Women's fashion retailer Torrid closes 170 stores in turnaround push

When you look at mall traffic from a broad view, it seems like large-scale shopping centers remain on strong footing.

"Traffic to malls increased in Q1 2026 across all three formats analyzed – indoor malls, open-air shopping centers, and outlet malls – largely thanks to strong performances in the first two months of the year," according to Placer.ai's March Mall Index.

That, however, is not the full story, as some malls have thrived while others have struggled. It's a situation that has forced retailers like plus-sized women's fashion retailer Torrid to rethink their store portfolios.

Green Street Advisors, a commercial real estate research firm, uses a proprietary grading system to classify malls into A, B, and C tiers based on factors including tenant mix, sales per square foot, location, and physical condition.

• A malls = Strongest tenant mix, highest sales per square foot, best locations
• B malls = Mid-tier performance, mixed resilience
• C malls = Weakest fundamentals, often repurposed or declining

"The retail prospects for most malls graded ‘B-' or below are generally dire; many will be repurposed with another real estate use over the next decade," Green Street analysts told RetailDive.

Torrid closed more stores in Q1

Torrid confirmed that it planned to close stores in 2026 in an email to TheStreet's Kirk O'Neil.

"At this time, we know that some store closures are planned," a Torrid spokesperson said. "However, we do not have confirmed details on exactly how many stores will be affected or which specific locations may close.

Those closure have happened throughout the year and have continued in the company's most recent quarter.

"Turning to our store optimization initiative. In Q1, we substantially completed our store optimization program with an additional 20 closures of structurally unproductive locations, bringing the total to 171 closures since we initiated the program," CEO Lisa Harper said during Torrid's first quarter earnings call.

That's slightly fewer than the 180 closures the company originally forecast. Select stores, however, could still be closed.

"That work is now largely behind us. We have strategically rightsized our store fleet to one that is more productive, aligned and better positioned to serve our customer where and how she prefers to shop with us," she added.

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William Blair analysts Dylan Carden and Anna Linscott supported the chain's plans to reduce its retail footprint and shift to digital, Retail Dive reported.

"The bigger headline here for us is that management is taking a broader cut to store closures, which we believe is a positive step in freeing up capital to invest in new product and marketing to support clear momentum in its online channel," Carden and Linscott wrote.

Torrid faces slowing sales

While it has been closing stores, Torrid has also been battling an overall decline in sales and a drop in profitability. Some Q1 highlights include:

• Net sales decreased 7.6% to $245.8 million compared to $266 million for the first quarter of last year.
• Comparable sales decreased 1.7% in the first quarter.
• Gross profit margin was 35.3% compared to 38.1% in the first quarter of last year.
• Net income of $0.4 million, or $0.00 per share, compared to net income of $5.9 million, or $0.06 per share in the first quarter of last year.
  
  Source: Torrid

Harper, however, was pleased with the company's progress.

"We are pleased to report first quarter net sales of $245.8 million, slightly above our guidance, and adjusted EBITDA of $17.6 million at the high end of our guidance range. These results reect disciplined execution across our strategic initiatives and signal progress in positioning us for comparable sales growth in the back half of the year and beyond," she said in the earnings release.

Analysts, however, are mixed, according to a compendium of ratings compiled by Investing.com.

"The consensus rating for Torrid Holdings is "Neutral", based on insights from 4 analysts. 1 analysts recommend buying the stock, 1 suggest selling, and 4 recommend holding," the site shared.

Retailers like Torrid face a retention challenge

When a retailer closes a store, it runs the risk of losing the customers that shopped specifically at the location. That's something Harper addressed during Torrid's Q1 call.

"Customer retention through this transition has remained strong with our marketing efforts successfully redirecting traffic both online and to nearby stores. Equally important, the cost savings generated by the closure program are being reinvested directly and strategically into the initiatives designed to reignite growth in our customer file," she said.

TheStreet retail advisor and RTMNexus CEO Dominick Miserandino thinks customer retention amid closing stores is a bigger challenge than many retailers realize.

"Retailers abandoning B and C-tier malls think they can seamlessly migrate those shoppers online or to an off-mall lifestyle center, but they are 2 completely different markets," he told TheStreet.

Keeping shoppers requires having a deep connection with them in the first place, he explained.

"When you pull out of a regional mall, shoppers don't download your app or drive 30 minutes away. They simply alter their routine and buy from a competitor. You're changing the model of in-store experience to e-commerce, and that's not a quick-and-easy change for many shoppers," Miserandino added.

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This story was originally published June 9, 2026 at 5:05 PM.