Torrid’s announcement to shutter up to 180 stores in 2025 struck like a flashing exit sign over its entire network, erasing nearly one-third of its physical locations and reshaping access to plus-size apparel for countless shoppers.
Digital sales now drive nearly 70% of demand, forcing the retailer to confront underperforming mall outlets amid declining foot traffic and rising online preferences.This shift, long in the making, has accelerated a painful contraction for the brand targeting sizes 10 to 30.
Digital Shift Reshapes Demand
Torrid’s first-quarter fiscal 2025 results revealed the pressure: digital channels neared 70% of total sales, squeezing profitability from brick-and-mortar sites dependent on steady mall visitors.Store count had already dipped from 658 at the end of the prior year’s comparable quarter to 632 by quarter’s end, reflecting ongoing shrinkage nationwide.
Net sales dropped 4.9% to $266.0 million from $279.8 million year-over-year, with gross profit margin contracting to 38.1% from 41.3%. These figures underscored how product choices, promotions, and a heavier online mix failed to offset fixed costs like rent and staffing for low-traffic locations.
Financial Strain Sparks Action
The third quarter brought steeper declines: net sales fell 10.8% to $235.2 million from $263.8 million, comparable sales dropped 8.3%, and gross margin slid to 34.9% from 36.1%.[1] The company recorded a $6.4 million net loss, with adjusted EBITDA at $9.8 million—a 4.2% margin, down from $19.6 million and 7.4% the year before.
CEO Lisa Harper attributed the shortfalls to internal “execution missteps,” including assortment imbalances, and outlined fixes like stricter merchandising, rebalanced product architecture, and a revived profitable footwear line.
Store Closures Take Shape
On June 5, 2025, Torrid detailed its plan: close up to 180 underperforming stores from its then-632 total, aiming to cut fixed costs and redirect funds to customer acquisition, loyalty programs, and omnichannel improvements. By the third quarter’s end, 74 closures had occurred, leaving 560 stores, with the full tally targeted by early February 2026.
Specific sites emerged quickly. The Meriden Mall location in Connecticut faces shutdown on January 4, 2026, alongside others in Peoria, Illinois; Cherry Hill, New Jersey; and Citrus Heights, California. Torrid has not disclosed total job impacts, but each closure affects associates, managers, and local support roles, turning corporate strategy into personal upheaval for workers.
Broader Industry Echoes
Torrid’s challenges mirror those across specialty apparel, where chains have culled stores as e-commerce dominates and mall viability wanes. Plus-size competitors have similarly trimmed footprints or pivoted online, narrowing in-person options even as digital markets expand with better sizing tools and selection.
External pressures mounted: S&P Global downgraded Torrid to CCC+ in mid-January 2026, citing weak performance and the closure strategy. CFO Paula Dempsey emphasized that a leaner store base, paired with productive remaining sites and robust digital uptake, could strengthen the business, assuming customers shift seamlessly online.
Analysts question the optimal physical presence when digital claims 70% of sales, though management defends stores for brand discovery and service in an omnichannel world. No merger talks have surfaced, leaving the focus on operational resets.
The path ahead tests whether these moves restore balance. Success could yield a nimble, digitally powered retailer retaining loyalty among plus-size customers. Failure risks further erosion, amplifying gaps in physical try-on experiences and underscoring retail’s channel reckoning. Malls lose anchors, communities feel the voids, and shoppers weigh convenience against the irreplaceable feel of in-person browsing—outcomes that will define Torrid’s endurance and signal wider industry pivots.
Sources:
“Torrid Holdings Inc. Reports Third Quarter Fiscal 2025 Results.” Torrid Press Release, 3 Dec 2025.
“Torrid Holdings to Close Up to 180 Stores as Part of Strategic Realignment.” Retail Dive, 5 June 2025.
“Torrid Store at Meriden Mall to Close Jan. 4 as Company Shutters Nearly 200 Locations Nationwide.” CT Insider, Dec 2025.
“S&P Global Downgrades Torrid Holdings Credit Rating to CCC+ on Weak Performance and Store Reduction Plan.” S&P Global Ratings, 15 Jan 2026.