Tilly’s holiday sales decrease, forecasts Q4 loss

Tilly’s, Inc. net sales results for the nine-week holiday period of 150.9 million dollars decreased by 12.9 percent.

The company said, total comparable net sales, including both physical stores and e-commerce, decreased by 14.4 percent compared to an increase of 14.1 percent for the 2021 holiday period. Total comparable net sales increased by 0.2 percent relative to the comparable period of pre-pandemic fiscal 2019.

“We believe this year’s inflationary environment negatively impacted our customers’ spending and our results during the 2022 holiday period, particularly when compared to 2021’s post-pandemic record-setting holiday period,” commented Ed Thomas, the company’s president and chief executive officer.

Highlights of Tilly’s holiday period results

Comparable net sales in physical stores decreased by 15.3 percent for the 2022 holiday period compared to an increase of 23.2 percent during the 2021 holiday period.

The company added that comparable net sales in physical stores decreased by double-digit percentages in each of the major geographic markets, while comparable net sales in physical stores decreased by 8.9 percent compared to 2019.

E-commerce net sales decreased by 12.8 percent compared to a decrease of 5.7 percent last year. E-commerce net sales increased by 37.3 percent relative to the comparable period of pre-pandemic fiscal 2019.

The company believes these results were negatively impacted by this year's inflationary environment compared to much more favourable market conditions during the 2021 holiday period resulting from several pandemic-related factors.

Tilly’s expects to report Q4 loss

Based on the company’s net sales results for the 2022 holiday period and recent historical trends for the fiscal month of January, Tilly’s now expects its fiscal 2022 fourth quarter net sales to be in the range of approximately 178 million dollars to 180 million dollars and its loss per share to be in the range of 1 cent to 4 cents.

The company expects to end fiscal 2022 with 249 total stores, total cash and marketable securities of approximately 110 million dollars, and with reduced inventory per square foot compared to the end of fiscal 2021.

“Despite a tougher holiday season this year, we anticipate ending fiscal 2022 with a healthy, debt-free balance sheet and well-managed inventory,” added Thomas.