Tilly’s ( (TLYS) ) has released its Q4 earnings. Here is a breakdown of the information Tilly’s presented to its investors.
Tilly’s, Inc., a specialty retailer of casual apparel, footwear, and accessories for young individuals, operates across 33 states and online, offering a wide range of iconic and emerging brands. The company recently reported its fiscal 2024 fourth-quarter results, highlighting a challenging period with a decrease in net sales and a net loss. Despite these setbacks, Tilly’s management is focused on stabilizing and growing sales in fiscal 2025 through improved inventory efficiencies and expense reductions.
In the fourth quarter of fiscal 2024, Tilly’s experienced a 14.9% decline in total net sales compared to the previous year, partly due to an extra week in fiscal 2023. Physical store sales decreased by 13.7%, while e-commerce sales dropped by 17.8%. Gross profit margins saw a slight improvement due to better initial markups, although overall profitability was impacted by lower sales volumes. The company reported a net loss of $13.7 million, an improvement from the previous year’s loss, which was affected by a significant tax asset valuation allowance.
For the full fiscal year 2024, Tilly’s net sales decreased by 8.6%, with both physical store and e-commerce sales experiencing declines. The company’s operating loss widened to $49.8 million, primarily due to increased SG&A expenses and lower sales. Despite these challenges, Tilly’s maintained a solid cash position with $46.7 million in cash and marketable securities and no debt under its credit facility.
Looking ahead, Tilly’s management is cautiously optimistic about fiscal 2025, aiming to operate without accessing its credit facility and expecting to end the first quarter with a strong cash position. The company plans to focus on enhancing its product offerings and managing costs effectively to navigate the current economic environment.