Tilly's, Inc. Reports Fiscal 2025 First Quarter Operating Results

Introduces Second Quarter Outlook with Improved Sequential Sales Trend

Tilly’s, Inc. (NYSE: TLYS, the "Company") today announced financial results for the first quarter of fiscal 2025 ended May 3, 2025.

"Our fiscal 2025 first quarter comparable net sales, while a decrease compared to last year's first quarter, were a sequential improvement in trend compared to the fourth quarter of fiscal 2024. Fiscal May, to start the second quarter, produced further sequential trend improvement relative to the first quarter," commented Hezy Shaked, President and Chief Executive Officer. "We believe our merchandise assortment is on trend, and we are encouraged by these signs that our business may be starting to stabilize. We continue to seek opportunities to accelerate progress toward improving our business."

Operating Results Overview

Fiscal 2025 First Quarter Operating Results Overview

The following comparisons refer to the Company's operating results for the first quarter of fiscal 2025 ended May 3, 2025 versus the first quarter of fiscal 2024 ended May 4, 2024.

  • Total net sales were $107.6 million, a decrease of 7.1%. Total comparable net sales, including both physical stores and e-commerce ("e-com"), decreased by 7.0% relative to the comparable 13-week period ended May 4, 2024. This result represented a 4.2 comp point improvement in sequential trend from fiscal 2024’s fourth quarter comparable net sales decrease of 11.2%



    • Net sales from physical stores were $85.9 million, a decrease of 7.4%. Comparable store net sales decreased 7.1% relative to the comparable 13-week period ended May 4, 2024. Net sales from physical stores represented 79.8% of total net sales this year compared to 80.1% of total net sales last year. The Company ended the first quarter with 238 total stores compared to 246 total stores at the end of the first quarter last year.



    • Net sales from e-com were $21.7 million, a decrease of 5.8%. E-com net sales decreased 6.6% relative to the comparable 13-week period ended May 4, 2024. E-com net sales represented 20.2% of total net sales this year compared to 19.9% of total net sales last year.



  • Gross profit, including buying, distribution, and occupancy costs, was $21.3 million, or 19.8% of net sales, compared to $24.3 million, or 21.0% of net sales, last year. Product margins improved by 40 basis points primarily due to improved initial markups, partially offset by increased inventory valuation reserves. Buying, distribution, and occupancy costs deleveraged by 160 basis points collectively, despite being $0.8 million lower than last year, primarily due to carrying these costs against a lower level of net sales this year.



  • Selling, general and administrative ("SG&A") expenses were $44.0 million, or 40.9% of net sales, compared to $45.1 million, or 38.9% of net sales, last year. The $1.1 million decrease in SG&A was primarily attributable to a decrease in store payroll and related benefits of $0.9 million and lower non-cash asset write-down charges of $0.5 million, partially offset by an increase in marketing expenses of $0.7 million. SG&A deleveraged by 190 basis points as a result of carrying these costs against a lower level of net sales this year.



  • Operating loss was $22.7 million, or 21.1% of net sales, compared to $20.8 million, or 17.9% of net sales, last year, due to the combined impact of the factors noted above.



  • Income tax benefit was $0.1 million, or 0.6% of pre-tax loss, compared to $13 thousand, or 0.1% of pre-tax loss, last year. Both years' income tax results include the continuing impact of a full, non-cash deferred tax asset valuation allowance. This year's income tax benefit also includes the refund of certain income tax credit carry forwards and state income tax carry back claims.



  • Net loss was $22.2 million, or $0.74 per share, compared to $19.6 million, or $0.65 per share, last year. Weighted average shares were 30.1 million this year compared to 30.0 million shares last year.

Balance Sheet and Liquidity

As of May 3, 2025, the Company had $37.2 million of cash, cash equivalents and marketable securities and $55.4 million of available, undrawn borrowing capacity under its asset-backed credit facility. Total inventories decreased by 3.8% as of May 3, 2025 compared to May 4, 2024. Total year-to-date capital expenditures at the end of the first quarter were $1.5 million this year compared to $2.1 million at the end of the first quarter of fiscal 2024.

Fiscal 2025 Second Quarter Outlook

Total comparable net sales for fiscal May ended May 31, 2025 decreased by 2.2% relative to the comparable period of last year. Based on current and historical trends, the Company currently estimates the following for the second quarter of fiscal 2025 ending August 2, 2025:

  • Net sales in the range of approximately $150 million to $158 million, translating to an estimated comparable net sales range of a decrease of 5% to flat, respectively, relative to the comparable period last year;
  • SG&A expenses in the range of approximately $48 million to $49 million, excluding any potential non-cash asset impairment charges that may arise;
  • Net loss of approximately $2.7 million to net income of approximately $2.0 million, respectively, with a near-zero effective income tax rate due to the continuing impact of a full, non-cash valuation allowance on deferred tax assets; and
  • Per share results to be in the range of a net loss of $0.09 to net income of $0.07, respectively.
  • Total quarter-ending store count of 232 compared to 247 at the end of last year's second quarter, with seven store closures and one new store opening during the quarter. At this time, the Company expects to close two additional stores in the third quarter and there are potentially 15 additional store closures which could occur toward the end of the fiscal year depending on the outcome of lease renewal negotiations with landlords.
  • Total quarter-ending liquidity of approximately $106 million to $111 million with no debt, comprised of total cash, cash equivalents and marketable securities in the range of approximately $43 million to $48 million, and available, undrawn borrowing capacity of approximately $63 million under its asset-backed credit facility. Based on its current projections, the Company does not anticipate needing to initiate borrowings under its credit facility at any time during fiscal 2025. The Company estimates it would take a consistent comparable net sales decrease of approximately 10% or more over the course of the remainder of the year to require any level of borrowing this year.

Conference Call Information

A conference call with analysts to discuss these financial results is scheduled for today, June 4, 2025, at 4:30 p.m. ET (1:30 p.m. PT). Analysts interested in participating in the call are invited to dial (877) 300-8521 (domestic) or (412) 317-6026 (international). The conference call will also be available to interested parties through a live webcast at www.tillys.com. Please visit the website and select the “Investor Relations�� link at least 15 minutes prior to the start of the call to register and download any necessary software. A telephone replay of the call will be available until June 11, 2025, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 10199579.

About Tillys

Tillys is a destination specialty retailer of casual apparel, footwear, and accessories for young men, young women, boys and girls with an extensive selection of iconic global, emerging, and proprietary brands rooted in an active, outdoor and social lifestyle. Tillys is headquartered in Irvine, California and currently operates 234 total stores across 33 states, as well as its website, www.tillys.com.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, statements regarding our current operating expectations in light of historical results, the improvement in our comparable net sales trend and our ability to maintain or improve upon it, the impacts of inflation, tariffs, and potential recession on us and our customers, including on our future financial condition or operating results, expectations regarding changes in the macro-economic environment, customer traffic, our supply chain, our ability to properly manage our inventory levels, and any other statements about our future cash position, financial flexibility, expectations, plans, intentions, beliefs or prospects expressed by management are forward-looking statements. These forward-looking statements are based on management’s current expectations and beliefs, but they involve a number of risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to the impact of inflation on consumer behavior and our business and operations, supply chain difficulties, and our ability to respond thereto, our ability to respond to changing customer preferences and trends, attract customer traffic at our stores and online, execute our growth and long-term strategies, expand into new markets, grow our e-commerce business, effectively manage our inventory and costs, effectively compete with other retailers, attract talented employees, or enhance awareness of our brand and brand image, general consumer spending patterns and levels, including changes in historical spending patterns, the markets generally, our ability to satisfy our financial obligations, including under our credit facility and our leases, and other factors that are detailed in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”), including those detailed in the section titled “Risk Factors” and in our other filings with the SEC, which are available on the SEC’s website at www.sec.gov and on our website at www.tillys.com under the heading “Investor Relations”. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We do not undertake any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. This release should be read in conjunction with our financial statements and notes thereto contained in our Form 10-K.

Tilly’s, Inc.

Consolidated Balance Sheets

(In thousands, except par value)

(unaudited)

 

May 3,

2025

 

February 1,

2025

 

May 4,

2024

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

27,231

 

 

$

21,056

 

 

$

19,880

 

Marketable securities

 

9,973

 

 

 

25,653

 

 

 

48,142

 

Receivables

 

4,914

 

 

 

4,094

 

 

 

7,135

 

Merchandise inventories

 

75,572

 

 

 

69,178

 

 

 

78,535

 

Prepaid expenses and other current assets

 

9,297

 

 

 

10,979

 

 

 

9,742

 

Total current assets

 

126,987

 

 

 

130,960

 

 

 

163,434

 

Operating lease assets

 

167,369

 

 

 

169,805

 

 

 

199,613

 

Property and equipment, net

 

37,876

 

 

 

40,139

 

 

 

45,442

 

Other assets

 

1,919

 

 

 

1,559

 

 

 

1,522

 

TOTAL ASSETS

$

334,151

 

 

$

342,463

 

 

$

410,011

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

31,778

 

 

$

11,120

 

 

$

22,013

 

Accrued expenses

 

12,317

 

 

 

12,750

 

 

 

12,712

 

Deferred revenue

 

13,305

 

 

 

14,116

 

 

 

14,127

 

Accrued compensation and benefits

 

7,537

 

 

 

9,418

 

 

 

8,457

 

Current portion of operating lease liabilities

 

47,931

 

 

 

48,384

 

 

 

52,662

 

Current portion of operating lease liabilities, related party

 

3,501

 

 

 

3,423

 

 

 

3,194

 

Other liabilities

 

141

 

 

 

172

 

 

 

253

 

Total current liabilities

 

116,510

 

 

 

99,383

 

 

 

113,418

 

Long-term liabilities:

 

 

 

 

 

Noncurrent portion of operating lease liabilities

 

123,452

 

 

 

126,216

 

 

 

151,875

 

Noncurrent portion of operating lease liabilities, related party

 

14,937

 

 

 

15,844

 

 

 

18,438

 

Other liabilities

 

137

 

 

 

149

 

 

 

278

 

Total long-term liabilities

 

138,526

 

 

 

142,209

 

 

 

170,591

 

Total liabilities

 

255,036

 

 

 

241,592

 

 

 

284,009

 

Stockholders’ equity:

 

 

 

 

 

Common stock (Class A)

 

23

 

 

 

23

 

 

 

23

 

Common stock (Class B)

 

7

 

 

 

7

 

 

 

7

 

Preferred stock

 

 

 

 

 

 

 

 

Additional paid-in capital

 

175,269

 

 

 

174,829

 

 

 

173,197

 

Accumulated deficit

 

(96,343

)

 

 

(74,191

)

 

 

(47,583

)

Accumulated other comprehensive income

 

159

 

 

 

203

 

 

 

358

 

Total stockholders’ equity

 

79,115

 

 

 

100,871

 

 

 

126,002

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

334,151

 

 

$

342,463

 

 

$

410,011

 

Tilly’s, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

(unaudited)

 

Thirteen Weeks Ended

 

May 3,

2025

 

May 4,

2024

Net sales

$

107,611

 

 

$

115,856

 

 

 

 

 

Cost of goods sold (includes buying, distribution, and occupancy costs)

 

85,394

 

 

 

90,612

 

Rent expense, related party

 

932

 

 

 

931

 

Total cost of goods sold (includes buying, distribution, and occupancy costs)

 

86,326

 

 

 

91,543

 

Gross profit

 

21,285

 

 

 

24,313

 

 

 

 

 

Selling, general and administrative expenses

 

43,841

 

 

 

44,968

 

Rent expense, related party

 

133

 

 

 

133

 

Total selling, general and administrative expenses

 

43,974

 

 

 

45,101

 

 

 

 

 

Operating loss

 

(22,689

)

 

 

(20,788

)

Other income, net

 

398

 

 

 

1,154

 

Loss before income taxes

 

(22,291

)

 

 

(19,634

)

Income tax benefit

 

(139

)

 

 

(13

)

Net loss

$

(22,152

)

 

$

(19,621

)

Basic net loss per share of Class A and Class B common stock

$

(0.74

)

 

$

(0.65

)

Diluted net loss per share of Class A and Class B common stock

$

(0.74

)

 

$

(0.65

)

Weighted average basic shares outstanding

 

30,060

 

 

 

29,962

 

Weighted average diluted shares outstanding

 

30,060

 

 

 

29,962

 

Tilly’s, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(unaudited)

 

Thirteen Weeks Ended

 

May 3,

2025

 

May 4,

2024

Cash flows from operating activities

 

 

 

Net loss

$

(22,152

)

 

$

(19,621

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

Depreciation and amortization

 

2,828

 

 

 

3,095

 

Stock-based compensation expense

 

440

 

 

 

566

 

Impairment of assets

 

1,008

 

 

 

1,663

 

Loss (gain) on disposal of assets

 

15

 

 

 

(16

)

Gain on maturities of marketable securities

 

(180

)

 

 

(708

)

Changes in operating assets and liabilities:

 

 

 

Receivables

 

(740

)

 

 

(822

)

Merchandise inventories

 

(6,394

)

 

 

(15,376

)

Prepaid expenses and other assets

 

1,559

 

 

 

2,690

 

Accounts payable

 

20,658

 

 

 

7,480

 

Accrued expenses

 

176

 

 

 

14

 

Accrued compensation and benefits

 

(1,881

)

 

 

(1,445

)

Operating lease liabilities

 

(2,602

)

 

 

(2,254

)

Deferred revenue

 

(811

)

 

 

(830

)

Other liabilities

 

(43

)

 

 

(126

)

Net cash used in operating activities

 

(8,119

)

 

 

(25,690

)

 

 

 

 

Cash flows from investing activities

 

 

 

Purchases of marketable securities

 

 

 

 

(29,496

)

Purchases of property and equipment

 

(1,522

)

 

 

(2,137

)

Proceeds from maturities of marketable securities

 

15,816

 

 

 

30,000

 

Proceeds from sale of property and equipment

 

 

 

 

23

 

Net cash provided by (used in) investing activities

 

14,294

 

 

 

(1,610

)

 

 

 

 

Cash flows from financing activities

 

 

 

Proceeds from exercise of stock options

 

 

 

 

153

 

Net cash provided by financing activities

 

 

 

 

153

 

 

 

 

 

Change in cash and cash equivalents

 

6,175

 

 

 

(27,147

)

Cash and cash equivalents, beginning of period

 

21,056

 

 

 

47,027

 

Cash and cash equivalents, end of period

$

27,231

 

 

$

19,880

 

Tilly's, Inc.

Store Count and Square Footage

 

Store

Count at

Beginning of Quarter

 

New Stores

Opened

During Quarter

 

Stores

Permanently Closed

During Quarter

 

Store Count at

End of Quarter

 

Total Gross

Square Footage

End of Quarter

(in thousands)

2024 Q1

248

 

2

 

4

 

246

 

1,784

2024 Q2

246

 

1

 

 

247

 

1,791

2024 Q3

247

 

 

1

 

246

 

1,780

2024 Q4

246

 

4

 

10

 

240

 

1,730

2025 Q1

240

 

1

 

3

 

238

 

1,707

 

Contacts

Investor Relations:

Michael Henry, Executive Vice President, Chief Financial Officer

(949) 609-5599, ext. 17000

irelations@tillys.com

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