Tilly's Q1 sales decline 7.1 percent, net loss widens

Tilly’s Tilly's first quarter results, which ended on May 3, 2025, show a decrease in comparable net sales compared to the previous year.

For the first quarter, total net sales reached 107.6 million dollars, a 7.1 percent decrease from the first quarter of fiscal 2024. Total comparable net sales also decreased by 7 percent, encompassing both physical stores and e-commerce.

However, this figure represents a 4.2 percentage point improvement compared to the 11.2 percent comparable net sales decrease seen in the fourth quarter of fiscal 2024.

President and CEO Hezy Shaked noted that there's a notable sequential improvement in trend from the fourth quarter of fiscal 2024. Shaked said that May's performance, marking the start of the second quarter, further reinforced this improving trend. "We believe our merchandise assortment is on trend, and we are encouraged by these signs that our business may be starting to stabilise. We continue to seek opportunities to accelerate progress toward improving our business," commented Shaked.

The company’s net sales from physical stores were 85.9 million dollars, down 7.4 percent, while e-commerce net sales decreased by 5.8 percent to 21.7 million dollars. Tilly's ended the quarter with 238 stores, a reduction from 246 stores in the prior year.

Gross profit for the quarter was 21.3 million dollars, or 19.8 percent of net sales, down from 24.3 million dollars (21 percent of net sales) last year. The company reported an operating loss of 22.7 million dollars, or 21.1 percent of net sales, compared to a 20.8 million dollars loss last year. The net loss for the quarter widened to 22.2 million dollars or 74 cents per share.

Total comparable net sales for the period ended May 31, 2025 decreased by 2.2 percent relative to the comparable period of last year. Looking ahead, Tilly's provided an outlook for the second quarter of fiscal 2025, projecting net sales in the range of approximately 150 million dollars to 158 million dollars. This translates to an estimated comparable net sales range from a 5 percent decrease to flat compared to the previous year.

The company anticipates a net loss of approximately 2.7 million dollars to net income of approximately 2 million dollars, with per-share results ranging from a net loss of 9 cents to net income of 7 cents. Tilly's also plans to continue its store optimization strategy, expecting to end the second quarter with 232 stores, with further potential closures throughout the fiscal year.