Why Did Torrid Holdings Plunge 10.24%? Q1 Sales Drop 4.9%

On June 6, 2025, Torrid Holdings experienced a significant drop of 10.24% in pre-market trading, reflecting a challenging period for the company.

Torrid Holdings, a prominent retailer of plus-size women's apparel, faced a challenging first quarter of 2025. The company reported a 4.9% year-over-year decline in sales, falling short of Wall Street's revenue expectations. This downturn was attributed to a difficult retail environment, which led to a decrease in net sales from $279.8 million in the previous year to $266 million.

Despite the revenue shortfall, Torrid Holdings managed to exceed analyst estimates for adjusted earnings per share, reporting $0.06 compared to the expected $0.05. However, the company's strategic response to the market challenges includes plans to close up to 180 stores this year, aiming to shift focus towards digital sales, which are projected to reach a low-to-mid 70% penetration by 2026.