Tilly’s(US:TLYS)2024-12-06 22:23Financial 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].