Tilly’s, Inc. saw total 2022 holiday period net sales decrease 12.9 percent to $150.9 million for the nine-week period ended December 31, 2022 compared to $173.3 million for last year’s comparable nine-week holiday period.
Total comparable net sales, including both physical stores and e-commerce, decreased by 14.4 percent for the 2022 holiday period compared to an increase of 14.1 percent for the 2021 holiday period. Total comparable net sales increased by 0.2 percent relative to the comparable period of pre-pandemic fiscal 2019.
Comparable net sales in physical stores decreased by 15.3 percent for the 2022 holiday period compared to an increase of 23.2 percent during the 2021 holiday period. Comparable net sales in physical stores decreased by double-digit percentages in each of our major geographic markets compared to the 2021 holiday period. Net sales in physical stores represented 74.4 percent of total net sales for the 2022 holiday period compared to 74.5 percent of total net sales during the 2021 holiday period. Comparable net sales in physical stores decreased by 8.9 percent relative to the comparable period of pre-pandemic fiscal 2019.
E-commerce net sales decreased by 12.8 percent for the 2022 holiday period compared to a decrease of 5.7 percent during the 2021 holiday period. E-commerce net sales represented 25.6 percent of total net sales for the 2022 holiday period compared to 25.5 percent of total net sales during the 2021 holiday period. E-commerce net sales increased by 37.3 percent relative to the comparable period of pre-pandemic fiscal 2019.
The company believes these results were negatively impacted by this year’s inflationary environment compared to much more favorable market conditions during the 2021 holiday period resulting from several pandemic-related factors.
”We believe this year’s inflationary environment negatively impacted our customers’ spending and our results during the 2022 holiday period, particularly when compared to 2021’s post-pandemic record-setting holiday period,” commented Ed Thomas, company president and CEO. “Despite a tougher holiday season this year, we anticipate ending fiscal 2022 with a healthy, debt-free balance sheet and well-managed inventory.”
Fiscal 2022 Fourth Quarter Outlook Update
Based on the company’s net sales results for the 2022 holiday period and recent historical trends for the fiscal month of January, the company now expects its fiscal 2022 fourth-quarter net sales to be in the range of approximately $178 million to $180 million and its loss per share to be in the range of one cent to 4 cents.
TLYS expects to end fiscal 2022 with 249 total stores, total cash and marketable securities of approximately $110 million, and reduced inventory per square foot compared to the end of fiscal 2021.
As of January 3, 2023, the company had $145.9 million of cash and marketable securities and no debt outstanding.
The company said that the scope and nature of the impacts of current market conditions on the company’s business continue to evolve. As a result, there can be no guarantee that the company’s financial results through the remainder of the fourth quarter will remain consistent with those of the 2022 holiday period. In addition, the foregoing information does not reflect the full financial results for the 2022 holiday period. The company’s actual financial results for the fiscal 2022 fourth quarter and full fiscal year ending January 28, 2023, are subject to the completion of the period, the finalization of its normal quarter-end and year-end accounting procedures, and the audit of its fiscal 2022 financial statements. The company currently expects to report its actual results for the fiscal 2022 fourth quarter and full fiscal year on or about March 9, 2023.
Photo courtesy Tilly’s
