US company Tilly's sales down by 7.1% in Q1 FY25

Net sales from physical stores were $85.9 million, a decrease of 7.4 per cent. Comparable store net sales decreased 7.1 per cent relative to the comparable 13-week period ended May 4, 2024. Net sales from physical stores represented 79.8 per cent of total net sales this year compared to 80.1 per cent of total net sales last year. The company ended the first quarter with 238 total stores compared to 246 total stores at the end of the first quarter last year.

Net sales from e-commerce were $21.7 million, a decrease of 5.8 per cent. E-commerce net sales decreased 6.6 per cent relative to the comparable 13-week period ended May 4, 2024. E-commerce net sales represented 20.2 per cent of total net sales this year compared to 19.9 per cent of total net sales last year, the company said in a press release.

Gross profit, including buying, distribution, and occupancy costs, was $21.3 million, or 19.8 per cent of net sales, compared to $24.3 million, or 21 per cent of net sales, last year. Product margin improved by 40 basis points, primarily, due to improved initial mark-ups; partially offset by increased inventory valuation reserves. Buying, distribution, and occupancy costs deleveraged by 160 basis points collectively, despite being $0.8 million lower than last year, primarily due to carrying these costs against a lower level of net sales this year.

"Our fiscal 2025 first quarter comparable net sales, while a decrease compared to last year's first quarter, were a sequential improvement in trend compared to the fourth quarter of fiscal 2024. Fiscal May, to start the second quarter, produced further sequential trend improvement relative to the first quarter," said Hezy Shaked, president and chief executive officer. "We believe our merchandise assortment is on trend, and we are encouraged by these signs that our business may be starting to stabilise. We continue to seek opportunities to accelerate progress toward improving our business."

Based on current and historical trends, the company currently estimates the net sales in the range of approximately $150 million to $158 million in the second quarter of fiscal 2025, translating to an estimated comparable net sales range of a decrease of 5 per cent to flat, respectively, relative to the comparable period last year.

ALCHEMPro News Desk (RR)