Tilly’s, a popular retailer in the US, saw a decrease in total net sales to $115.9 million in the first quarter of fiscal 2024, down 6.3% from the previous year. Comparable net sales, including in-store and online, also declined by 9.4%.
Net sales from physical stores for the company decreased by 5.1% to $92.8 million, with comparable store net sales dropping by 8.6%. Despite the decrease in physical store sales, they still accounted for 80.1% of total net sales. The company ended the first quarter with 246 stores, down from 248 stores the previous year.
E-commerce net sales for this year were $23.0 million, a 10.8% decrease from last year’s $25.8 million. This represented 19.9% of total net sales, compared to 20.9% last year. Gross profit, including various costs, was $24.3 million, or 21% of net sales, consistent with last year’s numbers. Product margins improved by 130 basis points due to lower markdown rates and improved initial markups.
Selling, general, and administrative expenses increased to $45.1 million, or 38.9% of net sales, compared to $43.2 million, or 34.9% of net sales, last year, leading to an operating loss of $20.8 million, or 17.9% of net sales. The net loss for the first quarter was $19.6 million, or $0.65 per share, compared to a net loss of $12 million, or $0.40 per share, last year. On a non-GAAP basis, the net loss was $14.5 million, or $0.48 per share.
Hezy Shaked, co-founder and interim president and CEO, acknowledges the challenges faced by the business due to the macro environment. However, he remains optimistic about progress made in improving product margins and increasing customer engagement through marketing efforts. Despite anticipating continued sales difficulties in the short term, he believes the current efforts will pay off in the future when conditions improve.
