Fri, Jun 7, 8:10 PM (92 days ago)
Tilly’s, Inc. reported a net sales decline of 6.3% to $115.9 million for the quarter ended May 4, 2024, compared to $123.6 million in the same period last year. The decrease was attributed to a 9.4% drop in comparable store sales, impacted by economic uncertainties and inflation. Gross profit remained flat at 21.0% of net sales, with product margins improving by 130 basis points, offset by higher buying, distribution, and occupancy costs. SG&A expenses increased to 38.9% of net sales from 34.9% last year, driven by higher store payroll and non-cash asset impairment charges. The company reported an operating loss of $20.8 million, compared to $17.3 million last year, and a net loss of $19.6 million, or $0.65 per share, compared to $12.0 million, or $0.40 per share, in the prior year. Cash and cash equivalents decreased significantly to $19.9 million from $47.0 million, largely due to lower net sales. Tilly’s remains in compliance with its credit agreement covenants, with $57.7 million available under its $65.0 million revolving credit facility. The company plans to open four new stores and expects capital expenditures not to exceed $15 million for fiscal 2024.