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 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]

Exhibit 99.1 Tilly's, Inc. Reports Fiscal 2024 Fourth Quarter Operating Results Irvine, CA – March 12, 2025 – Tilly's, Inc. (NYSE: TLYS, the "Company") today announced financial results for the fourth quarter of fiscal 2024 ended February 1, 2025. "Our fourth quarter results were a disappointment. We made a number of changes in our merchandising organization during the fourth quarter to attempt to change our sales trajectory going forward," commented Hezy Shaked, President and Chief Executive Officer. "For ...

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].

Financial Data and Key Metrics Changes - For Q3 2024, net sales were $143.4 million, a decrease of 13.8% compared to the previous year, primarily due to the impact of a 53rd week in last year's retail calendar, which shifted $18.4 million in net sales from Q3 to Q2 [11] - Comparable net sales for the 13-week period ended November 2, 2024, decreased by 3.4%, with a decline in store sales of 5.6% and an increase in e-commerce sales of 4.9% [11] - The 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 in the previous year [15] Business Line Data and Key Metrics Changes - Net sales from physical stores decreased by 16% and represented 77.6% of total net sales, while e-commerce net sales decreased by 5.4% and represented 22.4% of total net sales [11] - Gross margin was 25.9% of net sales, down from 29.3% last year, with buying, distribution, and occupancy costs deleveraging by 320 basis points [12] Market Data and Key Metrics Changes - Store traffic increased for the second consecutive quarter, although comparable sales in stores remained negative [9] - Comparable net sales through December 3, 2024, decreased by 15.3% relative to the same period last year, attributed to the timing shift of Thanksgiving and Black Friday [17] Company Strategy and Development Direction - The company is focusing on improving sales growth and profitability, with renewed marketing efforts and a new sponsorship with the Los Angeles Chargers aimed at mental health awareness [9] - A new price optimization tool is expected to launch in early 2025 to enhance pricing decisions and merchandise management efficiency [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in generating consistent sales growth and profitability but noted positive highlights in Q3 performance [7] - The company expects total net sales for Q4 to be in the range of approximately $149 million to $156 million, with a comparable net sales decline of 9% to 5% [18] Other Important Information - The company ended Q3 with total cash and marketable securities of $52 million and no debt [15] - Inventory levels were up 11.8% compared to the previous year, due to a strategic decision to pull forward inventory receipts [16] Q&A Session Summary Question: Is Hezy on the call today? - Hezy confirmed his presence on the call [23] Question: Can you clarify the merchandise margin situation? - Management discussed changes in merchandise strategy and the impact of markdowns on gross margins, indicating a roadmap for improvement [27][28] Question: What is the status of inventory levels? - Management explained the increase in inventory was a conscious decision to ensure timely delivery for Black Friday, with a temporary timing blip noted [33][36] Question: Can you clarify the Thanksgiving holiday sales figures? - Management clarified that the minus 10% figure was a quarter-to-date comparison, with a shifted basis providing a better perspective on sales performance [42][44] Question: What promotional strategies are in place? - Management indicated that typical holiday promotions would be utilized, focusing on profitability and productivity in gross margin dollars [60] Question: Any surprises in SG&A costs? - Management stated there were no unexpected costs, with careful planning of temporary labor needs based on expected volumes [62]

Company Performance - Tilly's reported a quarterly loss of $0.43 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.32, and compared to a loss of $0.03 per share a year ago, indicating a significant decline in performance [1] - The company posted revenues of $143.44 million for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 1.85%, but down from $166.48 million in the same quarter last year [2] - Over the last four quarters, Tilly's has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Tilly's shares have lost approximately 40.2% since the beginning of the year, contrasting with the S&P 500's gain of 27.6% [4] - The current Zacks Rank for Tilly's is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [7] Earnings Outlook - The current consensus EPS estimate for the coming quarter is -$0.13 on revenues of $170.92 million, and for the current fiscal year, it is -$0.92 on revenues of $590.52 million [8] - The estimate revisions trend for Tilly's is mixed, and future earnings expectations will depend on management's commentary during the earnings call [3][5] Industry Context - The Retail - Apparel and Shoes industry, to which Tilly's belongs, is currently in the top 31% of the Zacks industries, suggesting a favorable outlook compared to the bottom 50% [9]

Sales Performance - Total net sales for Q3 fiscal 2024 were $143.4 million, a decrease of 13.8% compared to the same period last year, primarily due to a calendar shift impacting back-to-school sales [6]. - Comparable net sales, including both physical stores and e-commerce, decreased by 3.4% relative to the comparable 13-week period ended November 4, 2023 [6]. - Net sales from physical stores were $111.3 million, a decrease of 16.0%, while e-commerce net sales were $32.2 million, a decrease of 5.4% [7][8]. - Year-to-date total net sales were $422.2 million, a decrease of 6.2%, with comparable net sales down by 6.8% [14]. - The company expects Q4 net sales to be in the range of approximately $149 million to $156 million, translating to an estimated comparable net sales decrease of approximately 9% to 5% [23]. - Net sales for the thirteen weeks ended November 2, 2024, were $143,442, a decrease of 13.8% compared to $166,475 for the same period last year [33]. Profitability - Gross profit was $37.2 million, or 25.9% of net sales, down from 29.3% last year, with product margins declining by 10 basis points [9]. - Gross profit for the thirteen weeks ended November 2, 2024, was $37,197, representing a gross margin of 25.9%, down from $48,719 and a gross margin of 29.2% in the prior year [33]. - The operating loss for Q3 was $14.1 million, or 9.8% of net sales, compared to a loss of $2.5 million, or 1.5% of net sales, last year [10]. - Operating loss for the thirteen weeks ended November 2, 2024, was $(14,054), compared to an operating loss of $(2,516) for the same period last year [33]. - Net loss for the thirty-nine weeks ended November 2, 2024, was $(32,565), compared to a net loss of $(13,940) for the same period last year [33]. Expenses - SG&A expenses were $51.3 million, or 35.7% of net sales, compared to 30.8% last year, largely due to increased e-commerce fulfillment costs [10]. Store Operations - The company plans to close 10 underperforming stores by the end of Q4, expecting to have 239 total stores open [24]. - The company opened 2 new stores during the quarter, bringing the total store count to 246 [38]. - The total gross square footage at the end of the quarter was 1,780,000 square feet [38]. Financial Position - As of November 2, 2024, the company had $51.7 million in cash and no debt, with total inventories increasing by 11.8% compared to the previous year [21]. - Total current assets decreased to $162,126 as of November 2, 2024, down from $176,059 in the previous quarter [31]. - Total liabilities decreased to $272,959 as of November 2, 2024, compared to $284,676 in the previous quarter [31]. - Cash and cash equivalents decreased to $26,407 as of November 2, 2024, from $47,027 in the previous quarter [31]. - The company reported a net cash used in operating activities of $(38,203) for the thirty-nine weeks ended November 2, 2024 [35].

Core Viewpoint - Tilly's reported 2Q24 results that met company guidance but showed significant challenges with an 8% decline in comparable sales, indicating ongoing issues with the business model and macroeconomic factors [1][2][4]. Financial Performance - Tilly's 2Q24 revenues increased by 2%, with a slight improvement in gross margins of 300 basis points, resulting in a break-even net income of a small loss of $70 thousand [4][5]. - The company has not experienced a positive comparable sales quarter since the 2021 fiscal year, with 2Q24 being the best comparable since then [4]. Future Outlook - The company anticipates more challenging results in 3Q24, expecting operating income losses of approximately $11 million due to the loss of an extra back-to-school week that contributed positively in 2Q24 [6]. - Comparable sales are projected to improve slightly, with a decline expected between 2% and 6%, as the company anniversaries a significant drop in sales from late 2022 and early 2023 [7]. Operational Challenges - Tilly's management has acknowledged issues with merchandising practices, which have hindered performance, and is working on addressing these problems [8]. - The company has launched a new brand campaign targeting micro-influencers to enhance brand awareness, although such efforts may take time to yield results [8]. Valuation Considerations - Tilly's current market capitalization is $145 million, with $75 million in cash and no debt, leading to an enterprise value of approximately $70 million [9]. - The company needs to achieve revenues of $675 million to break even, which represents an 8.5% increase from current levels, and $692 million to generate net profits of $7 million [11]. Business Model Viability - Tilly's is facing challenges beyond the macroeconomic environment, struggling to provide products that meet customer demands at acceptable price points, raising concerns about its long-term viability [10][12]. - The gap between a nonviable business model and a healthy return is minimal in terms of sales, suggesting potential speculative opportunities, but the lack of effective reforms and a challenging outlook make such speculation unattractive [12].

Financial Performance - Net sales for the thirteen weeks ended August 3, 2024, were $162.867 million, compared to $159.951 million for the same period in 2023[75] - Gross profit for the thirteen weeks ended August 3, 2024, was $49.920 million, representing 30.7% of net sales, up from 27.7% in the same period in 2023[75] - Operating loss for the thirteen weeks ended August 3, 2024, was $859,000, an improvement from the $2.685 million loss in the same period in 2023[75] - Net loss for the thirteen weeks ended August 3, 2024, was $69,000, compared to a net loss of $1.125 million in the same period in 2023[75] - Total cost of goods sold for the thirteen weeks ended August 3, 2024, was $112.947 million, representing 69.3% of net sales, down from 72.3% in the same period in 2023[75] - Selling, general and administrative expenses for the thirteen weeks ended August 3, 2024, were $50.779 million, representing 31.2% of net sales, up from 29.4% in the same period in 2023[75] - Total net sales for Q2 2024 were $162.9 million, a 1.8% increase compared to $160.0 million in Q2 2023, driven by a calendar shift impact[78] - Comparable store net sales decreased by 7.8% in Q2 2024, with physical store sales at $132.3 million (81.3% of total sales) and e-com sales at $30.5 million (18.7% of total sales)[78] - Gross profit for Q2 2024 was $49.9 million, or 30.7% of net sales, up from 27.7% in Q2 2023, due to improved product margins and lower markdowns[79] - SG&A expenses for Q2 2024 were $50.8 million, or 31.2% of net sales, up from 29.4% in Q2 2023, primarily due to increased store payroll and digital marketing expenses[80] - Operating loss for Q2 2024 was $0.9 million, or 0.5% of net sales, compared to $2.7 million, or 1.7% of net sales, in Q2 2023[81] - Total net sales for the first half of 2024 were $278.7 million, a 1.7% decrease compared to $283.6 million in the same period last year, with a comparable store net sales decline of 8.4%[81] - Gross profit for the first half of 2024 was $74.2 million, or 26.6% of net sales, up from 24.8% in the same period last year, driven by improved product margins[82] - SG&A expenses for the first half of 2024 were $95.9 million, or 34.4% of net sales, up from 31.8% in the same period last year, primarily due to increased store payroll and non-cash store asset impairment charges[83] - Net loss for the first half of 2024 was $19.7 million, or $0.66 per share, compared to a net loss of $13.1 million, or $0.44 per share, in the same period last year[85] Store Operations - The company operated 247 stores as of August 3, 2024, compared to 246 stores at the same time last year[65] - Store payroll and related expenses represented approximately 47% of total selling, general and administrative expenses in the first half of fiscal 2024[66] - The average hourly rate for store payroll in the first half of fiscal 2024 was 32% higher than in fiscal 2019 and 4% higher than in the first half of fiscal 2023[66] - Minimum wage increases are estimated to cost the company an additional $2 million during fiscal 2024 compared to fiscal 2023[66] Cash Flow and Capital - Working capital decreased by $20.1 million to $51.4 million at August 3, 2024, primarily due to lower cash and cash equivalents and an increase in accrued expenses[86][87] - Net cash provided by investing activities was $4.6 million this year compared to net cash used of $15.1 million last year[91] - Maturities of marketable securities in the first half of fiscal 2024 were $48.5 million, partially offset by purchases of $39.3 million and capital expenditures of $4.6 million[91] Credit Agreement - The company entered into a Credit Agreement with Wells Fargo Bank, providing a Revolving Facility of up to $65.0 million, with an uncommitted accordion feature allowing an increase of up to $12.5 million[91] - The Revolving Facility matures on April 27, 2026, and is secured by a lien on all company assets[91] - Borrowings under the Revolving Facility bear interest ranging from SOFR plus 1.50% to 2.00% or Base Rate plus 0.50% to 1.00%[91] - As of August 3, 2024, the company was eligible to borrow up to $63.0 million under the Credit Agreement with no outstanding borrowings[91] - The company utilized a $2.0 million irrevocable standby letter of credit under the Credit Agreement[91] Contractual Obligations and Market Risks - No material changes to contractual obligations as of August 3, 2024[92] - No material changes in market risks as of August 3, 2024[94]