Tilly's, Inc. reported a significant decline in financial performance for the fiscal year ending February 1, 2025, with net sales of $569.5 million, down 8.6% from $623.1 million in the previous year. The decrease in sales was attributed to a comparable store sales decline of 8.0%, which reflects the challenges faced by the company in a competitive retail environment. The company's gross profit also fell to $149.7 million, representing 26.3% of net sales, compared to 26.6% in the prior year. Tilly's incurred an operating loss of $49.8 million, a stark contrast to the operating income of $11.2 million reported in fiscal 2023.
The company's operational metrics showed a decrease in the number of stores, with 240 locations at the end of fiscal 2024, down from 248 the previous year. Average net sales per store also declined to $1.8 million, down from $1.9 million in fiscal 2023. E-commerce sales, which accounted for 21.9% of total net sales, decreased by 9.3% to $124.7 million. The decline in both physical and online sales reflects broader economic pressures, including inflation and decreased consumer confidence, which have impacted discretionary spending.
In terms of strategic developments, Tilly's has focused on enhancing its e-commerce capabilities and improving inventory management. The company has invested in technology upgrades, including a new point-of-sale system and enhancements to its website and mobile app, aimed at providing a seamless shopping experience. Despite these efforts, the company anticipates the need for additional liquidity, potentially requiring borrowing under its credit facility if sales do not improve in fiscal 2025.
Looking ahead, Tilly's plans to open a limited number of new stores in existing markets while maintaining a disciplined approach to store openings. The company expects capital expenditures for fiscal 2025 to range between $5 million and $10 million, primarily for new store openings and technology upgrades. However, the outlook remains cautious, with management acknowledging the ongoing challenges posed by inflation and changing consumer behavior, which could further impact sales and profitability in the upcoming fiscal year.
About TILLY'S, INC.
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