Tilly's, Inc. (TLYS) Q2 2025 Earnings Call Transcript
Total net sales $151.3 million, a decrease of 7.1% year-over-year. The decrease was attributed to a net decrease of 15 stores (6.1%) and a decline in both physical store and e-commerce sales.
Comparable net sales Decreased by 4.5% year-over-year. This includes a 7.3% decrease in physical store sales and a 6.6% decrease in e-commerce sales. The decline was due to reduced store count and lower sales performance.
Gross margin Improved by 180 basis points to 32.5% of net sales compared to 30.7% last year. The improvement was driven by higher initial markups and lower markdowns due to reduced, more current inventory.
Product margins Improved by 210 basis points year-over-year. This was primarily due to higher initial markups and lower markdowns.
SG&A expenses $46.4 million, a decrease of $4.4 million year-over-year. The reduction was due to lower store payroll and benefits, reduced e-commerce fulfillment labor, and lower corporate payroll expenses.
Pretax income $3.1 million or 2.1% of net sales, compared to a pretax loss of $73,000 last year. The improvement was due to higher gross margins and reduced SG&A expenses.
Net income $3.2 million or $0.10 per diluted share, compared to a net loss of $69,000 last year. The improvement was driven by higher gross margins and cost reductions.
Balance sheet inventory 14.5% lower than the end of last year's second quarter. Inventory aging was also more current, contributing to improved margins.
Total liquidity $114 million, comprised of $51 million in cash and $63 million in undrawn borrowing capacity. The company remained debt-free.
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Purcell & Lefkowitz Investigates Tilly's Board Actions for Shareholder Rights
- Investigation Launched: Purcell & Lefkowitz LLP has announced an investigation into Tilly's, Inc. (NYSE:TLYS) to determine whether the company's directors breached their fiduciary duties in recent corporate actions, potentially impacting shareholder rights.
- Shareholder Rights Protection: The investigation focuses on safeguarding Tilly's shareholders' interests, with the law firm offering free consultations to help shareholders understand their rights and options, demonstrating a commitment to investor advocacy.
- Legal Service Commitment: Purcell & Lefkowitz LLP specializes in representing shareholders nationwide against securities fraud and other corporate misconduct, highlighting its expertise and dedication in the legal field.
- Transparent Contact Information: The law firm provides detailed contact information, including email and phone numbers, ensuring shareholders can easily access information and legal advice, thereby enhancing customer service accessibility.
Tilly's, Inc. Under Investigation for Potential Breach of Fiduciary Duties
- Shareholder Investigation Initiated: Purcell & Lefkowitz LLP is investigating Tilly's, Inc. to determine whether the board of directors breached their fiduciary duties in recent corporate actions, which could impact shareholder rights and corporate governance.
- Legal Support Offered: The firm provides free consultations for Tilly's shareholders, emphasizing its commitment to protecting investor rights, which may attract more shareholder attention and participation in the investigation, potentially affecting the company's reputation.
- Potential Consequences Analysis: Should the investigation confirm any misconduct by the board, it could lead to legal actions and liability, thereby impacting Tilly's financial condition and market confidence.
- Corporate Governance Risks: This investigation highlights potential risks in Tilly's corporate governance, possibly prompting shareholders to demand greater transparency and accountability from the board's decision-making processes.
Tilly's: Overview of Fiscal Q3 Earnings
Financial Performance: Tilly's Inc. reported a loss of $1.4 million in its fiscal third quarter, equating to a loss of 5 cents per share.
Revenue Details: The company generated revenue of $139.6 million during the same period and anticipates revenue between $146 million and $151 million for the upcoming quarter ending in January.
Tilly's Reports 2% Comparable Net Sales Growth in Q3, Signaling Recovery
- Sales Growth Recovery: Tilly's reported total net sales of $139.6 million in Q3, reflecting a 2.7% decline overall, yet a 2% increase in comparable net sales indicates the first growth since Q4 of fiscal 2021, suggesting a strengthening recovery momentum for the company.
- Store Performance Improvement: Comparable store sales increased by 5.3% despite a reduction in total store count to 230, down 16 from last year, demonstrating positive progress in optimizing store layouts and enhancing sales efficiency.
- Gross Margin Enhancement: The gross profit for Q3 reached $42.6 million, or 30.5% of net sales, up from 25.9% last year, with a 390 basis point improvement primarily driven by higher initial markups and lower markdowns, showcasing successful cost control and inventory management.
- Significant Net Loss Reduction: The net loss for Q3 narrowed to $1.4 million, or $0.05 per share, compared to a loss of $12.9 million and $0.43 per share last year, reflecting a $11.5 million improvement, indicative of ongoing efforts in operational efficiency and cost management.
Tilly's (TLYS) Posts Q3 Loss but Exceeds Revenue Projections
Quarterly Performance: Tilly's reported a quarterly loss of $0.05 per share, significantly better than the expected loss of $0.30, and an improvement from a loss of $0.43 per share a year ago, marking an earnings surprise of +83.33%.
Revenue Insights: The company generated revenues of $139.59 million, exceeding the Zacks Consensus Estimate by 1.96%, although this was a decline from $143.44 million in the same quarter last year.
Stock Outlook: Tilly's shares have dropped approximately 65.4% year-to-date, and the stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market.
Industry Context: The Retail - Apparel and Shoes industry is performing well, ranking in the top 30% of Zacks industries, which could influence Tilly's stock performance moving forward.
SFIX Reports Smaller-Than-Expected Q4 Loss, AI Investments Enhance Engagement
Financial Performance: Stitch Fix reported a narrower adjusted loss of 7 cents per share and net revenues of $311.2 million for Q4 fiscal 2025, surpassing estimates despite a 2.6% decline from the previous year. Active clients decreased by 7.9%, but revenue per active client grew for the sixth consecutive quarter.
Strategic Developments: The company's transformation strategy, including AI investments and enhanced product offerings, has led to increased engagement and a 12% rise in average order value. For fiscal 2026, Stitch Fix anticipates modest revenue growth and positive free cash flow, with projected revenues between $1.28 billion and $1.33 billion.
Purcell & Lefkowitz Investigates Tilly's Board Actions for Shareholder Rights
- Investigation Launched: Purcell & Lefkowitz LLP has announced an investigation into Tilly's, Inc. (NYSE:TLYS) to determine whether the company's directors breached their fiduciary duties in recent corporate actions, potentially impacting shareholder rights.
- Shareholder Rights Protection: The investigation focuses on safeguarding Tilly's shareholders' interests, with the law firm offering free consultations to help shareholders understand their rights and options, demonstrating a commitment to investor advocacy.
- Legal Service Commitment: Purcell & Lefkowitz LLP specializes in representing shareholders nationwide against securities fraud and other corporate misconduct, highlighting its expertise and dedication in the legal field.
- Transparent Contact Information: The law firm provides detailed contact information, including email and phone numbers, ensuring shareholders can easily access information and legal advice, thereby enhancing customer service accessibility.
Tilly's, Inc. Under Investigation for Potential Breach of Fiduciary Duties
- Shareholder Investigation Initiated: Purcell & Lefkowitz LLP is investigating Tilly's, Inc. to determine whether the board of directors breached their fiduciary duties in recent corporate actions, which could impact shareholder rights and corporate governance.
- Legal Support Offered: The firm provides free consultations for Tilly's shareholders, emphasizing its commitment to protecting investor rights, which may attract more shareholder attention and participation in the investigation, potentially affecting the company's reputation.
- Potential Consequences Analysis: Should the investigation confirm any misconduct by the board, it could lead to legal actions and liability, thereby impacting Tilly's financial condition and market confidence.
- Corporate Governance Risks: This investigation highlights potential risks in Tilly's corporate governance, possibly prompting shareholders to demand greater transparency and accountability from the board's decision-making processes.
Tilly's: Overview of Fiscal Q3 Earnings
Financial Performance: Tilly's Inc. reported a loss of $1.4 million in its fiscal third quarter, equating to a loss of 5 cents per share.
Revenue Details: The company generated revenue of $139.6 million during the same period and anticipates revenue between $146 million and $151 million for the upcoming quarter ending in January.
Tilly's Reports 2% Comparable Net Sales Growth in Q3, Signaling Recovery
- Sales Growth Recovery: Tilly's reported total net sales of $139.6 million in Q3, reflecting a 2.7% decline overall, yet a 2% increase in comparable net sales indicates the first growth since Q4 of fiscal 2021, suggesting a strengthening recovery momentum for the company.
- Store Performance Improvement: Comparable store sales increased by 5.3% despite a reduction in total store count to 230, down 16 from last year, demonstrating positive progress in optimizing store layouts and enhancing sales efficiency.
- Gross Margin Enhancement: The gross profit for Q3 reached $42.6 million, or 30.5% of net sales, up from 25.9% last year, with a 390 basis point improvement primarily driven by higher initial markups and lower markdowns, showcasing successful cost control and inventory management.
- Significant Net Loss Reduction: The net loss for Q3 narrowed to $1.4 million, or $0.05 per share, compared to a loss of $12.9 million and $0.43 per share last year, reflecting a $11.5 million improvement, indicative of ongoing efforts in operational efficiency and cost management.
Tilly's (TLYS) Posts Q3 Loss but Exceeds Revenue Projections
Quarterly Performance: Tilly's reported a quarterly loss of $0.05 per share, significantly better than the expected loss of $0.30, and an improvement from a loss of $0.43 per share a year ago, marking an earnings surprise of +83.33%.
Revenue Insights: The company generated revenues of $139.59 million, exceeding the Zacks Consensus Estimate by 1.96%, although this was a decline from $143.44 million in the same quarter last year.
Stock Outlook: Tilly's shares have dropped approximately 65.4% year-to-date, and the stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market.
Industry Context: The Retail - Apparel and Shoes industry is performing well, ranking in the top 30% of Zacks industries, which could influence Tilly's stock performance moving forward.
SFIX Reports Smaller-Than-Expected Q4 Loss, AI Investments Enhance Engagement
Financial Performance: Stitch Fix reported a narrower adjusted loss of 7 cents per share and net revenues of $311.2 million for Q4 fiscal 2025, surpassing estimates despite a 2.6% decline from the previous year. Active clients decreased by 7.9%, but revenue per active client grew for the sixth consecutive quarter.
Strategic Developments: The company's transformation strategy, including AI investments and enhanced product offerings, has led to increased engagement and a 12% rise in average order value. For fiscal 2026, Stitch Fix anticipates modest revenue growth and positive free cash flow, with projected revenues between $1.28 billion and $1.33 billion.
