Tilly’s, Inc. net sales results for the nine-week holiday selling period ended December 30, 2023, in advance of its attendance and participation in the ICR Conference 2024 on January 8-9, 2024.
Total net sales decreased 7.4 percent to $139.7 million for the 2023 Holiday period compared to $150.9 million for the corresponding nine-week holiday period in the prior year.
“Condensed peaks of increased consumer activity over Black Friday weekend, just before Christmas, and in the week following Christmas, were more than offset by significant decreases in consumer activity outside of those event-driven peaks, producing a slightly softer holiday season for us overall than we originally anticipated,” commented Ed Thomas, president and CEO, Tilly’s, Inc. “We anticipate ending fiscal 2023 with a strong cash position, a reasonable inventory level, and no debt as we continue to focus on opportunities to improve our business in fiscal 2024.”
The retailer said in a release that total comparable net sales, including physical stores and e-commerce, decreased 9.0 percent year-over-year during the 2023 holiday period. Comparable net footwear sales reportedly increased in single digits, girl’s and men’s apparel decreased in single digits, while boys, women’s and accessories decreased in double digits compared to the 2022 holiday period.
Comparable net sales in physical stores reportedly decreased by 12.3 percent during the 2023 holiday period compared to the 2022 holiday period. Comparable net sales in physical stores were down in single digits in the Midwest, New England and the Northwest and down in double digits elsewhere on a percentage basis compared to the 2022 holiday period.
Net sales in physical stores reportedly represented 71.9 percent of total net sales during the 2023 holiday period compared to 74.4 percent of total net sales during the 2022 holiday period.
E-commerce net sales increased by 1.6 percent year-over-year for the holiday period. E-commerce net sales represented 28.1 percent of total net sales during the 2023 holiday period compared to 25.6 percent of total net sales during the 2022 holiday period.
As of January 2, 2024, the company had approximately $129 million of cash and marketable securities and no debt outstanding.
Fiscal 2023 Fourth Quarter Outlook Update
Based on the company’s net sales results for the 2023 holiday period and historical trends for the remainder of the quarter, TLYS now expects its fiscal 2023 fourth-quarter net sales to be in the range of approximately $169 million to $172 million and its loss per share to be in the range of 20 cents to 24 cents.
The company expects to end fiscal 2023 with 248 total stores, total cash and marketable securities of approximately $90 million, reflecting the normal seasonal fluctuation of such balances and no debt outstanding.
Tilly’s said in the release that the scope and nature of the impacts of current market conditions on the company’s business continue to evolve. As a result, they said 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 2023 holiday period. In addition, Tilly’s said the preceding information does not reflect the full financial results for the 2023 holiday period.
The company’s financial results for the fiscal 2023 fourth quarter and full fiscal year ending February 3, 2024, 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 2023 financial statements.
The company expects to report its results for the fiscal 2023 fourth quarter and full fiscal year on or about March 14, 2024.
Image courtesy Tilly’s
