Tillys Q3 2023 Earnings Report
Key Takeaways
Tilly's reported a decrease in total net sales by 6.4% to $166.5 million, and a net loss of $(0.8) million, or $(0.03) per share, compared to a net income of $5.1 million, or $0.17 per diluted share, last year. The company managed to protect product margins, manage inventories, and control operating expenses. Comparable net sales decreased by 9.0%.
Total net sales decreased by 6.4% to $166.5 million compared to last year.
Net loss was $(0.8) million, or $(0.03) per share, compared to net income of $5.1 million, or $0.17 per diluted share, last year.
Comparable net sales decreased by 9.0%, including both physical stores and e-commerce.
Operating loss was $(2.5) million, compared to operating income of $6.3 million last year.
Tillys
Tillys
Tillys Revenue by Segment
Forward Guidance
The Company currently estimates that its fiscal 2023 fourth quarter net sales will be in the range of approximately $172 million to $178 million, translating to an estimated comparable net sales decrease in the range of approximately (6)% to (9)% compared to last year.
Positive Outlook
- Fiscal 2023 fourth quarter net sales will be in the range of approximately $172 million to $178 million.
- E-commerce comparable net sales increased 11.0% through November 28, 2023.
- Estimated income tax rate to be approximately 26%.
- Focus on upgrades to certain distribution and information technology systems.
- Total capital expenditures for fiscal 2024 not to exceed $15 million.
Challenges Ahead
- Comparable net sales through November 28, 2023, decreased by (6.5)%.
- Comparable net sales decrease in physical stores of (13.6)% through November 28, 2023.
- Estimated comparable net sales decrease in the range of approximately (6)% to (9)% compared to last year.
- SG&A expenses for the fourth quarter of fiscal 2023 to be approximately $55 million to $56 million.
- Estimated loss per share for the fourth quarter of fiscal 2023 to be in the range of $(0.12) to $(0.20).
Revenue & Expenses
Visualization of income flow from segment revenue to net income