Torrid maintains focus on digital transformation amid sales slowdown

Torrid models — Torrid, a direct-to-consumer apparel label known for its inclusive sizing, is pushing forward with its digital transformation and sub-brand strategy, despite a softening in net sales for the first quarter. (Source: Torrid)

By Kaycee Enerva June 9, 2025

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Torrid, the direct-to-consumer apparel label known for its inclusive sizing, is pushing forward with its digital transformation and sub-brand strategy, despite a softening in sales for the first quarter.

First-quarter net sales fell 4.9 per cent to $266 million compared to the same period last year, while the gross profit margin slipped to 38.1 per cent from 41.3 per cent.

CEO Lisa Harper said the company is focused on driving growth through its sub-brands and a more agile retail footprint.

“Our sub-brand strategy is delivering positive results, exceeding expectations and helping us reach new and younger customers while driving higher-margin sales,” Harper explained.

“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 next year.”

Net income was $5.9 million, down from $12.2 million, with adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reaching $27.1 million, representing 10.2 per cent of net sales.

Digital sales now account for nearly 70 per cent of total demand, according to Harper, underscoring the shift in consumer preferences.

“We’re accelerating our transformation to a more digitally-led business, which includes optimising our retail footprint,” she said.

The company plans to close up to 180 underperforming stores this year to reduce fixed costs and reinvest in customer acquisition and omnichannel capabilities.

At quarter end, the total store count was 632, following the closure of two stores.

Looking ahead to the full fiscal year, the company expects net sales to be between $1.03 billion and $1.055 billion, and adjusted EBITDA to be between $95 million and $105 million.

Meanwhile, capital spending of $10 million to $15 million will focus on infrastructure and technology.

The company anticipates a $20 million net tariff impact, to be fully offset by cost reductions and store optimisation.

“We remain in a strong financial position and are executing with clarity and focus,” Harper concluded.