Tilly’s(TLYS)2025-06-04 20:23Financial Performance - Total net sales for Q1 fiscal 2025 were $107.6 million, a decrease of 7.1% compared to Q1 fiscal 2024[3] - Comparable net sales decreased by 7.0%, with a sequential improvement of 4.2 comp points from Q4 fiscal 2024's decrease of 11.2%[3] - Gross profit was $21.3 million, or 19.8% of net sales, down from 21.0% in the previous year[3] - SG&A expenses were $44.0 million, or 40.9% of net sales, compared to 38.9% last year, reflecting a deleverage of 190 basis points[3] - Operating loss for the quarter was $22.7 million, or 21.1% of net sales, compared to $20.8 million, or 17.9% of net sales, in the prior year[3] - Net loss was $22.2 million, or $0.74 per share, compared to a net loss of $19.6 million, or $0.65 per share, last year[4] - Tilly's, Inc. reported a net loss of $22,152,000 for the thirteen weeks ended May 3, 2025, compared to a net loss of $19,621,000 for the same period in 2024, reflecting an increase in losses of approximately 8%[16] Inventory and Store Management - Total inventories decreased by 3.8% as of May 3, 2025, compared to the same date last year[5] - The company expects to end Q2 with a total store count of 232, down from 247 at the end of the previous year's second quarter[8] - Tilly's opened 1 new store and permanently closed 3 stores in Q1 2025, resulting in a total store count of 238 at the end of the quarter[18] - The total gross square footage of Tilly's stores decreased to 1,707,000 square feet by the end of Q1 2025, down from 1,730,000 square feet at the end of Q4 2024[18] - The company experienced a significant decrease in merchandise inventories, with a reduction of $6,394,000 compared to a decrease of $15,376,000 in the same quarter of 2024, showing improved inventory management[16] Cash Flow and Liquidity - The company generated net cash used in operating activities of $8,119,000, significantly improved from $25,690,000 in the prior year, indicating a reduction in cash outflow of about 68%[16] - Cash and cash equivalents at the end of the period increased to $27,231,000 from $19,880,000 year-over-year, representing a growth of approximately 37%[16] - Total liquidity is projected to be approximately $106 million to $111 million, with no debt and a cash position of $43 million to $48 million[8] - Tilly's had a cash inflow of $14,294,000 from investing activities, contrasting with a cash outflow of $1,610,000 in the same period last year, marking a substantial turnaround[16] Expenses and Asset Management - The company recorded depreciation and amortization expenses of $2,828,000, a decrease from $3,095,000 in the same quarter of the previous year, reflecting a reduction of about 9%[16] - The company reported stock-based compensation expense of $440,000, down from $566,000 in the same quarter of the previous year, reflecting a decrease of approximately 22%[16] - Tilly's reported a gain on the disposal of assets of $15,000, compared to a loss of $16,000 in the prior year, indicating a positive shift in asset management[16]