Tilly’s Reports Q1 2025 Results Amid Sales Decline

Tilly’s ( (TLYS) ) has released its Q1 earnings. Here is a breakdown of the information Tilly’s presented to its investors.

Tilly’s, Inc. is a specialty retailer offering casual apparel, footwear, and accessories for young people, with a focus on active and social lifestyles, operating both physical stores and an e-commerce platform. In its fiscal 2025 first quarter, Tilly’s reported a decline in net sales compared to the previous year, although there was a sequential improvement from the fourth quarter of fiscal 2024. The company experienced a 7.1% decrease in total net sales, with physical store sales dropping by 7.4% and e-commerce sales by 5.8%. Despite these declines, the company noted an improvement in product margins due to better initial markups, although operating losses increased to $22.7 million from $20.8 million the previous year. Tilly’s management remains optimistic, anticipating a stabilization in business trends, with a projected net sales range of $150 million to $158 million for the second quarter of fiscal 2025. The company plans to manage its store count strategically, with potential closures based on lease negotiations, while maintaining a strong liquidity position with no anticipated need for borrowing in the near term.