Q2 2025 Tillys Inc Earnings Call Transcript
Key Points
- Tilly's Inc (TLYS) reported a profitable quarter with earnings per share of $0.10, marking the first profitable quarter since fiscal 2022.
- The company achieved significant improvements in product margins and reduced inventory levels, contributing to better financial performance.
- Gross margin improved by 180 basis points to 32.5% of net sales, driven by higher initial markups and lower markdowns.
- Tilly's Inc (TLYS) successfully reduced SG&A expenses by $4.4 million compared to the previous year, indicating effective cost management.
- The company ended the second quarter with a strong liquidity position of $114 million and maintained a debt-free balance sheet.
- Total net sales decreased by 7.1% compared to the previous year, indicating challenges in revenue growth.
- Comparable net sales, including both physical stores and e-commerce, decreased by 4.5%, reflecting ongoing sales pressures.
- E-commerce net sales decreased by 6.6%, partly due to a distribution decision by a third-party brand affecting sales.
- The company closed 15 stores over the past year, reducing its total store count by 6.1%, which may impact future sales opportunities.
- Tilly's Inc (TLYS) provided a cautious outlook for the third quarter, anticipating a potential net loss and a decrease in net sales.
Good day, and welcome to the Tilly's second-quarter 2025 earnings conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Gar Jackson. Please go ahead.
Good afternoon, and welcome to the Tilly's Fiscal 2025 second quarter earnings call. Hezy Shaked, Co-Founder and Executive Chairman; Nate Smith, President and Chief Executive Officer; and Michael Henry, Executive Vice President and Chief Financial Officer, will provide some prepared remarks and then host a Q&A session.
For a copy of Tilly's earnings press release, please visit the Investor Relations section of the company's website at tillys.com. 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 Tilly's judgment and analysis only as of today, September 3, 2025, and actual results may
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