Tillys Q4 2024 Earnings Report
Key Takeaways
Tillys' Q4 2024 revenue was $147.3 million, down 14.9% year-over-year due to weak store and e-commerce sales. Comparable net sales declined by 11.2%. Gross margin decreased to 26.0%, impacted by lower sales volume. SG&A expenses were reduced slightly but remained high relative to revenue. The company reported a net loss of $13.7 million, compared to a net loss of $20.6 million in Q4 2023.
Total revenue declined by 14.9% year-over-year to $147.3 million.
Comparable net sales decreased by 11.2%, reflecting lower store traffic and online sales.
Gross margin fell to 26.0%, down from 27.0% in Q4 2023.
Net loss improved to $13.7 million from $20.6 million in Q4 2023.
Tillys
Tillys
Tillys Revenue by Segment
Forward Guidance
Tillys expects continued sales pressure in Q1 2025 but aims to stabilize operations through cost reductions and improved inventory management.
Positive Outlook
- Spring assortment expected to align with consumer trends.
- Inventory efficiencies and cost-cutting measures planned for FY 2025.
- SG&A expenses expected to decline due to operational restructuring.
- No plans to access credit facility despite challenging sales environment.
- Cash position expected to remain stable through FY 2025.
Challenges Ahead
- Q1 2025 comparable net sales expected to decline by 8%-3%.
- Projected Q1 2025 revenue range of $105M-$111M, lower than Q1 2024.
- Continued weak store traffic and e-commerce performance.
- Operating losses expected to persist in the near term.
- Ongoing macroeconomic challenges impacting discretionary spending.
Revenue & Expenses
Visualization of income flow from segment revenue to net income