Tilly’s, Inc. (NYSE: TLYS, the "Company") today announced
financial results for the third quarter of fiscal 2024 ended
November 2, 2024.
"Our third quarter results included our best quarterly comp
sales performance since fiscal 2021, our first month of positive
comp sales since February 2022 during fiscal August, and our second
consecutive quarter of year-over-year store traffic growth,"
commented Hezy Shaked, Co-Founder, Executive Chairman, President
and Chief Executive Officer. "However, we still have a long way to
go to return to generating consistent sales growth and
profitability. We are disappointed in our net sales performance in
the early stages of the fourth quarter, yet somewhat encouraged by
our improved product margins thus far in the fourth quarter."
Operating Results Overview
Fiscal 2024 Third Quarter Operating
Results Overview
The following comparisons refer to the Company's operating
results for the third quarter of fiscal 2024 ended November 2, 2024
versus the third quarter of fiscal 2023 ended October 28, 2023.
- Total net sales were $143.4 million, a decrease of 13.8%. This
decrease was primarily attributable to the calendar shift impact of
last year's 53rd week in the retail calendar, which caused a
portion of the back-to-school season's sales volume to shift into
the second quarter this year from the third quarter last year,
resulting in a net sales reduction of $18.4 million in this year's
third quarter. Total comparable net sales, including both physical
stores and e-commerce ("e-com"), decreased by 3.4% relative to the
comparable 13-week period ended November 4, 2023.
- Net sales from physical stores were $111.3 million, a decrease
of 16.0%. Comparable store net sales decreased 5.6% relative to the
comparable 13-week period ended November 4, 2023. Net sales from
physical stores represented 77.6% of total net sales this year
compared to 79.6% of total net sales last year. The Company ended
the third quarter with 246 total stores compared to 249 total
stores at the end of the third quarter last year.
- Net sales from e-com were $32.2 million, a decrease of 5.4%.
E-com net sales increased 4.9% relative to the comparable 13-week
period ended November 4, 2023. E-com net sales represented 22.4% of
total net sales this year compared to 20.4% of total net sales last
year.
- Gross profit, including buying, distribution, and occupancy
costs, was $37.2 million, or 25.9% of net sales, compared to $48.7
million, or 29.3% of net sales, last year. Product margins were
generally consistent with last year's third quarter, declining by
10 basis points. Buying, distribution, and occupancy costs
deleveraged by 320 basis points collectively, despite being $0.7
million lower than last year, primarily due to carrying these costs
against a lower level of net sales this year.
- Selling, general and administrative ("SG&A") expenses were
$51.3 million, or 35.7% of net sales, compared to $51.2 million, or
30.8% of net sales, last year. Lower store payroll and related
benefits as well as lower non-cash store asset impairment charges
were largely offset by increased e-com fulfillment costs.
- Operating loss was $14.1 million, or 9.8% of net sales,
compared to $2.5 million, or 1.5% of net sales, last year, due to
the combined impact of the factors noted above.
- Pre-tax loss was $12.9 million, or 9.0% of net sales, compared
to $1.2 million, or 0.7% of net sales, last year.
- Income tax benefit was $5.0 thousand or 0.0% of pre-tax loss,
compared to $0.3 million, or 28.0% of pre-tax loss, last year. The
decrease in the effective income tax rate was due to the continuing
impact of the previously disclosed full, non-cash deferred tax
asset valuation allowance.
- Net loss was $12.9 million, or $0.43 net loss per share,
compared to $0.8 million, or $0.03 net loss per share, last year.
Weighted average shares were 30.1 million this year compared to
29.9 million shares last year.
Fiscal 2024 Year-to-Date Third Quarter
Operating Results Overview
The following comparisons refer to the Company's operating
results for the first 39 weeks of fiscal 2024 ended November 2,
2024 versus the first 39 weeks of fiscal 2023 ended October 28,
2023.
- Total net sales were $422.2 million, a decrease of 6.2%. Total
comparable net sales, including both physical stores and e-commerce
("e-com"), decreased by 6.8% relative to the comparable 39-week
period ended November 4, 2023.
- Net sales from physical stores were $336.4 million, a decrease
of 6.6%. Comparable store net sales decreased 7.4% relative to the
comparable 39-week period ended November 4, 2023. Net sales from
physical stores represented 79.7% of total net sales this year
compared to 80.0% of total net sales last year.
- Net sales from e-com were $85.8 million, a decrease of 4.7%.
E-com net sales decreased 4.6% relative to the comparable 39-week
period ended November 4, 2023. E-com net sales represented 20.3% of
total net sales this year compared to 20.0% of total net sales last
year.
- Gross profit, including buying, distribution, and occupancy
costs, was $111.4 million, or 26.4% of net sales, compared to
$119.0 million, or 26.4% of net sales, last year. Product margins
improved by 130 basis points primarily due to the combination of
improved initial markups and lower total markdowns. Buying,
distribution, and occupancy costs deleveraged by 140 basis points
collectively, despite being $1.3 million lower than last year,
primarily due to carrying these costs against lower net sales this
year.
- SG&A expenses were $147.1 million, or 34.9% of net sales,
compared to $141.4 million, or 31.4% of net sales, last year. The
$5.7 million increase in SG&A was primarily attributable to
increases in store payroll and related benefits of $1.6 million due
to wage rate increases, software as a service expense of $1.4
million, corporate payroll and related benefits of $1.2 million,
e-commerce fulfillment expenses of $1.0 million, and non-cash store
asset impairment charges of $1.0 million. These increases were
partially offset by a variety of smaller expense decreases.
- Operating loss was $35.7 million, or 8.5% of net sales,
compared to $22.5 million, or 5.0% of net sales, last year, due to
the combined impact of the factors noted above.
- Pre-tax loss was $32.6 million, or 7.7% of net sales, compared
to $18.8 million, or 4.2% of net sales, last year.
- Income tax benefit was $21.8 thousand or 0.1% of pre-tax loss,
compared to $4.9 million, or 26.0% of pre-tax loss, last year. The
decrease in the effective income tax rate was due to the continuing
impact of the previously disclosed full, non-cash deferred tax
asset valuation allowance.
- Net loss was $32.6 million, or $1.08 net loss per share,
compared to $13.9 million, or $0.47 net loss per share, last year.
Weighted average shares were 30.0 million this year compared to
29.8 million shares last year.
Balance Sheet and Liquidity
As of November 2, 2024, the Company had $51.7 million of cash,
cash equivalents and marketable securities and no debt outstanding.
Total inventories increased 11.8% as of November 2, 2024 compared
to October 28, 2023, largely due to pulling forward new inventory
receipts to improve distribution center efficiencies. Total
year-to-date capital expenditures at the end of the third quarter
were $6.7 million this year compared to $10.5 million last
year.
Fiscal 2024 Fourth Quarter Outlook
Total comparable net sales through December 3, 2024 decreased by
15.3% relative to the comparable period of last year ended December
5, 2023, with meaningfully improved product margins compared to
last year. On a shifted basis, lining up the timing of this year's
Thanksgiving holiday with last year's, total comparable net sales
through December 3, 2024, decreased by 9.6% relative to the
comparable period of last year ended November 28, 2023. Based on
current and historical trends, the Company currently estimates the
following for the fourth quarter of fiscal 2024:
- Net sales to be in the range of approximately $149 million to
$156 million, translating to an estimated comparable net sales
decrease in the range of approximately 9% to 5%, respectively,
relative to the comparable 13-week period last year;
- Product margin improvement of approximately 200 basis points
relative to last year's fourth quarter;
- SG&A expenses to be approximately $52 million before
factoring in any potential non-cash store asset impairment charges
that may arise;
- Pre-tax loss and net loss to be in the range of approximately
$13.0 million to $9.5 million, respectively, with a near-zero
effective income tax rate due to the continuing impact of a full,
non-cash valuation allowance on deferred tax assets; and
- Per share results to be in the range of a net loss of $0.43 to
$0.32, respectively, with estimated weighted average shares of
approximately 30 million.
The Company currently expects to have 239 total stores open at
the end of the fourth quarter of fiscal 2024. The Company opened
three new stores in November and currently expects to close 10
predominantly underperforming stores near the end of the
quarter.
Conference Call Information
A conference call with analysts to discuss these financial
results is scheduled for today, December 5, 2024, at 4:30 p.m. ET
(1:30 p.m. PT). Analysts interested in participating in the call
are invited to dial (877) 300-8521 (domestic) or (412) 317-6026
(international). The conference call will also be available to
interested parties through a live webcast at www.tillys.com. Please
visit the website and select the “Investor Relations” link at least
15 minutes prior to the start of the call to register and download
any necessary software. A telephone replay of the call will be
available until December 12, 2024, by dialing (844) 512-2921
(domestic) or (412) 317-6671 (international) and entering the
conference identification number: 10193481.
About Tillys
Tillys is a leading, destination specialty retailer of casual
apparel, footwear, accessories and hardgoods for young men, young
women, boys and girls with an extensive selection of iconic global,
emerging, and proprietary brands rooted in an active, outdoor and
social lifestyle. Tillys is headquartered in Irvine, California and
currently operates 249 total stores across 33 states, as well as
its website, www.tillys.com.
Forward-Looking Statements
Certain statements in this press release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. In particular, statements regarding our current
operating expectations in light of historical results, the impacts
of inflation and potential recession on us and our customers,
including on our future financial condition or operating results,
expectations regarding changes in the macro-economic environment,
customer traffic, our supply chain, our ability to properly manage
our inventory levels, and any other statements about our future
cash position, financial flexibility, expectations, plans,
intentions, beliefs or prospects expressed by management are
forward-looking statements. These forward-looking statements are
based on management’s current expectations and beliefs, but they
involve a number of risks and uncertainties that could cause actual
results or events to differ materially from those indicated by such
forward-looking statements, including, but not limited to the
impact of inflation on consumer behavior and our business and
operations, supply chain difficulties, and our ability to respond
thereto, our ability to respond to changing customer preferences
and trends, attract customer traffic at our stores and online,
execute our growth and long-term strategies, expand into new
markets, grow our e-commerce business, effectively manage our
inventory and costs, effectively compete with other retailers,
attract talented employees, or enhance awareness of our brand and
brand image, general consumer spending patterns and levels,
including changes in historical spending patterns, the markets
generally, our ability to satisfy our financial obligations,
including under our credit facility and our leases, and other
factors that are detailed in our Annual Report on Form 10-K, filed
with the Securities and Exchange Commission (“SEC”), including
those detailed in the section titled “Risk Factors” and in our
other filings with the SEC, which are available on the SEC’s
website at www.sec.gov and on our website at www.tillys.com under
the heading “Investor Relations”. Readers are urged not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. We do not undertake any
obligation to update or alter any forward-looking statements,
whether as a result of new information, future events or otherwise.
This release should be read in conjunction with our financial
statements and notes thereto contained in our Form 10-K.
Tilly’s, Inc.
Consolidated Balance
Sheets
(In thousands, except par
value)
(unaudited)
November 2,
2024
February 3,
2024
October 28,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
26,407
$
47,027
$
44,425
Marketable securities
25,321
48,021
49,523
Receivables
6,136
5,947
7,118
Merchandise inventories
92,481
63,159
82,753
Prepaid expenses and other current
assets
11,781
11,905
11,816
Total current assets
162,126
176,059
195,635
Operating lease assets
181,117
203,825
216,205
Property and equipment, net
42,603
48,063
49,220
Deferred tax assets, net
—
—
13,229
Other assets
1,424
1,598
1,685
TOTAL ASSETS
$
387,270
$
429,545
$
475,974
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
32,577
$
14,506
$
27,025
Accrued expenses
12,771
13,063
14,688
Deferred revenue
13,333
14,957
13,520
Accrued compensation and benefits
8,127
9,902
10,590
Current portion of operating lease
liabilities
49,944
48,672
50,063
Current portion of operating lease
liabilities, related party
3,345
3,121
3,048
Other liabilities
210
336
330
Total current liabilities
120,307
104,557
119,264
Long-term liabilities:
Noncurrent portion of operating lease
liabilities
135,724
160,531
171,388
Noncurrent portion of operating lease
liabilities, related party
16,736
19,267
20,081
Other liabilities
192
321
391
Total long-term liabilities
152,652
180,119
191,860
Total liabilities
272,959
284,676
311,124
Stockholders’ equity:
Common stock (Class A)
23
23
23
Common stock (Class B)
7
7
7
Preferred stock
—
—
—
Additional paid-in capital
174,516
172,478
171,754
Accumulated deficit
(60,527
)
(27,962
)
(7,410
)
Accumulated other comprehensive income
292
323
476
Total stockholders’ equity
114,311
144,869
164,850
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
387,270
$
429,545
$
475,974
Tilly’s, Inc.
Consolidated Statements of
Operations
(In thousands, except per share
data)
(unaudited)
Thirteen Weeks Ended
Thirty-Nine Weeks
Ended
November 2,
2024
October 28,
2023
November 2,
2024
October 28,
2023
Net sales
$
143,442
$
166,475
$
422,165
$
450,063
Cost of goods sold (includes buying,
distribution, and occupancy costs)
105,314
116,825
307,939
328,297
Rent expense, related party
931
931
2,796
2,793
Total cost of goods sold (includes
buying, distribution, and occupancy costs)
106,245
117,756
310,735
331,090
Gross profit
37,197
48,719
111,430
118,973
Selling, general and administrative
expenses
51,118
51,101
146,734
141,035
Rent expense, related party
133
134
397
400
Total selling, general and
administrative expenses
51,251
51,235
147,131
141,435
Operating loss
(14,054
)
(2,516
)
(35,701
)
(22,462
)
Other income, net
1,174
1,341
3,114
3,625
Loss before income taxes
(12,880
)
(1,175
)
(32,587
)
(18,837
)
Income tax benefit
(5
)
(328
)
(22
)
(4,897
)
Net loss
$
(12,875
)
$
(847
)
$
(32,565
)
$
(13,940
)
Basic net loss per share of Class A and
Class B common stock
$
(0.43
)
$
(0.03
)
$
(1.08
)
$
(0.47
)
Diluted net loss per share of Class A and
Class B common stock
$
(0.43
)
$
(0.03
)
$
(1.08
)
$
(0.47
)
Weighted average basic shares
outstanding
30,060
29,872
30,017
29,834
Weighted average diluted shares
outstanding
30,060
29,872
30,017
29,834
Tilly’s, Inc.
Consolidated Statements of
Cash Flows
(In thousands)
(unaudited)
Thirty-Nine Weeks
Ended
November 2,
2024
October 28,
2023
Cash flows from operating
activities
Net loss
$
(32,565
)
$
(13,940
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
9,586
9,547
Stock-based compensation expense
1,744
1,684
Impairment of assets
3,605
2,631
(Gain) loss on disposal of assets
(45
)
2
Gain on maturities of marketable
securities
(1,449
)
(1,156
)
Deferred income taxes
—
(4,732
)
Changes in operating assets and
liabilities:
Receivables
611
4,196
Merchandise inventories
(29,322
)
(20,636
)
Prepaid expenses and other assets
900
5,980
Accounts payable
18,047
11,033
Accrued expenses
(159
)
106
Accrued compensation and benefits
(1,775
)
2,407
Operating lease liabilities
(5,422
)
(4,545
)
Deferred revenue
(1,624
)
(2,583
)
Other liabilities
(335
)
(452
)
Net cash used in operating
activities
(38,203
)
(10,458
)
Cash flows from investing
activities
Purchases of marketable securities
(59,557
)
(88,146
)
Purchases of property and equipment
(6,678
)
(10,543
)
Proceeds from maturities of marketable
securities
83,500
80,000
Proceeds from sale of property and
equipment
24
9
Net cash provided by (used in)
investing activities
17,289
(18,680
)
Cash flows from financing
activities
Proceeds from exercise of stock
options
294
210
Taxes paid on short-swing profits
disgorgement payment
—
(173
)
Net cash provided by financing
activities
294
37
Change in cash and cash
equivalents
(20,620
)
(29,101
)
Cash and cash equivalents, beginning of
period
47,027
73,526
Cash and cash equivalents, end of
period
$
26,407
$
44,425
Tilly's, Inc.
Store Count and Square
Footage
Store Count at
Beginning of Quarter
New Stores Opened
During Quarter
Stores Permanently
Closed During Quarter
Store Count at End of
Quarter
Total Gross Square
Footage End of Quarter (in thousands)
2023 Q1
249
1
2
248
1,809
2023 Q2
248
—
2
246
1,792
2023 Q3
246
3
—
249
1,810
2023 Q4
249
3
4
248
1,801
2024 Q1
248
2
4
246
1,784
2024 Q2
246
1
—
247
1,791
2024 Q3
247
—
1
246
1,780
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241205990996/en/
Investor Relations Contact: Michael
Henry, Executive Vice President, Chief Financial Officer (949)
609-5599, ext. 17000 irelations@tillys.com
Tillys (NYSE:TLYS)
過去 株価チャート
から 11 2024 まで 12 2024
Tillys (NYSE:TLYS)
過去 株価チャート
から 12 2023 まで 12 2024
