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Tilly's Inc. (TLYS-1.69%) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
The filing reports total net sales of $143.4 million, a decrease of 13.8% compared to the same period last year. This decrease was primarily due to a calendar shift caused by the previous year's 53rd week, which affected the back-to-school season sales.
Net sales from physical stores were $111.3 million, a 16.0% decrease, while e-commerce net sales were $32.2 million, a 5.4% decrease. Comparable store net sales decreased by 3.4%.
Gross profit for the quarter was $37.2 million, or 25.9% of net sales, compared to $48.7 million, or 29.3% of net sales, in the prior year. The decline in gross profit percentage was primarily due to an increase in buying, distribution, and occupancy costs.
Selling, general, and administrative expenses were $51.3 million, representing 35.7% of net sales, compared to $51.2 million, or 30.8% of net sales, last year. The increase in percentage was due to higher e-commerce fulfillment expenses and other factors.
Operating loss for the quarter was $14.1 million, or 9.8% of net sales, compared to an operating loss of $2.5 million, or 1.5% of net sales, in the previous year.
Pre-tax loss was reported at $12.9 million, or 9.0% of net sales, compared to $1.2 million, or 0.7% of net sales, last year.
The company recorded a net loss of $12.9 million, or $0.43 per share, compared to a net loss of $0.8 million, or $0.03 per share, in the prior year.
For the 39 weeks ended November 2, 2024, total net sales were $422.2 million, a decrease of 6.2% from the previous year. Comparable store net sales decreased by 6.8%.
Gross profit for the 39-week period was $111.4 million, or 26.4% of net sales, consistent with the prior year. However, the company faced increased costs in store payroll, software services, and e-commerce fulfillment.
The company reported an operating loss of $35.7 million, or 8.5% of net sales, for the 39-week period, compared to $22.5 million, or 5.0% of net sales, last year.
Net cash used in operating activities was $38.2 million, primarily due to lower net sales. Cash provided by investing activities was $17.3 million, mainly from maturities of marketable securities.
Tilly's Inc. continues to face challenges from inflationary pressures impacting consumer spending and operational costs. The company plans to open a limited number of new stores and upgrade certain technologies in fiscal 2025.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Tilly's Inc. quarterly 10-Q report dated December 6, 2024. To report an error, please email earnings@qz.com.