Financial Performance - Total net sales for the first quarter of fiscal 2025 were $107.6 million, a decrease of 7.1% compared to $115.9 million in the same period last year[111]. - Comparable store net sales decreased by 7.0% relative to the comparable 13-week period ended May 4, 2024[114]. - Gross profit was $21.3 million, or 19.8% of net sales, down from $24.3 million, or 21.0% of net sales, last year[115]. - Net sales from physical stores were $85.9 million, a decrease of 7.4%, while e-commerce net sales were $21.7 million, a decrease of 5.8%[117]. - Operating loss was $22.7 million, or 21.1% of net sales, compared to $20.8 million, or 17.9% of net sales last year[118]. - Net loss was $22.2 million, or $0.74 net loss per share, compared to $19.6 million, or $0.65 net loss per share last year[120]. Store Operations - The company expects to close 12 stores during fiscal 2025, with seven already closed by May 2025[98]. - The company operated 238 stores as of May 3, 2025, down from 246 stores at the same time last year[93]. - Average net sales per physical store decreased to $353, down from $373 in the prior year[112]. Expenses - Store payroll and payroll-related expenses represented approximately 45% of total selling, general and administrative expenses in the first quarter of fiscal 2025[95]. - SG&A expenses were $44.0 million, or 40.9% of net sales, compared to $45.1 million, or 38.9% of net sales last year[116]. Cash Flow and Financing - Net cash used in operating activities was $8.1 million this year, a decrease of $17.6 million compared to $25.7 million last year[126]. - Net cash provided by investing activities was $14.3 million this year, compared to net cash used of $1.6 million last year[129]. - As of May 3, 2025, the company had no outstanding borrowings under the Credit Agreement and was eligible to borrow up to $55.4 million[135]. - The company expects to finance operations and capital expenditures with existing cash on hand and cash flows from operations[121]. Taxation - The effective income tax rate is expected to be near zero until the company can return to generating consistent operating profits[97]. - The income tax benefit was $0.1 million, or 0.6% of pre-tax loss, compared to $13 thousand, or 0.1% of pre-tax loss last year[119]. Future Outlook - The company anticipates that a consistent comparable net sales decrease of approximately 10% or more would necessitate borrowing under its credit facility[96]. - Working capital decreased to $10.5 million from $31.6 million, a decrease of $21.1 million[123].

Financial Performance - Tilly's reported a quarterly loss of $0.74 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.66, and compared to a loss of $0.48 per share a year ago, indicating a significant decline in performance [1] - The company posted revenues of $107.61 million for the quarter ended April 2025, missing the Zacks Consensus Estimate by 0.54%, and down from $115.86 million in the same quarter last year [2] - Over the last four quarters, Tilly's has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - Tilly's shares have declined approximately 68.5% since the beginning of the year, contrasting sharply with the S&P 500's gain of 1.5% [3] - The current Zacks Rank for Tilly's is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $147.22 million, and for the current fiscal year, it is -$1.24 on revenues of $549.87 million [7] - The trend of estimate revisions for Tilly's is mixed, and future changes in estimates will be closely monitored following the recent earnings report [6][7] Industry Context - The Retail - Apparel and Shoes industry, to which Tilly's belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests that the performance of stocks can be significantly influenced by the outlook for the industry [8]

Financial Data and Key Metrics Changes - For Q1 fiscal 2025, total net sales were $107.6 million, a decrease of 7.1% compared to the previous year [7] - Comparable net sales decreased by 7%, an improvement from an 11.2% decrease in Q4 fiscal 2024 [4] - Gross margin was 19.8% of net sales, down from 21% last year, while product margins improved by 40 basis points [9] - Net loss was $22.2 million or $0.74 per share, compared to a net loss of $19.6 million or $0.65 per share last year [11] Business Line Data and Key Metrics Changes - Net sales from physical stores decreased by 7.4%, while e-commerce net sales decreased by 5.8% [7] - Physical stores represented 79.8% of total net sales, while e-commerce represented 20.2% [8] Market Data and Key Metrics Changes - Total comparable net sales for May 2025 decreased by 2.2%, indicating a sequential improvement [11] - The company ended Q1 with 238 total stores, a net decrease of eight stores compared to the previous year [9] Company Strategy and Development Direction - The company is focusing on building mindshare with customers through marketing initiatives, including the launch of a TikTok shop [5] - Plans to close additional stores based on lease negotiations, with up to 15 potential closures by the end of the fiscal year [12] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about stabilization in business trends, particularly with the upcoming back-to-school season [20] - The impact of tariffs on product costs is currently considered minor, with expectations for product margins to be consistent or slightly better than last year [5][24] Other Important Information - Total liquidity at the end of Q1 was $92.6 million, with no borrowings and an undrawn borrowing capacity of $55.4 million [11] - The company expects to maintain a debt-free balance sheet throughout fiscal 2025 [12] Q&A Session Summary Question: Can you unpack the cadence of the first quarter sales? - February was down 5.7%, March down 13.8%, and April up 1.5%, with traffic down low single digits [16][17] Question: What are the expectations for the second quarter guidance? - The bulk of sales volume occurs at the end of the quarter, with cautious optimism for the back-to-school season [20] Question: Are there any impacts from tariffs on margins? - No material impact is expected from tariffs for the remainder of the year, with product margins anticipated to be consistent with last year [22][24] Question: Are there discussions with activist investors? - No discussions have occurred with new investors, and no requests for board seats have been made [37] Question: What is the outlook for product margins? - Product margins are expected to continue to leverage, depending on the ability to achieve flat or positive comparable sales [39]

Financial Performance - Total net sales for Q1 fiscal 2025 were $107.6 million, a decrease of 7.1% compared to Q1 fiscal 2024[3] - Comparable net sales decreased by 7.0%, with a sequential improvement of 4.2 comp points from Q4 fiscal 2024's decrease of 11.2%[3] - Gross profit was $21.3 million, or 19.8% of net sales, down from 21.0% in the previous year[3] - SG&A expenses were $44.0 million, or 40.9% of net sales, compared to 38.9% last year, reflecting a deleverage of 190 basis points[3] - Operating loss for the quarter was $22.7 million, or 21.1% of net sales, compared to $20.8 million, or 17.9% of net sales, in the prior year[3] - Net loss was $22.2 million, or $0.74 per share, compared to a net loss of $19.6 million, or $0.65 per share, last year[4] - Tilly's, Inc. reported a net loss of $22,152,000 for the thirteen weeks ended May 3, 2025, compared to a net loss of $19,621,000 for the same period in 2024, reflecting an increase in losses of approximately 8%[16] Inventory and Store Management - Total inventories decreased by 3.8% as of May 3, 2025, compared to the same date last year[5] - The company expects to end Q2 with a total store count of 232, down from 247 at the end of the previous year's second quarter[8] - Tilly's opened 1 new store and permanently closed 3 stores in Q1 2025, resulting in a total store count of 238 at the end of the quarter[18] - The total gross square footage of Tilly's stores decreased to 1,707,000 square feet by the end of Q1 2025, down from 1,730,000 square feet at the end of Q4 2024[18] - The company experienced a significant decrease in merchandise inventories, with a reduction of $6,394,000 compared to a decrease of $15,376,000 in the same quarter of 2024, showing improved inventory management[16] Cash Flow and Liquidity - The company generated net cash used in operating activities of $8,119,000, significantly improved from $25,690,000 in the prior year, indicating a reduction in cash outflow of about 68%[16] - Cash and cash equivalents at the end of the period increased to $27,231,000 from $19,880,000 year-over-year, representing a growth of approximately 37%[16] - Total liquidity is projected to be approximately $106 million to $111 million, with no debt and a cash position of $43 million to $48 million[8] - Tilly's had a cash inflow of $14,294,000 from investing activities, contrasting with a cash outflow of $1,610,000 in the same period last year, marking a substantial turnaround[16] Expenses and Asset Management - The company recorded depreciation and amortization expenses of $2,828,000, a decrease from $3,095,000 in the same quarter of the previous year, reflecting a reduction of about 9%[16] - The company reported stock-based compensation expense of $440,000, down from $566,000 in the same quarter of the previous year, reflecting a decrease of approximately 22%[16] - Tilly's reported a gain on the disposal of assets of $15,000, compared to a loss of $16,000 in the prior year, indicating a positive shift in asset management[16]

Financial Performance - Net sales for fiscal year 2024 were $569,453,000, a decrease of 8.6% from $623,083,000 in fiscal year 2023[176] - Comparable store sales declined by 8.0% in fiscal year 2024, following a 10.6% decrease in fiscal year 2023[176] - Gross profit for fiscal year 2024 was $149,697,000, representing 26.3% of net sales, down from 26.6% in fiscal year 2023[176] - Selling, general and administrative expenses increased to $199,546,000, or 35.0% of net sales, compared to 31.6% in fiscal year 2023[176] - Operating loss for fiscal year 2024 was $(49,849,000), compared to an operating loss of $(30,982,000) in fiscal year 2023[176] - Net loss was $46.2 million, or $1.54 per share, compared to a net loss of $34.5 million, or $1.16 per share, last year[184] - Operating loss widened to $49.8 million, or 8.8% of net sales, compared to a loss of $31.0 million, or 5.0% of net sales, last year[182] - Total net sales decreased by 8.6% to $569.5 million compared to fiscal 2023, with comparable net sales down 8.0%[177] E-commerce and Store Performance - E-commerce revenues for fiscal year 2024 were $124,728,000, accounting for 21.9% of net sales[176] - The average net sales per brick-and-mortar store decreased to $1,791,000 in fiscal year 2024 from $1,944,000 in fiscal year 2023[176] - Comparable store net sales decreased by 8.0%, with physical store sales down 8.4% and e-com sales down 9.3%[186] Capital Expenditures and Store Closures - Total capital expenditures for fiscal year 2025 are expected to be between $5 million and $10 million for new store openings and upgrades[165] - The company plans to close at least eight stores during the first half of fiscal year 2025[165] Working Capital and Cash Flow - Working capital decreased to $31.6 million from $71.5 million, a decline of $39.9 million[189] - Net cash used in operating activities was $42.0 million, significantly higher than $6.7 million last year, primarily due to lower net sales[192] Credit and Compliance - The company entered into a credit agreement providing for a revolving credit facility of up to $65.0 million[197] - As of February 1, 2025, the company was in compliance with all covenants and had no outstanding borrowings under the credit agreement[203] - The company has no outstanding borrowings under its credit facility as of February 1, 2025, and February 3, 2024[226] Accounting Policies and Estimates - The company has not experienced material impacts on historical results due to variances in critical accounting policies[212] - Revenue is recognized net of estimated sales returns, which are based on historical sales return results[214] - The company estimates breakage revenue from unredeemed gift cards based on historical redemption trends[215] - Unredeemed loyalty program awards are accrued as deferred revenue, impacting net sales[216] - Inventory is stated at the lower of cost or net realizable value, requiring management estimates for markdowns[217] - The company evaluates long-lived assets for impairment based on estimated future cash flows compared to carrying values[220] - Deferred tax assets are recorded based on the likelihood of realization, considering future taxable income and tax planning strategies[223] Economic and Market Conditions - The impact of inflation on operations has been deemed immaterial, although it may affect consumer behavior[227] - The company sources most merchandise domestically and has not been materially impacted by foreign exchange rate changes[228]

Financial Data and Key Metrics Changes - Total net sales for the fourth quarter of fiscal 2024 were $147.3 million, a decrease of 14.9% compared to the same period in fiscal 2023, with an extra week in last year's quarter accounting for $5.7 million in sales [7][10] - Comparable net sales, including both physical stores and e-commerce, decreased by 11.2% for the comparable thirteen-week period [7] - Gross margin was 26% of net sales, down from 27% in the previous year, while product margins improved by 190 basis points due to higher initial markups [8][9] - Total SG&A expenses were $52.4 million, or 35.6% of net sales, compared to $55.2 million, or 31.9% of net sales last year [9] Business Line Data and Key Metrics Changes - Net sales from physical stores decreased by 13.7%, representing 73.5% of total net sales, while e-commerce net sales decreased by 17.8%, accounting for 26.5% of total net sales [8] - The company ended the fiscal year with 240 total stores, a net decrease of eight stores compared to the end of fiscal 2023 [8] Market Data and Key Metrics Changes - The company experienced a significant decline in sales during November, with a 21% decrease, while December and January saw declines of 6% to 7% [32] - February's comparable net sales decreased by 5.7%, with a notable improvement during a warm weather period [11][35] Company Strategy and Development Direction - The company is adapting its brand and assortment mixes to improve sales and has planned reduced inventory commitments for fiscal 2025 [6] - Significant expense reductions are targeted through careful management of store leases, distribution, and corporate payroll [6] - The company aims to invest in expanded marketing efforts and new store opportunities while pursuing operational efficiencies [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the disappointing fourth quarter performance but expressed cautious optimism for improved sales trends as warmer weather approaches [5][11] - The company plans to operate with lower unit inventories throughout fiscal 2025 and expects to avoid accessing its credit facility if current trends continue [12][43] Other Important Information - Total capital expenditures in fiscal 2024 were $8.2 million, down from $14 million in fiscal 2023 [11] - The company expects to finalize an extension of its asset-backed credit facility with Wells Fargo Bank through July 2028 [12] Q&A Session Summary Question: Impact of tariffs on private label products - Management indicated that the tariff impact would be minor, with only one vendor potentially sharing increased costs [16][17] Question: Consumer impact amid recession concerns - Management expressed hope that merchandising changes could mitigate recessionary headwinds, though no guarantees were made [18] Question: Store openings and capital expenditures - Management stated they are opportunistic regarding store openings, with plans to close more unprofitable stores than to open new ones [21][24] Question: Commentary on fourth quarter comp results - Management noted that November was the weakest month, with a 21% decline, while December and January showed slight improvements [32] Question: Trends in February and future expectations - Management highlighted a significant improvement in sales during a warm weather period in February, leading to cautious optimism for future performance [35][36] Question: Inventory management and credit facility usage - Management confirmed plans to maintain lower inventory levels and indicated that they would not need to access the credit facility unless comp trends deteriorated significantly [42][43]

Financial Data and Key Metrics Changes - Total net sales for Q4 2024 were $147.3 million, a decrease of 14.9% compared to Q4 2023 [11] - Comparable net sales decreased by 11.2% for the 13-week period ended February 1, 2025 [12] - Gross margin was 26% of net sales, down from 27% in the previous year [13] - Net loss was $13.7 million or $0.45 per share, compared to a net loss of $20.6 million or $0.69 per share in the previous year [15] Business Line Data and Key Metrics Changes - Physical store net sales increased by 13.7% but decreased by 9.8% on a comparable basis [12] - E-commerce net sales decreased by 17.8%, representing 26.5% of total net sales [13] Market Data and Key Metrics Changes - The company ended the fiscal year with 240 total stores, a net decrease of eight stores compared to the end of fiscal 2023 [12] - Total inventories were 9.5% higher than at the end of fiscal 2023, but as of March 1, 2025, inventories were 6.1% below last year's level [16] Company Strategy and Development Direction - The company is focusing on reducing inventory commitments and improving product margins for fiscal 2025 [9] - Significant expense reductions are targeted through careful management of store leases and operational costs [11] - The company plans to continue investing in marketing and new store opportunities while pursuing operational efficiencies [11] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in Q4 performance but noted improvements in trends for the first quarter of fiscal 2025 [7][18] - There is cautious optimism regarding sales performance as warmer weather approaches, which may positively impact sales [45] - The company expects to operate without accessing its credit facility throughout fiscal 2025, provided that sales do not decline significantly [21][55] Other Important Information - Total capital expenditures in fiscal 2024 were $8.2 million, down from $14 million in fiscal 2023 [17] - The company anticipates a net loss per share in the range of $0.68 to $0.58 for the first quarter of fiscal 2025 [19] Q&A Session Summary Question: Impact of tariffs on the company - Management indicated that the tariff impact would be minor, affecting only one vendor for private label products [25] Question: Consumer impact from economic conditions - Management hopes that merchandising changes will help mitigate potential consumer headwinds [27] Question: Store openings and capital expenditures - The company plans to be opportunistic with store openings, having opened two profitable stores recently, but expects to close more unprofitable stores [31][32] Question: Commentary on Q4 comparable sales decline - Management noted that November was particularly weak, with a 21% decline, while December and January saw smaller declines [41] Question: Trends in February sales - February saw a 5.7% decline in comparable net sales, with a brief period of positive sales due to warmer weather [45] Question: Timing of merchandising changes - Management expects to see results from merchandising changes by July [50] Question: Inventory balance and credit facility usage - The company plans to maintain lower unit inventories throughout the year and does not expect to access the credit facility unless sales decline significantly [55]

Sales Performance - Total net sales for Q4 fiscal 2024 were $147.3 million, a decrease of 14.9% from the previous year, with comparable net sales down 11.2%[3] - Net sales from physical stores were $108.3 million, a decrease of 13.7%, while e-commerce sales were $39.0 million, down 17.8%[3] - For fiscal 2024, total net sales were $569.5 million, a decrease of 8.6% from fiscal 2023, with comparable net sales down 8.0%[6] - The company expects Q1 fiscal 2025 net sales to be in the range of $105 million to $111 million, with a comparable net sales decrease of approximately 8% to 3%[9] - Net sales for the thirteen weeks ended February 1, 2025, were $147.3 million, a decrease of 14.9% compared to $173.0 million for the fourteen weeks ended February 3, 2024[16] Profitability - Gross profit was $38.3 million, or 26.0% of net sales, compared to 27.0% last year, with product margins improving by 190 basis points[3] - Gross profit for the fiscal year ended February 1, 2025, was $149.7 million, down from $165.7 million in the previous year, reflecting a gross margin decline[16] - The net loss for fiscal 2024 was $46.2 million, or $1.54 per share, compared to a net loss of $34.5 million, or $1.16 per share, in the previous year[6] - The net loss for the fiscal year ended February 1, 2025, was $46.2 million, compared to a net loss of $34.5 million for the fiscal year ended February 3, 2024, indicating a worsening financial position[19] - Basic net loss per share for Class A and Class B common stock was $(1.54) for the fiscal year ended February 1, 2025, compared to $(1.16) for the previous year[16] Expenses - SG&A expenses were $52.4 million, or 35.6% of net sales, an increase from 31.9% last year, primarily due to the impact of an extra week in the previous year's results[3] - The company anticipates SG&A expenses for Q1 fiscal 2025 to be approximately $42 million to $43 million, excluding potential non-cash store asset impairment charges[9] - Total selling, general and administrative expenses for the fiscal year ended February 1, 2025, were $199.5 million, slightly up from $196.6 million in the previous year[16] Operating Loss - The operating loss for Q4 was $14.1 million, or 9.6% of net sales, compared to an operating loss of $8.5 million, or 4.9% of net sales, in the prior year[3] - The company reported an operating loss of $49.8 million for the fiscal year ended February 1, 2025, compared to an operating loss of $31.0 million for the previous year[16] Cash Flow and Inventory - Cash flows from operating activities resulted in a net cash used of $42.0 million for the fiscal year ended February 1, 2025, significantly higher than $6.7 million in the prior year[19] - As of February 1, 2025, the company had $46.7 million in cash and cash equivalents, with total inventories increasing by 9.5% compared to the end of fiscal 2023[5] - Cash and cash equivalents at the end of the period were $21.1 million, down from $47.0 million at the beginning of the period[19] - The company experienced a decrease in merchandise inventories, with a change of $(6.0) million for the fiscal year ended February 1, 2025[19] Store Operations - The company opened 2 new stores and permanently closed 4 stores during Q1 2024, resulting in a total store count of 246 at the end of the quarter[21]

Group 1 - Tilly's, a specialty retailer, is currently facing significant challenges in its business operations [1] - The company specializes in selling casual apparel, footwear, accessories, and some hard goods [1] Group 2 - Crude Value Insights provides an investment service focused on the oil and natural gas sector, emphasizing cash flow and growth potential [1] - Subscribers have access to a stock model account, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Financial Performance - Net sales for the thirteen weeks ended November 2, 2024, were $143.4 million, a decrease of 13.8% compared to $166.5 million for the same period last year[94]. - Gross profit for the same period was $37.2 million, representing 25.9% of net sales, down from 29.3% in the prior year[94]. - Operating loss for the thirteen weeks ended November 2, 2024, was $(14.1) million, compared to $(2.5) million for the same period last year[94]. - Net loss was $12.9 million, or $0.43 per share, compared to a net loss of $0.8 million, or $0.03 per share last year[100]. - Total comparable net sales for the 39-week period decreased by 6.8% to $422.2 million[101]. Expenses and Costs - Selling, general and administrative expenses increased to $51.1 million, or 35.6% of net sales, compared to 30.7% in the prior year[94]. - SG&A expenses increased to $51.3 million, or 35.7% of net sales, compared to 30.8% last year[98]. - Minimum wage increases are projected to cost the company an additional $2 million in fiscal 2024 compared to fiscal 2023[85]. - Net cash used in operating activities was $38.2 million, an increase of $27.7 million compared to last year due to lower net sales[110]. Store Operations - The company opened three new stores in November 2024 and plans to close 10 underperforming stores by the end of the fiscal year[85]. - The company operates 246 stores across 33 states, down from 249 stores at the same time last year[84]. - Average hourly rate for store payroll increased by 31% compared to fiscal 2019 and 4% compared to the first nine months of fiscal 2023[85]. Sales Trends - Total net sales decreased by 13.8% to $143.4 million, primarily due to a calendar shift impacting back-to-school sales[97]. - Comparable store net sales decreased by 3.4%, with physical store sales down 16.0% and e-commerce sales down 5.4%[97]. - E-commerce net sales represented 22.4% of total net sales, up from 20.4% last year[97]. Capital and Financing - Total capital expenditures for fiscal 2025 are expected to be between $10 million and $15 million for new store openings and technology upgrades[85]. - The company entered into a credit agreement with Wells Fargo Bank on April 27, 2023, providing a revolving credit facility of up to $65.0 million[113]. - As of November 2, 2024, the company was eligible to borrow up to $63.0 million and had no outstanding borrowings under the credit agreement[113]. - The company has a sub-limit of $10.0 million for letters of credit and $7.5 million for swing line loans within the credit agreement[113]. - The unused portion of the revolving commitment accrues a commitment fee of 0.375% per annum[113]. - The company is permitted to declare cash dividends or repurchase common stock starting April 27, 2024, provided certain conditions are met[113]. Market and Risk Factors - Comparable store net sales are influenced by economic trends, consumer preferences, and competition, among other factors[90]. - There were no material changes to the company's contractual obligations as of November 2, 2024[114]. - The company reported no material changes in market risks as of November 2, 2024[118].