Torrid's Q1 net sales fall, digital strategy prioritised

Torrid Holdings, a direct-to-consumer apparel brand for plus-size women, reported a 4.9 percent decline in net sales to 266 million dollars with comparable sales down by 3.5 percent for the first quarter ended May 3, 2025. Adjusted EBITDA for the quarter reached 27.1 million dollars compared to 38.2 million dollars in the same period last year.

CEO Lisa Harper stated that the results were "in line with expectations" and reflected a continued focus on disciplined execution and profitability. “Our sub-brand strategy is delivering positive results, exceeding expectations and helping us reach new and younger customers while driving higher margin sales. With the upcoming launches of Lovesick and Studio Luxe, we’re doubling down on this momentum and expect sub-brands to represent nearly a third of our business by 2026.”

Emphasising a shift towards a more digitally-led business, Harper also revealed plans to close up to 180 underperforming stores this year. This move aims to reduce fixed costs and allow for reinvestment in customer acquisition and omni-channel enhancements, leveraging the strong engagement of 95 percent of its loyalty program customers.

Gross profit margin was 38.1 percent, down from 41.3 percent last year, primarily due to lower net sales and strategic promotional activities. Net income for the quarter was 5.9 million dollars or 6 cents per share, a decrease from 12.2 million dollars, or 12 cents per share, in the same period last year. Torrid closed two stores during the quarter, bringing the total store count to 632.

Looking ahead, Torrid provided an outlook for the second quarter of fiscal 2025, expecting net sales between 250 million dollars and 265 million dollars, and adjusted EBITDA between 18 million dollars and 24 million dollars. For the full fiscal year 2025, the company projects net sales between 1.030 billion dollars and 1.055 billion dollars, and adjusted EBITDA between 95 million dollars and 105 million dollars. The planned closure of up to 180 stores is expected to better align with current demand and sales channels.