By Kelly Cloonan

Shares of Torrid Holdings declined after the company said execution mistakes dented its latest quarterly results.

The stock slid 15% to $1.11 in after-hours trading on Wednesday. Through the market close shares are down 75% this year.

Chief Executive Lisa Harper said an imbalance in the plus-size apparel brand's assortment mix, particularly in its tops and jackets category, more than offset comparable growth in core categories like denim, dresses and intimates in the quarter.

"I want to be clear, these results largely reflected execution issues that are within our control," Harper said during a call with analysts.

Harper said the company shifted too heavily toward fashion-forward designs in its tops category at the expense of its core assortments in established franchises. The move hurt performance with long-standing customers who rely on Torrid for core wardrobe essentials rather than big style updates, she said.

"While innovation is important, the shift moved us too far from the functional, replenishable item," she said.

The company has worked to correct the issue, including improvements to its merchandising and assortment as well as the reintroduction of a more profitable footwear program. Those actions have led to early signs of improvement, she said.

In the quarter, Torrid posted a loss of $6.4 million, or 6 cents a share, compared with a loss of $1.2 million, or 1 cent a share, a year earlier. Analysts polled by FactSet expected a loss of 2 cents a share.

Revenue slid 11% to $235.2 million, missing analyst estimates of $239.9 million.

Same-store sales fell 8.3%.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

December 03, 2025 18:07 ET (23:07 GMT)

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