Tilly’s ( (TLYS) ) has released its Q2 earnings. Here is a breakdown of the information Tilly’s presented to its investors.
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Tillys, Inc. is a specialty retailer offering casual apparel, footwear, and accessories for young individuals, with a focus on active, outdoor, and social lifestyles, operating both physical stores and an e-commerce platform.
In its fiscal 2025 second quarter, Tillys reported a decrease in total net sales by 7.1% compared to the previous year, yet managed to achieve a net income of $3.2 million, marking an improvement from a net loss in the same quarter last year. The company also welcomed Nate Smith as the new CEO, aiming to build on recent progress in sales and profitability.
Key financial metrics for the quarter included total net sales of $151.3 million, with a 4.5% decrease in comparable net sales. Physical store sales decreased by 7.3%, while e-commerce sales saw a 6.6% decline. Despite these reductions, the company improved its gross profit margin to 32.5% from 30.7% last year, aided by higher initial markups and lower markdowns. SG&A expenses decreased by $4.4 million, contributing to an operating income of $2.7 million.
Looking ahead, Tillys projects third-quarter net sales between $134 million and $140 million, with comparable net sales potentially ranging from a 2% decrease to a 2% increase. The company anticipates a net loss between $10.5 million and $7 million, while planning to maintain liquidity without drawing on its credit facility.
Tillys is cautiously optimistic about its future performance, focusing on stabilizing sales trends and improving profitability, while managing store closures and openings to optimize its retail footprint in a challenging market environment.