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Tilly’s(TLYS) - 2025 Q3 - Quarterly Report
TLYSTilly’s(TLYS)2024-12-06 22:23

Financial Performance - Net sales for the thirteen weeks ended November 2, 2024, were 143.4million,adecreaseof13.8143.4 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 37.2million,representing25.937.2 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)millionforthesameperiodlastyear[94].−Netlosswas(2.5) million for the same period last year[94]. - Net loss was 12.9 million, or 0.43pershare,comparedtoanetlossof0.43 per share, compared to a net loss of 0.8 million, or 0.03persharelastyear[100].−Totalcomparablenetsalesforthe39−weekperioddecreasedby6.80.03 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 51.1million,or35.651.1 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 2millioninfiscal2024comparedtofiscal2023[85].−Netcashusedinoperatingactivitieswas2 million in fiscal 2024 compared to fiscal 2023[85]. - Net cash used in operating activities was 38.2 million, an increase of 27.7millioncomparedtolastyearduetolowernetsales[110].StoreOperations−ThecompanyopenedthreenewstoresinNovember2024andplanstoclose10underperformingstoresbytheendofthefiscalyear[85].−Thecompanyoperates246storesacross33states,downfrom249storesatthesametimelastyear[84].−Averagehourlyrateforstorepayrollincreasedby3127.7 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 10millionand10 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 65.0million[113].−AsofNovember2,2024,thecompanywaseligibletoborrowupto65.0 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 10.0millionforlettersofcreditand10.0 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].