Quick Facts
- Torrid’s Q4 2025 sales fell 14.3% to $236.2 million from $275.6 million a year prior
- The company closed 151 stores in 2025 as part of plan to shutter up to 180 underperforming locations
- Sub-brands exceeded $70 million in revenue and are projected to grow 60% to $110 million in 2026
Torrid Holdings reported a 14.3% decline in fourth-quarter sales to $236.2 million as the plus-size retailer executed a massive store closure strategy. The company shuttered 151 stores in 2025, representing 85% of its planned closures.
Comparable sales dropped 10% in Q4, with a 460-basis-point negative impact from pausing the footwear category. The retailer posted a net loss of $8.1 million, or $0.08 per share, compared to a $3.0 million loss the prior year.
CEO Lisa Harper said the store closures are part of a transformation to a digital-first business model. “Digital continues to be our customer’s preferred channel, now approaching 70% of total demand,” Harper said during an earnings call.
The company plans to close up to 30 additional stores by mid-2026, completing the optimization program. This represents nearly 30% of Torrid’s brick-and-mortar footprint, leaving it with 632 stores after Q1 closures.
Sub-Brand Strategy Drives Growth
Torrid’s five sub-brands generated more than $70 million in fiscal 2025 revenue and are projected to reach approximately $110 million in 2026. The sub-brands include Festi, Nightfall, Retro, Belle Isle, and upcoming launches Lovesick and Studio Luxe.
“Our sub-brand strategy is delivering positive results, exceeding expectations and helping us reach new and younger customers while driving higher margin sales,” Harper said. The company expects sub-brands to represent nearly one-third of its business by 2026.
Festi emerged as the top-performing sub-brand with the largest expansion opportunity, according to Harper.
Financial Position and Outlook
Torrid ended Q4 with $200 million in cash and cash equivalents. The company realized $18.5 million in operating expense savings in 2025 and anticipates an additional $40 million in fiscal 2026.
Management provided fiscal 2026 guidance of $940 million to $960 million in sales and adjusted EBITDA of $65 million to $75 million. Full-year 2025 sales reached $1.0 billion with adjusted EBITDA of $63.6 million.
The retailer faces a $20 million impact from tariffs, which management plans to offset through expense reductions. More than 95% of active customers participate in the loyalty program, supporting retention efforts during store closures.
William Blair analysts called the broader store closure strategy “a positive step in freeing up capital to invest in new product and marketing.” The plus-size women’s clothing market is valued at $23.6 billion and projected to reach $37.4 billion by 2033.
