Q3 2024 Tillys Inc Earnings Call Transcript
Key Points
- Tilly's Inc (TLYS) reported its first month of comparable net sales growth since February 2022 in fiscal August.
- E-commerce net sales increased by 4.9% for the comparable 13-week period, marking the best quarterly e-commerce comp sales result since the end of fiscal 2021.
- Store traffic increased for the second consecutive quarter, indicating positive effects from renewed marketing efforts and a new brand campaign.
- The company launched a new marketing sponsorship with the Los Angeles Chargers, focusing on community outreach and mental health awareness.
- Investments in business improvements, such as upgrading the website's search engine and relaunching the mobile app, are underway to enhance customer experience.
- Overall net sales decreased by 13.8% compared to the previous year, primarily due to the impact of the 53rd week in last year's retail calendar.
- Physical store net sales decreased by 16%, and comparable net sales for the 13-week period declined by 3.4%.
- Gross margin decreased to 25.9% from 29.3% last year, with buying, distribution, and occupancy costs deleveraging by 320 basis points.
- The company reported a pre-tax loss of $12.9 million, significantly higher than last year's pre-tax loss of $1.2 million.
- Net inventories increased by 11.8%, partly due to the decision to pull forward inventory receipts, which could pose a risk if sales do not improve.
Good day and welcome to the Tilly's third quarter, 2024 results conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Mr. Gar Jackson, Investor Relations. Please go ahead, sir.
Good afternoon and welcome to the Tilly's fiscal 2024 third-quarter earnings call. Michael Henry, Executive Vice President, Chief Financial Officer will discuss the company's business and operating results. And then he and Hezy Shaked, Co-Founder, Executive Chairman, President, and Chief Executive Officer will host a Q&A session with analysts.
For a copy of Tilly's earnings press release. Please visit the investor relations section of the company's website at Tillys dot from the same section shortly after the conclusion of the call, you will also be able to find a recorded replay of this call for the next 30 days. Certain forward-looking statements will be made during this call that reflect Philly's judgment and analysis only as of today,
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