Fri, Sep 6, 8:17 PM (114 days ago)
In the second quarter ended August 3, 2024, Tilly’s, Inc. reported net sales of $162.9 million, a slight increase of 1.8% year-over-year, primarily due to calendar shifts impacting back-to-school sales. However, comparable store sales decreased by 7.8%. Gross profit improved to $49.9 million, or 30.7% of net sales, compared to 27.7% in the previous year, driven by better product margins and lower markdowns. SG&A expenses rose to $50.8 million, 31.2% of net sales, reflecting higher payroll and digital marketing costs. The operating loss was reduced to $0.9 million from $2.7 million, with a net loss of $0.1 million, or $0.00 per share, compared to a loss of $1.1 million in Q2 2023. For the first half of fiscal 2024, total net sales decreased by 1.7% to $278.7 million, with a net loss of $19.7 million, or $0.66 per share. Cash flow from operations showed a significant increase in cash used, totaling $15.2 million, attributed to lower sales. Tilly's maintains a strong liquidity position, supported by cash reserves and an undrawn credit facility of $63 million. The company faces ongoing economic pressures, including inflation and rising labor costs, which could impact future performance.