Tilly's Q2: Sales decline but profitability improves

Tilly’s, Inc. announced its financial results for the second quarter and first half of fiscal 2025, showing signs of business stabilisation despite an overall decrease in sales. In the second quarter, total net sales were 151.3 million dollars, a 7.1 percent decrease from the previous year.

However, the company noted that its comparable net sales trend has improved each quarter since the end of fiscal 2024. This was reflected in a 4.5 percent decrease in total comparable net sales for the quarter, and a 0.9 percent increase for the month of August. The company's gross profit for the second quarter was 49.1 million dollars, or 32.5 percent of net sales, an increase from the 30.7 percent of net sales reported in the same quarter last year.

For the first half of fiscal 2025, total net sales were 258.9 million dollars, a 7.1 percent decrease, while net loss for the period was 19 million dollars, an improvement from the 19.7 million dollars in the first half of fiscal 2024. The company's store count decreased by 15 locations, from 247 to 232.

Tilly's expects to continue its positive momentum into the third quarter of fiscal 2025. The company projects net sales to be between 134 million dollars and 140 million dollars, with comparable net sales ranging from a 2 percent decrease to a 2 percent increase. Tilly's estimates a net loss of 7 million dollars to 10.5 million dollars for the quarter, or a net loss per share of 23 cents to 35 cents, which would be an improvement over the 43 cents net loss per share from last year's third quarter.

The company plans to open two new stores while closing four during the quarter, bringing the total store count to 230 by the end of the period.