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Tillys
🇺🇸 NYSE:TLYS
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Apr 29, 2023

Tillys Q1 2023 Earnings Report

Reported a net loss due to decreased net sales and reduced gross profit, impacted by a challenging economic environment.

Key Takeaways

Tilly's Inc. reported a decrease in net sales by 15.2% to $123.6 million for the first quarter of fiscal 2023, with a comparable net sales decrease of 17.5%. The company experienced a net loss of $(12.0) million, or $(0.40) per share, compared to a net income of $0.8 million, or $0.03 per diluted share, in the same quarter last year. The decline was attributed to the impact of inflation and potential recessionary concerns affecting their customer demographic.

Total net sales decreased by 15.2% to $123.6 million, with comparable net sales down by 17.5%.

Net sales from physical stores decreased by 16.7% to $97.8 million, while e-commerce sales decreased by 8.7% to $25.8 million.

Gross profit decreased to $25.9 million, or 21.0% of net sales, compared to $43.8 million, or 30.1% of net sales, in the previous year.

Operating loss was $(17.3) million, compared to an operating income of $1.1 million in the same quarter last year.

Total Revenue
$124M
Previous year: $146M
-15.2%
EPS
-$0.4
Previous year: $0.03
-1433.3%
Gross Margin
21%
Previous year: 30.1%
-30.2%
Gross Profit
$25.9M
Previous year: $43.8M
-40.8%
Cash and Equivalents
$43.7M
Previous year: $60M
-27.1%
Total Assets
$473M
Previous year: $486M
-2.6%

Tillys

Tillys

Tillys Revenue by Segment

Forward Guidance

The Company estimates that its fiscal 2023 second quarter net sales will be in the range of approximately $148 million to $158 million, translating to an estimated comparable net sales decrease of approximately 10% to 15% for the second quarter of fiscal 2023 compared to last year.

Positive Outlook

  • Net sales are expected to be between $148 million and $158 million.
  • The company expects to have 248 stores open at the end of the second quarter, a net increase of six stores from the end of last year's second quarter.
  • Estimated income tax rate to be approximately 26%.
  • The company is managing costs effectively.
  • Company is expanding store count.

Challenges Ahead

  • Comparable net sales are expected to decrease by approximately 10% to 15%.
  • SG&A expenses for the second quarter of fiscal 2023 to be in the range of approximately $49 million to $50 million.
  • Pre-tax loss to be in the range of approximately $(5) million to $(11) million.
  • Loss per share for the second quarter of fiscal 2023 to be in the range of $(0.13) to $(0.27).
  • Economic uncertainty impacting customer spending.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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