Tilly’s (TLYS) investor relations material

Executive summary

• Achieved third consecutive quarter of double-digit comparable sales growth, with Q2 comparable sales up 12.1% and net sales rising 8.1% year-over-year to $163.5 million.

• Returned to profitability on a trailing four quarters and year-to-date basis, with Q2 net income of $8.4 million ($0.27 per diluted share), up from $3.2 million ($0.10 per share) last year.

• E-commerce net sales grew 20.9% year-over-year, now representing 21.1% of total sales.

• Gross margin improved by 300 basis points to 35.5%, with product margins up 140 basis points.

• Five consecutive quarters of year-over-year profit improvement, positioning for first profitable fiscal year since 2022.

Financial highlights

• Q2 net sales were $163.5 million, up 8.1% year-over-year; comparable net sales up 12.1%.

• Q2 net income was $8.4 million ($0.27 per diluted share), up from $3.2 million ($0.10 per share) last year.

• First half net sales increased 11.3% to $288.2 million; comparable net sales up 16.5%.

• E-commerce net sales grew 20.9%, now 21.1% of total sales.

• Ended Q2 with $62.2 million in cash/investments and no debt; total liquidity at $125.5 million including undrawn credit.

Outlook and guidance

• Q3 net sales expected at $150–$155 million, with comparable sales growth of 10–14%.

• Q3 net income guidance: $2.2–$3.7 million ($0.07–$0.12 per diluted share), compared to a $1.4 million loss last year.

• Expect to end Q3 with 220 stores, a net decrease of 10–12 stores year-over-year.

• Total liquidity projected at $125 million or more by Q3 end.

• Management anticipates continued inflationary pressures on costs and consumer spending.