Plus-size fashion retailer Torrid is set to close as many as 180 stores this year, nearly 30% of its 632-store footprint, as it doubles down on its growing e-commerce business, executives confirmed Thursday.
The scale of the planned closures is far larger than previously expected. As recently as March, Torrid had forecast 40 to 50 closures.
But with 60% of its leases up for renewal in 2025 and online sales already comprising nearly 70% of revenue, CEO Lisa Harper said the company now expects stores to account for just a quarter of total sales moving forward.
Despite the shrinking physical footprint, Torrid still sees a role for its brick-and-mortar locations.
The company plans to refresh 135 stores in Q3, describing them as “important touchpoints” that offer community, brand-building, and service experiences.
The company’s broader restructuring also includes a pause on its footwear business, which is expected to cut up to $45 million from sales this year.
First-quarter net sales dropped nearly 5% to $266 million, with comparable sales down 3.5%. Net income halved to around $6 million.
Closures are expected to boost EBITDA margin by up to 250 basis points as Torrid reallocates spending towards marketing and customer retention.
Harper noted that about 60% of customers from shuttered stores remain with the brand, supporting the strategy.
Torrid is also reducing its reliance on China-sourced goods, from mid-teens exposure down to low-single digits—to limit tariff impact, which is expected to cost the business around $20 million this year.
CFO Paula Dempsey said those costs would be fully offset through expense cuts.
Click here to sign up to Retail Gazette‘s free daily email newsletter
