A Beloved Women's Apparel Brand Is Closing 180 Stores And The Reason Couldn't Be Clearer

Torrid launched in 2011 as Hot Topic's plus-size fashion line, aiming to fill a gap in the market. It offers women's clothing in sizes 10 to 30, with stylish options for work, casual wear, and lingerie. Torrid aim has been to bring runway-inspired designs into denim, tops, and dresses that feel current. By 2017, it had grown to 487 stores nationwide partly because the brand built a reputation through empowering marketing and collaborations with influencers like Gabi Gregg. As of 2025, Torrid is known for its fashion-forward plus-size collections, especially among women aged 25 to 40. At the same time, the brand's figures haven't been doing well lately.

In a June 5 press release, Torrid said its first-quarter 2025 net sales fell 4.9% to $266 million, down from $279.8 million a year earlier. The company's gross profit margin also slipped, dropping to 38.1% from 41.3%, as heavier promotions and slower store traffic reduced earnings. Hours later, Torrid told investors it will close up to 180 under-performing stores — almost 30% of its locations — to cut fixed costs and free up resources for its e-commerce channel. Reducing its real-estate footprint and focusing on online shoppers, could stabilize the business amid changing customer habits. This is a similar strategy employed by iconic diner chain, Denny's, who closed dozens of locations in 2025.

Torrid CEO Lisa Harper said closing up to 180 under-performing stores is part of a shift to a digital-first strategy. She noted that about 70% of customer demand now comes from online sales, but the company hasn't yet explained what will happen to employees at those locations or whether they'll receive severance or other support. Harper emphasized, however, that Torrid remains financially healthy and is simply adapting to a fast-growing e-commerce market.

According to FIS's 2022 Global Payments Report, global online sales are projected to grow 55.3% between 2021 and 2025, reaching about $8.3 trillion. To keep up, many retailers like Torrid are reducing their number of physical stores and investing more in their online channels. Companies that failed to adjust, like Sears, could not avoid bankruptcy; the brand let its website, logistics, and store tech languish while Amazon and Walmart modernized. Blockbuster Video had a similar problem.

Harper also introduced two new lines, Lovesick and Studio Luxe. She said their first small collections sold better than expected, attracted younger customers, and earned more profit per item. The CEO points to their better-than-expected performance as a key reason Torrid can close 180 under-performing stores and still grow overall sales online. She now believes these new labels will make up about one-third of Torrid's revenue by 2026.

Before we dive into what to expect from Torrid's focus on digital infrastructure, note that the women's clothing line for plus-size shoppers already have some digital products in place. The company has a mobile app that has a 4.8 star rating on Apple Store. Torrid also offers a rewards program that gives you a $10 coupon for every $250 you spend, and a Buy Online, Pick Up In Store option that sends a text when your order is ready. It also lets you split payments into four with Klarna, so you can spread out the cost. Despite these, Torrid is putting $10 to $15 million toward its tech budget for fiscal year 2025. That funding could help its website load faster, keep better track of inventory, and use customer data to improve fit recommendations.

Customers who wonder what else might come can look at other brands for clues. For instance, Walmart's "Be Your Own Model" feature lets you upload a photo and see clothes in your own body shape and ASOS's "See My Fit" swaps in models wearing sizes 4 to 18 so you can judge how an item will look before buying. These have been shown to boost conversion rates. Onix 2025 research summary finds that companies that add these features see about 30% more visitors actually buying something, and customers send back 20% fewer items. Hence, Torrid is likely to invest in similar tools like online fitting rooms or AI styling.