Tilly’s Q2 comparable sales decrease by 8.5 percent

Tilly’s, Inc. net sales were 160 million dollars, a decrease of 8.4 million dollars or 5 percent, while comparable net sales, including both physical stores and e-commerce, decreased by 8.5 percent.

For the first six months, net sales were 283.6 million dollars, a decrease of 30.5 million dollars or 9.7 percent, while comparable net sales, including both physical stores and e-com, decreased by 12.7 percent.

“After a slow start to the second quarter in May, the trend of our comp sales improved for the remainder of the quarter and our prudent expense management drove better than expected results for the second quarter,” said Ed Thomas, the company’s president and chief executive officer.

Commenting on the outlook, Thomas added: “We remain cautiously optimistic about the trend of our business considering the sequential improvement in our comp sales trend during fiscal August amid the peak of the back-to-school season to start the third quarter.”

Review of Tilly’s Q2 performance

Net sales from physical stores were 129.8 million dollars, a decrease of 7.3 million dollars or 5.3 percent, with a comparable store net sales decrease of 9.3 percent.

The company ended the quarter with 246 total stores compared to 242 total stores last year.

Net sales from e-com were 30.2 million dollars, a decrease of 1.1 million dollars or 3.4 percent and represented 18.9 percent of total net sales.

Gross profit was 44.3 million dollars or 27.7 percent of net sales, operating loss was 2.7 million dollars or negative 1.7 percent of net sales, and net loss was 1.1 million dollars or loss of 4 cents per share.

Highlights of Tilly’s H1

Net sales from physical stores were 227.6 million dollars, a decrease of 27 million dollars or 10.6 percent, with a comparable store net sales decrease of 14 percent. Net sales from physical stores represented 80.3 percent of total net sales.

Net sales from e-com were 56 million dollars, a decrease of 3.5 million dollars or 6 percent. E-com net sales represented 19.7 percent of total net sales.

Gross profit was 70.3 million dollars or 24.8 percent of net sales, operating loss was 19.9 million dollars or negative 7 percent of net sales, and net loss was 13.1 million dollars or loss of 44 cents per share.

Tilly’s third quarter outlook

The company said that total comparable net sales through August 29, 2023, including both physical stores and e-com, decreased by 3.9 percent relative to the comparable period of last year.

The company currently estimates that its third quarter net sales will be in the range of approximately 166 million dollars to 171 million dollars, translating to an estimated comparable net sales decrease in the range of approximately 5 percent to 8 percent.

The company estimates pre-tax loss to be in the range of approximately 1.8 million dollars to 4.3 million dollars and loss per share to be in the range of 5 cents to 11 cents.

The company expects to have 249 stores open at the end of the third quarter, a net increase of two stores from the end of last year’s third quarter.