Torrid Holdings Inc. (CURV) had a rough Wednesday evening, with shares tumbling 14.5% to $1.12 in after-hours trading after the plus-size fashion retailer delivered third-quarter results that disappointed on multiple fronts.

The stock had closed regular trading at $1.31, down 0.76%, before the results hit. Then things got worse.

The Numbers Tell a Tough Story

For the quarter ended November 1, the California-based retailer posted a net loss of $6.4 million, or 6 cents per share. That's a substantial deterioration from the year-ago period, when Torrid logged a net loss of just $1.2 million, or 1 cent per share.

Revenue wasn't pretty either. Net sales dropped 10.8% to $235.2 million from $263.8 million in the same quarter last year, while comparable sales fell 8.3%.

CEO Takes Responsibility

Chief Executive Officer Lisa Harper didn't mince words when addressing the disappointing performance. "Our third-quarter results fell short of our expectations due to execution missteps that were largely within our control," she said.

Harper noted that while several core categories actually posted strong comparable growth, "these gains were more than offset by an imbalance in our assortment mix." In other words, Torrid had the right products in some areas but got the overall product mix wrong—a fixable problem, but a costly one.

Margins Under Pressure

The profitability picture showed similar deterioration. Gross profit margin compressed to 34.9% from 36.1% in the prior-year quarter. Meanwhile, adjusted EBITDA came in at $9.8 million, representing just 4.2% of net sales—down sharply from $19.6 million, or 7.4% of net sales, in last year's third quarter.

Looking Ahead and Scaling Back

For the full fiscal year, Torrid expects net sales between $995 million and $1.002 billion, with adjusted EBITDA in the range of $59 million to $62 million.

The company is in the midst of a significant store footprint reduction, planning to close up to 180 locations this fiscal year. It's already shuttered 74 stores, leaving 560 stores at the end of the quarter—down from 655 stores a year ago. That's a substantial contraction as the retailer adapts to changing market conditions.

The Bigger Picture

The after-hours decline extends what's already been a brutal year for CURV shareholders. The stock is down 61.81% over the past year, with shares trading within a 52-week range of $1.10 to $7.19. The company's market capitalization now sits at just $129.91 million.

According to market data, CURV shows a negative price trend across all time frames—not exactly the kind of momentum investors want to see as the company works through its operational challenges.