634 stores.
“As we enter 2025, our strategic priorities are clear: enhancing our product assortment, driving customer growth, and executing our store optimization plan,” Harper said.
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