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].

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].