Torrid was introduced in 2011 as Hot Topic’s plus-size fashion line, aiming to address a market gap. It provides women’s clothing in sizes 10 to 30, offering trendy options for work, casual wear, and lingerie. Torrid’s goal has been to bring runway-inspired styles into denim, tops, and dresses that feel contemporary. By 2017, the brand had expanded to 487 stores nationwide, partly due to its empowering marketing and collaborations with influencers like Gabi Gregg. As of 2025, Torrid is recognized for its fashion-forward plus-size collections, particularly among women aged 25 to 40. However, the brand’s financial performance has recently been lacking.
In a press release dated June 5, Torrid reported a 4.9% decline in its first-quarter 2025 net sales, dropping to $266 million from $279.8 million the previous year. The company’s gross profit margin also decreased, falling to 38.1% from 41.3%, as heavier promotions and slower store traffic affected earnings. Subsequently, Torrid announced plans to close up to 180 under-performing stores — nearly 30% of its locations — to minimize fixed costs and allocate more resources to its e-commerce channel. Shrinking its physical footprint and focusing on online customers could stabilize the brand amid evolving consumer habits, a strategy similar to that adopted by iconic diner chain Denny’s, which closed numerous locations in 2025.
Torrid’s shift to digital
Torrid CEO Lisa Harper stated that the closure of up to 180 under-performing stores is part of a transition to a digital-first strategy. She mentioned that approximately 70% of customer demand now originates from online sales, although the company has not yet clarified the fate of employees at those locations or whether they will receive severance or other support. Harper stressed, however, that Torrid remains financially robust and is merely adjusting to a rapidly expanding e-commerce market.
According to FIS’s 2022 Global Payments Report, global online sales are expected to grow 55.3% from 2021 to 2025, reaching about $8.3 trillion. To remain competitive, many retailers, like Torrid, are decreasing their number of physical locations and investing more heavily in their online channels. Companies that failed to adapt, such as Sears, could not avoid bankruptcy as they neglected their website, logistics, and store technology while Amazon and Walmart modernized. Blockbuster Video faced a similar issue.
Harper also introduced two new lines, Lovesick and Studio Luxe. She noted that their initial small collections surpassed expectations, attracting younger customers and generating higher profit per item. The CEO considers their better-than-expected performance a crucial factor allowing Torrid to close 180 under-performing stores while still expanding overall online sales. She now anticipates that these new labels will account for approximately one-third of Torrid’s revenue by 2026.
What to anticipate from Torrid
Before exploring what to expect from Torrid’s focus on digital infrastructure, it’s important to note that the women’s clothing line for plus-size shoppers already offers some digital products. The company has a mobile app with a 4.8-star rating on the Apple Store. Torrid also provides a rewards program that offers a $10 coupon for every $250 spent and a Buy Online, Pick Up In Store option that sends a text when your order is ready. Additionally, it allows you to split payments into four with Klarna, enabling you to spread out the cost. Despite these offerings, Torrid is allocating $10 to $15 million to its tech budget for fiscal year 2025. This investment could enhance its website’s loading speed, improve inventory tracking, and use customer data to refine fit recommendations.
Customers curious about what else might be introduced can look at other brands for insight. For example, Walmart’s “Be Your Own Model” feature allows you to upload a photo and view clothes on your body shape, while ASOS’s “See My Fit” showcases models wearing sizes 4 to 18, allowing you to judge how an item will look before purchasing. These features have been shown to boost conversion rates. According to Onix’s 2025 research summary, companies that incorporate these features see about 30% more visitors making purchases, and customers return 20% fewer items. Therefore, Torrid is likely to invest in similar tools, such as online fitting rooms or AI styling.
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