Tilly’s reports 2023 Holiday sales down 7.4% y/y to $139.7M

Tilly’s announced net sales results for the nine-week period ended December 30, 2023 in advance of its attendance and participation in the ICR Conference 2024 on January 8-9, 2024. “Condensed peaks of increased consumer activity over Black Friday weekend, just before Christmas and in the week following Christmas were more than offset by significant decreases in consumer activity outside of those event-driven peaks, producing a slightly softer holiday season for us overall than we originally anticipated,” commented Ed Thomas, President and CEO. “We anticipate ending fiscal 2023 with a strong cash position, a reasonable inventory level, and no debt as we continue to focus on opportunities to improve our business in fiscal 2024.” Total net sales of $139.7 million decreased by (7.4)% for the 2023 holiday period compared to $150.9 million for last year’s comparable nine-week holiday period ended December 31, 2022. Total comparable net sales, including both physical stores and e-commerce, decreased by (9.0)% during the 2023 holiday period compared to the 2022 holiday period. Comparable net sales of Footwear increased by a single-digit percentage, Girls and Mens apparel decreased by single-digit percentages, while Boys, Womens and Accessories decreased by double-digit percentages compared to the 2022 holiday period. Comparable net sales in physical stores decreased by (12.3)% during the 2023 holiday period compared to the 2022 holiday period. Comparable net sales in physical stores were single-digit negative in the Midwest, New England and the Northwest and double-digit negative elsewhere on a percentage basis compared to the 2022 holiday period. Net sales in physical stores represented 71.9% of total net sales during the 2023 holiday period compared to 74.4% of total net sales during the 2022 holiday period. E-commerce net sales increased by 1.6% during the 2023 holiday period compared to the 2022 holiday period. E-commerce net sales represented 28.1% of total net sales during the 2023 holiday period compared to 25.6% of total net sales during the 2022 holiday period. As of January 2, 2024, the company had approximately $129 million of cash and marketable securities and no debt outstanding.