Tilly’s(US:TLYS)2025-12-04 21:18Store Operations - Tilly's operated 230 stores across 33 states as of November 1, 2025, down from 246 stores the previous year[104] - Tilly's expects to close a total of 21 stores during fiscal 2025, with 14 already closed by November 2025[108] Financial Performance - Net sales for the thirteen weeks ended November 1, 2025, were $139.6 million, a decrease of 2.0% compared to $143.4 million for the same period in 2024[120] - Total net sales for the third quarter were $139.6 million, a decrease of 2.7%, while comparable net sales increased by 2.0%[123] - Total net sales for the 39 weeks ended were $398.5 million, a decrease of 5.6%, with comparable net sales down by 3.0%[130] Comparable Store Sales - Comparable store net sales increased by 2.0% for the thirteen weeks ended November 1, 2025, compared to a decline of 3.4% for the same period in 2024[121] Gross Profit and Margins - Gross profit for the thirty-nine weeks ended November 1, 2025, was $113.0 million, representing 28.4% of net sales, compared to $111.4 million or 26.4% of net sales for the same period in 2024[120] - Gross profit was $42.6 million, or 30.5% of net sales, an improvement from 25.9% last year, with product margins increasing by 390 basis points[124] Operating Loss - Operating loss for the thirteen weeks ended November 1, 2025, was $1.9 million, significantly improved from a loss of $14.1 million for the same period in 2024[120] - Operating loss was $1.9 million, or 1.4% of net sales, significantly improved from a loss of $14.1 million, or 9.8% of net sales, last year[127] Net Loss - Net loss was $1.4 million, or $0.05 per share, compared to a net loss of $12.9 million, or $0.43 per share, last year[129] E-commerce Performance - E-commerce net sales for the thirteen weeks ended November 1, 2025, were $29.3 million, accounting for 21.0% of total net sales[121] - Net sales from physical stores were $110.3 million, a decrease of 0.9%, while e-com net sales were $29.3 million, a decrease of 9.0%[126] Expenses - SG&A expenses decreased to $44.5 million, or 31.9% of net sales, down from 35.7% last year, primarily due to reductions in store payroll and e-com fulfillment labor expenses[125] - Store payroll and related expenses accounted for approximately 47% of total selling, general and administrative expenses in the first nine months of fiscal 2025[106] Cash Flow and Working Capital - Net cash used in operating activities was $4.5 million, a significant improvement from $38.2 million last year, attributed to better inventory management[141] - Working capital decreased to $20.7 million from $31.6 million at the beginning of the fiscal year, primarily due to an increase in accounts payable[138] Tax and Compliance - The effective income tax rate is expected to remain near zero until consistent operating profits are achieved due to a full valuation allowance on deferred tax assets[107] - As of November 1, 2025, the company was in compliance with all covenants and had no outstanding borrowings under its credit agreement, with eligibility to borrow up to $61.6 million[151] Market Risks - As of November 1, 2025, there were no material changes in the market risks described in the Annual Report[154] Accounting Principles - The company prepares financial statements in accordance with generally accepted accounting principles, requiring estimates and assumptions about future events[153]