Tillys Q3 2022 Earnings Report
Key Takeaways
Tilly's Inc. announced its Q3 2022 financial results, revealing total net sales of $177.8 million, a 13.7% decrease compared to the previous year. Despite a challenging environment, the company's performance exceeded expectations, and they are implementing strategies for improved fiscal 2023 performance.
Total net sales decreased by 13.7% to $177.8 million compared to last year.
Comparable net sales, including physical stores and e-commerce, decreased by 14.9%.
Gross profit was $54.6 million, or 30.7% of net sales, compared to $76.7 million, or 37.2% of net sales, last year.
Net income was $5.1 million, or $0.17 per diluted share, compared to $20.8 million, or $0.66 per diluted share, last year.
Tillys
Tillys
Tillys Revenue by Segment
Forward Guidance
The Company estimates Q4 2022 net sales to be in the range of approximately $183 million to $188 million and earnings per diluted share to be in the range of $0.02 to $0.06.
Positive Outlook
- Fourth quarter sales performance will revert to a more traditional holiday cadence, including being the largest sales quarter of the year
Challenges Ahead
- Total comparable net sales through November 29, 2022, including both physical stores and e-com, decreased by 18.5% relative to the comparable period last year.
- For Thanksgiving weekend, Thursday through Cyber Monday, total comparable net sales decreased by 13.4% compared to last year.
- The current business environment remains subject to many unpredictable risks and uncertainties including with respect to, among others, the current inflationary environment, continuing supply chain difficulties, labor challenges, the COVID-19 pandemic, geopolitical concerns, and how consumer behavior may change relative to any of these factors as well as last year's historical anomalies of pent-up demand coming out of pandemic-related restrictions and federal stimulus payments.
- The Company's estimates concerning its projected business performance may change at any time and there can be no guarantee that the Company's current estimates will be accurate.
Revenue & Expenses
Visualization of income flow from segment revenue to net income