Torrid Holdings (NYSE: CURV) shares surged 12.48% in pre-market trading on Friday, following the release of better-than-expected fourth-quarter results and an optimistic outlook for fiscal 2025. The plus-size women's clothing retailer demonstrated resilience in a challenging retail environment and outlined strategic initiatives to drive future growth.

For the fourth quarter of fiscal 2024, Torrid reported net sales of $275.6 million and adjusted EBITDA of $16.7 million, exceeding expectations. The company saw positive response to its holiday and early spring lines, with momentum building towards the latter part of the quarter. Notably, Torrid successfully launched three new sub-brands, which drove significant excitement and engagement among both new and existing customers.

Looking ahead to fiscal 2025, Torrid is focusing on three strategic priorities: enhancing product assortment, driving customer growth, and executing store optimization plans. The company plans to close 40 to 50 underperforming stores while selectively opening 4 to 8 new locations in high-performing markets. With a strong cash position of $48.5 million and total liquidity of $158 million, Torrid is well-positioned to invest in growth initiatives. The company's guidance for fiscal 2025 projects sales between $1.080 billion and $1.100 billion, with adjusted EBITDA ranging from $100 million to $110 million, reflecting ongoing margin expansion initiatives and cost efficiencies.