Tilly’s Q2 comparable sales decrease by 7.8 percent

Tilly’s second quarter net sales were 162.9 million dollars, an increase of 2.9 million dollars or 1.8 percent, while comparable net sales, including both physical stores and e-commerce decreased by 7.8 percent. Total comparable net sales for the month of August increased by 1 percent.

For the third quarter, Tilly’s expects net sales to be in the range of approximately 140 million to 146 million dollars with an estimated comparable net sales decrease between 6 to 2 percent, pre-tax loss and net loss to be in the range of approximately 11.6 million to 8.7 million dollars, respectively.

"While the macro environment remains challenging for our customer demographic, we believe that our new pricing strategies are gaining traction as evidenced by our second consecutive quarter of improved product margins, and that we are beginning to drive improved customer engagement through our refocused marketing efforts," commented Hezy Shaked, the company’s co-founder and interim president and CEO.

Highlights of Tilly’s Q2 and H1 results

The company’s net sales from physical stores were 132.3 million dollars, an increase of 2.5 million dollars or 2 percent. Tilly’s ended the quarter with 247 total stores. Net sales from e-com were 30.5 million dollars, an increase of 0.4 million dollars or 1.3 percent.

Net sales for the first half were 278.7 million dollars, a decrease of 4.9 million dollars or 1.7 percent, while comparable net sales decreased by 8.4 percent. Net sales from physical stores were 225.2 million dollars, a decrease of 2.5 million dollars or 1.1 percent, net sales from e-com were 53.6 million dollars, a decrease of 2.4 million dollars or 4.3 percent.

Gross profit was 49.9 million dollars or 30.7 percent of net sales, operating loss was 0.9 million dollars or 0.5 percent of net sales. Pre-tax loss was 0.1 million dollars or break-even as a percentage of net sales, while net loss was 0.1 million dollars.

First half gross profit was 74.2 million dollars or 26.6 percent, operating loss was 21.6 million dollars or 7.8 percent of net sales, pre-tax loss was 19.7 million dollars or 7.1 percent of net sales and net loss was 19.7 million dollars or 66 cents net loss per share.

The company currently expects to have 246 total stores open at the end of the third quarter.