Tilly's, Inc. (NYSE: TLYS) Q1 2025 Earnings Call | 6/4/2025

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Tilly's, Inc. (NYSE: TLYS) reported Q1 2025 results on June 4, 2025, with total net sales of $107.6 million—a 7.1% year-over-year decline, as both physical store sales ($85.9 million, down 7.4%) and e-commerce sales ($21.7 million, down 5.8%) fell amid continued retail headwinds. Comparable net sales also decreased 7%, but this marked a 4.2 percentage point improvement from the 11.2% drop in Q4 2024, and May saw further sequential progress with comps down just 2.2%. Gross profit was $21.3 million, or 19.8% of net sales, down from 21.0% last year, impacted by higher inventory valuation reserves. Product margins improved by 40 basis points thanks to better initial markups and pricing strategies. The company posted a net loss of $22.2 million, or $0.74 per share, missing analyst expectations and widening from a $19.6 million loss ($0.65 per share) a year ago. Tilly’s ended Q1 with 238 stores (down 8 year-over-year) and plans to close at least 7 more in Q2, with up to 15 additional closures possible by year-end. Despite these challenges, Tilly’s remains debt-free with $92.6 million in liquidity and inventory levels 3.8% lower than last year, supporting financial stability and flexibility. The company’s TikTok shop, launched in mid-April, has outperformed daily Amazon order volumes, and customer engagement has been strengthened through high-profile live events. Management cited improved merchandise performance, especially in the junior line, and expressed cautious optimism for the back-to-school season, which historically drives the strongest sales volume. Outlook: Q2 2025 net sales guidance: $150–$158 million; comparable net sales expected to range from a 5% decrease to flat year-over-year Net loss projected at $2.7 million to net income of $2 million (–$0.09 to +$0.07 per share) Continued focus on digital innovation, merchandise optimization, and cost discipline as store optimization continues CEO Hezy Shaked emphasized the sequential improvement in sales trends, ongoing merchandise enhancements, and the company’s commitment to stabilizing and growing the business despite a challenging retail environment. About Inside Ticker: For more expert analysis and real-time updates on Tilly's, Inc. (NYSE: TLYS) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #Tillys #TLYS #EarningsCall #Q12025 #RetailStocks #Apparel #DigitalEngagement #StockMarket #Investing #InsideTicker