Introduction

Torrid, the women's plus-size apparel retailer, is restructuring its physical footprint by closing 177 underperforming stores across its roughly 620-location fleet. The move underscores a broader industry shift as retailers reevaluate brick-and-mortar investments in an era dominated by digital shopping.

What Happened

The closure plan was first outlined in Torrid's first-quarter 2025 earnings release, where CEO Lisa Harper announced the company would shutter up to 180 stores to streamline operations. Since then, the retailer has accelerated the process, completing an additional six closures in the second quarter, bringing the total to 177. Harper emphasized that the decisions are part of a deliberate effort to reduce fixed costs and redirect resources toward digital expansion.

Why This Matters

With digital sales now approaching 70% of total demand, Torrid's store optimization reflects a strategic pivot toward capitalizing on its strong online presence. The closures come amid robust growth in the plus-size fashion market, which Verified Market Reports projects will expand from $23.6 billion in 2024 to $37.4 billion by 2033, a compound annual growth rate of 6.5% from 2026 to 2033.

Key Takeaways

  • Torrid has closed 177 stores, representing roughly 20% of its total retail footprint, as part of a targeted footprint reduction strategy.
  • Comparable sales declined 6.3% year-over-year in the second quarter, yet gross profit margin improved to 38.7%, up from 35.6% in the same period last year.
  • Net income rose to $5.2 million, or $0.05 per share, compared to $1.6 million, or $0.02 per share, year-over-year, signaling improved profitability despite lower revenue.
  • The plus-size apparel market is projected to grow significantly, with e-commerce channels accounting for more than 60% of sales and outpacing traditional store-based outlets.
  • CEO Lisa Harper noted that customer retention has remained strong during the transition, with marketing efforts successfully redirecting traffic to existing stores and the brand's digital platforms.

Conclusion

Torrid's aggressive store closures highlight the evolving reality for specialty retailers: when the majority of sales migrate online, maintaining underperforming leases becomes a financial liability rather than an asset. By streamlining its physical presence, the company can reinvest in digital marketing, product development, and the expanding plus-size market, positioning itself for sustainable growth in a competitive omnichannel landscape.