Torrid's primary focus for fiscal 2026 is accelerating customer file growth by targeting over 7 million lapsed customers, improving segmentation and personalization, and evolving the loyalty program. The company is deploying resources, talent, and capital to reactivate customers, which is materially more cost-effective than paid acquisition.

Expected impact: Aims to increase purchase frequency among loyal customers and drive customer acquisition through highly targeted, data-driven marketing.

A comprehensive restructuring program to optimize Torrid's physical retail footprint by closing underperforming, low-margin stores and transitioning demand to digital and omnichannel channels.

Expected impact: Closed 151 stores in fiscal 2025 and an additional 20 stores in Q1 fiscal 2026 (reducing total store count to 463). The optimization is expected to deliver significant operating expense savings and drive Adjusted EBITDA margin expansion.

Scaling Torrid's curated sub-brands (such as Lovesick and Studio Luxe) to attract younger demographics and capture incremental market share in underserved plus-size categories.

Expected impact: Projected to grow sub-brand sales by 60% to approximately $110 million in fiscal 2026. Because sub-brands are bought with scarcity and achieve higher full-price sell-through, they carry higher product margins and are margin-accretive.

Expanding the opening price point assortment to constitute approximately 30% of the total online assortment and nearly 40% in physical stores, delivering accessible value to price-sensitive consumers.

Expected impact: Acts as a conversion driver and basket-building lever, improving customer reactivation, unit-per-transaction (UPT) metrics, and overall transaction frequency.