Latest news with #Torrid
Miami Herald
3 days ago
- Business
- Miami Herald
Here's the horrible way Torrid workers learned about store closures
Losing your job is a soul-crushing experience, but being blindsided is even more gut-wrenching. Being an adult means you have the authority (most of the time) to do what you want without being told what to do. However, aging also comes with many responsibilities, like paying bills and working long hours to make ends meet. Don't miss the move: Subscribe to TheStreet's free daily newsletter E-commerce platforms have made shopping more convenient and time-efficient than ever, allowing consumers to purchase items from their favorite brands with the simple click of a button. However, their popularity has reduced the need for traditional shopping malls and brick-and-mortar stores, causing retailers to reduce their retail footprints and prioritize their online platforms. Related: Huge retail chain suddenly closing 100s of stores, no bankruptcy Over the last few years, Torrid has struggled with continuous sales declines, especially at mall locations, which comprise around 65% of its stores. Torrid (CURV) is a retail chain specializing in a wide range of plus-size women's clothing since 2001, with over 630 stores. The rise of online shopping has taken away Torrid's in-store clientele, with e-commerce sales now making up approximately 70% of the company's business. As around 60% of its leases are set to be renewed shortly, the retailer revealed plans to downsize its retail footprint by up to 30% during its first-quarter earnings call, leading it to announce the closure of 180 stores. Related: Bankrupt retail chain makes major comeback, reopens new stores However, that doesn't mean the end of all its physical stores. The shutdowns will allow Torrid to reduce fixed costs and reinvest in areas that drive long-term growth. Hence, the retail chain will revamp 135 key locations to make shopping at its brick-and-mortar stores more attractive to customers. The news about Torrid's store closures is already devastating enough, but what's even worse is how its employees found out about it. Although companies often let their employees know about any upcoming store closures or layoffs before making a public announcement, one person said they were a Torrid employee and learned about store closings on none other than social media, and at the same time as customers. More Retail News: Major bankrupt home retailer closing 26 stores, list revealedFormerly bankrupt retail chain closing more stores 5 years laterHuge HomeGoods rival files Chapter 11 bankruptcy, closes stores The person took to Reddit to express their frustration about the shocking news, posting an image of the social media announcement. "First they pause our merit increases a day before they take effect and now this? They constantly preach 'A players' yet corporate is not 'A players' themselves. I hope Torrid leadership is ashamed and embarrassed," they wrote. Although no specific date or locations have been revealed for the upcoming closures, the Reddit user claims that "maybe even 1,000" people will lose their jobs as a result. Another poster claiming to be a Torrid employee anonymously commented on the post, "Corporate does not care about us. They don't care about the customers, or employees. They never have. The only people who care are us." Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
4 days ago
- Business
- Miami Herald
Huge retail chain suddenly closing 100s of stores, no bankruptcy
One of the most confounding life lessons many of us eventually learn is that you hardly ever know you're in the good times until they're over. Andy Bernard from "The Office" may have phrased it best when he said, "I wish there was a way to know you were in the good old days before you actually left them." Related: Another giant cosmetics brand closing store unexpectedly For many retailers, this sentiment rings true. Take a look at your local shopping mall, central plaza, or even Main Street downtown. There is a good chance that, 10 or so years ago, these centralized shopping hubs were bustling with customers and gleaming "Open" signs, signifying a thriving commercial culture. Now, however, those days might be largely behind us. There's a better chance that, today, your local shopping mall stands largely unoccupied or underutilized. Your central shopping plazas are filled with vacancy or for-rent advertisements, or are instead home to one or two large, national big-box stores. And your downtown Main Street may even be boarded up. But things are particularly dire in the indoor shopping area. It's estimated that just under 9% of total available mall space in the U.S. lies vacant or un-leased. This is expensive for mall operators, but it's also costly for the tenants that already operate in malls. More closings: Popular local Dairy Queen rival suddenly closing, no bankruptcyAnother big Mexican chain closing down restaurant, no bankruptcyUPS suddenly closing more stores amid chaotic new change, layoffsPopular fast-food burger chain closes all restaurants in key area That's because malls typically charge outsized rent to their tenants for the opportunity to get more exposure to foot traffic. The more foot traffic a mall gets, the more foot traffic mall stores get. And that activity typically converts into sales. But that's not the case when people stop coming. As malls decline in popularity and folks opt instead to shop online or at discounters closer to town, profits dwindle. Which makes it even harder to justify paying those high rents for diminishing returns. And now, the popular clothing store Torrid is closing up to 30% of its footprint as sales decline, particularly in shopping malls. Torrid mostly caters to plus-size women, specializing in sizes 10-30. About 65% of Torrid stores are located within shopping malls, and around 60% of its leases are coming up for renewal shortly. Meanwhile, current estimates say up to 70% of Torrid's new demand comes from online shoppers. Related: Amazon makes a harsh decision amid concerning customer trend This means that operating out of shopping malls is a decreasingly lucrative model for the company. So Torrid announced it would shutter roughly 180 stores as it works to renovate its shopping model. The brand currently operates over 630 stores. Despite the closures, Torrid CEO Lisa Harper maintained that the brand is in a "strong financial position." Torrid plans to refresh about 135 stores in an effort to attract and maintain remaining brick-and-mortar customers. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Time of India
13-06-2025
- Business
- Time of India
Plus-size clothing retailer to close nearly 180 stores across US this year
Plus-size clothing retailer Torrid says it may close up to 30 per cent of its retail locations--close up to 180 underperforming stores-- this year as the company aims to reduce fixed costs and reinvest in long-term growth. The announcement came during a recent earnings report issued June 5. Torrid CEO, Lisa Harper said 70 per cent of the company's total demand is now coming from online shopping. The brand is known for direct-to-consumer apparel, intimates, and accessories for women sizes 10 to 30. Torrid to shut multiple stores in US Founded in 2001, clothing brand Torrid targets younger demographic of plus-size consumers and over the years, it has evolved into a standalone brand with more than 600 stores across the United States, the brand's website reveals. Torrid offers trendy and professional clothing designed exclusively for plus-size women. The store closures are a part of Torrid's move to a more digital-forward approach, the June 5th report said. Torrid CEO Lisa Harper said in a news release the retailer experienced a nearly 5 per cent decrease in first quarter sales compared to 2024. Since January, Torrid has already closed two locations, making the chain's total store count 632. Torrid debuted its first New York Fashion Week collection in 2017. "We're accelerating our transformation to a more digitally led business, which includes optimizing our retail footprint," Harper said. As of June 10, Torrid has not shared which locations would be closing. Torrid did not immediately respond for comment about the closures when contacted by USA TODAY. Torrid posted a net sales decrease of 4.9 percent in its first-quarter earnings report and it fell from USD 279 million for the first quarter of last year to USD 266 million this year. The company also reported a net loss of USD 7.3 million, compared to a USD 11.8 million profit during the same period in 2024. The closures "better align our current demand and sales channels," the report said. "We remain in a strong financial position and are executing with clarity and focus," Harper said. "I'm incredibly proud of our team's commitment to delivering innovative product, deepening customer connections, and building a more agile, resilient business for the future." Christine Murphy, who has advocated online for the plus-size clothing industry since 2016, told USA TODAY that she was "devastated" to learn of the store closures. She said "a good chunk" of her closet is from Torrid, not out of choice, but because it's one of the only remaining brick-and-mortars that offers her size. Despite the closures, the company reported first-quarter results that met expectations. Torrid reaffirmed its full-year 2025 outlook, anticipating net sales between USD 1.030 billion and USD 1.055 billion. While store closures are planned for the year, the timeline for winding down operations remains uncertain.
San Francisco Chronicle
12-06-2025
- Business
- San Francisco Chronicle
Popular clothing chain closing 180 stores — Bay Area locations could be among them
Torrid, a popular fashion retailer specializing in plus-size apparel, announced plans to shutter up to 180 stores nationwide before the end of the year, including locations across the Bay Area, as the company shifts focus toward its digital operations following a drop in sales. The decision comes as the California-based company reported a 4.9% year-over-year decline in net sales for the first quarter of 2025, down to $266 million from $279.8 million in the same period last year. Gross profit margins also fell, from 41.3% to 38.1%. 'We're accelerating our transformation to a more digitally led business, which includes optimizing our retail footprint,' said Lisa Harper, CEO of Torrid, in a statement. 'We now plan to close up to 180 underperforming stores this year — allowing us to reduce fixed costs and reinvest in areas that drive long-term growth, including customer acquisition and omnichannel enhancements.' It did not list specific locations targeted for closure. Founded in 2001, Torrid gained prominence in the 2010s through endorsements and collaborations with celebrities like Ashley Graham, Rebel Wilson and Gabourey Sidibe. The company currently operates 632 stores, down from 658 last May. Bay Area stores affected by the restructuring may include locations in Santa Rosa, Novato, Hayward, San Jose, Pleasant Hill and several others. Despite the downturn, Harper expressed confidence in the brand's trajectory. 'We remain in a strong financial position and are executing with clarity and focus,' she said. 'I'm incredibly proud of our team's commitment to delivering innovative product, deepening customer connections, and building a more agile, resilient business for the future.' Digital sales now make up nearly 70% of Torrid's total demand, according to the report, prompting the company's strategy to meet customers where they shop most.
Miami Herald
12-06-2025
- Business
- Miami Herald
Plus-Size Fashion Retailer Torrid To Close Up to 180 Locations This Year
Torrid Holdings Inc., the plus-size fashion retailer known for catering to women sizes 10 through 30, is closing multiple retail locations across the United States. The closures span malls and standalone stores. According to Torrid's official first-quarter earnings report, released June 5, the company plans to close 180 underperforming stores. The closures, Chief Executive Officer Lisa Harper said in the report, will allow the company to "reduce fixed costs and reinvest in areas that drive long-term growth, including customer acquisition and omnichannel enhancements." Newsweek contacted Torrid's media relations team for comment on Wednesday morning. Clothing brand Torrid was founded in 2001, targeting a younger demographic of plus-size consumers. Over the years, it evolved into a standalone brand with more than 600 stores across the U.S. and Canada, according to the brand's website, offering trendy and professional clothing designed exclusively for plus-size women. Torrid debuted its first New York Fashion Week collection in 2017. The brand has a dedicated online presence. In the report, Harper said that "digital continues to be our customer's preferred channel," with nearly 70 percent of Torrid customers using the online site. The closures come after the retailer experienced a nearly 5 percent drop in first-quarter sales compared to 2024. "We're accelerating our transformation to a more digitally led business, which includes optimizing our retail footprint," Harper said. Newsweek reached out to Torrid for a list of closing locations. A full list of operating Torrid locations is available on the company website. In its first-quarter earnings report, Torrid posted a net sales decrease of 4.9 percent, falling from $279 million for the first quarter of last year to $266 million this year. The company also reported a net loss of $7.3 million, compared to a $11.8 million profit during the same period in 2024. In the company's first quarter, two Torrid stores closed. As of early June, the company was operating 632 store locations, per the report. The closures "better align our current demand and sales channels," the report said. "We remain in a strong financial position and are executing with clarity and focus," Harper said. "I'm incredibly proud of our team's commitment to delivering innovative product, deepening customer connections, and building a more agile, resilient business for the future." Despite the closures, the company delivered results in line with expectations for its first quarter. Torrid maintained its full-year outlook for 2025, projecting net sales between $1.030 billion and $1.055 billion. Store closures are expected throughout the year, though it's unclear when operations will begin winding down. Related Articles Torrid Slammed for Campaign That Doesn't Include 'A Single Plus-Sized Body' 2025 NEWSWEEK DIGITAL LLC.
