Torrid Q3 results miss expectations amid 'execution missteps'

Torrid Holdings Inc., the direct-to-consumer apparel brand for plus-size women, announced third-quarter fiscal 2025 results that fell short of expectations, attributing the performance to internal execution missteps and assortment imbalances.

Net sales for the quarter decreased by 10.8 percent year-over-year to 235.2 million dollars, accompanied by an 8.3 percent drop in comparable sales. The decline in sales, coupled with a contracted gross profit margin (34.9 percent vs. 36.1 percent last year), led to a widened net loss of 6.4 million dollars, or 6 cents per share, compared to a 1.2 million dollars loss in the prior year period.

CEO Lisa Harper confirmed the company has taken decisive corrective actions, including rebalancing the assortment mix, strengthening merchandising guardrails, and reintroducing a more profitable footwear program to address the missteps. Despite the challenges, Torrid is moving forward with its store optimization strategy, having closed 74 stores year-to-date with plans for up to 180 total closures by year-end.

For the full fiscal year 2025, the company expects net sales between 995 million dollars and 1.002 billion dollars and adjusted EBITDA between 59 million dollars and 62 million dollars, while anticipating a mitigated tariff exposure of 10 million dollars.