Tilly’s(TLYS) - 2025 Q3 - Quarterly Results

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].