Tilly’s sales and earnings decline in Q4 and full year

Tilly’s, Inc. fourth quarter net sales were 180.4 million dollars, a decrease of 24.1 million dollars or 11.8 percent. Total comparable net sales, including both physical stores and e-commerce, decreased by 13.7 percent.

The company’s net sales from physical stores were 135 million dollars, a decrease of 17.1 million dollars or 11.3 percent with a comparable store net sales decrease of 14.1 percent. Net sales from e-com were 45.3 million dollars, a decrease of 7 million dollars or 13.4 percent.

Gross profit for the quarter was 52.4 million dollars or 29.1 percent of net sales, compared to 70.4 million dollars or 34.4 percent of net sales, last year. Operating loss was 1.1 million dollars or 0.6 percent of net sales. Net income was 0.3 million dollars or 1 cent per diluted share, compared to 12.1 million dollars or 38 cents per diluted share, last year.

"Our fourth quarter results exceeded our revised outlook ranges provided in early January. Despite a disappointing year overall, the ongoing impacts of the current inflationary environment, and potential recession concerns ahead, we remain cautiously optimistic that we will be well positioned to improve our operating results in fiscal 2023 compared to fiscal 2022," said Ed Thomas, the company’s president and chief executive officer.

Tilly’s FY22 net sales decrease by 13.3 percent

For fiscal year 2022, net sales were 672.3 million dollars, a decrease of 103.4 million dollars or 13.3 percent, while comparable net sales, including both physical stores and e-com, decreased by 14.6 percent.

Net sales from physical stores were 531.1 million dollars, a decrease of 78.6 million dollars or 12.9 percent with a comparable store net sales decrease of 14.5 percent. Net sales from e-com were 141.1 million dollars, a decrease of 24.8 million dollars or 15 percent.

Gross profit was 202.8 million dollars or 30.2 percent of net sales, compared to 276.7 million dollars or 35.7 percent of net sales, last year. Operating income was 11.5 million dollars or 1.7 percent of net sales, compared to 87.6 million dollars or 11.3 percent of net sales, last year.

Net income for the year was 10.1 million dollars or 33 cents per diluted share, compared to 64.2 million dollars or 2.06 dollars per diluted share, last year.

Tilly’s expects Q1 comparable sales to decline

Total comparable net sales through March 7, 2023, including both physical stores and e-com, decreased by 19.9 percent relative to the comparable period last year with a 21 percent decrease in fiscal February and a 17.3 percent decrease thus far in fiscal March.

The company believes its first quarter results have been adversely impacted by weather, particularly in California wherein approximately 40 percent of its stores reside and currently expects its comparable net sales trend to improve over the remainder of the quarter given easier prior year comparisons. The company currently estimates that its first quarter net sales will be in the range of approximately 122 million dollars to 133 million dollars, translating to an estimated comparable net sales decrease of approximately 11 percent to 18.5 percent compared to the first quarter of fiscal 2022.

Loss per share for the first quarter is expected to be in the range of 27 cents to 41 cents based on estimated weighted average shares of approximately 29.9 million.