US' Tilly's reports gross profit of $202.8 mn in FY22

Total comparable net sales, including physical stores and e-commerce, decreased by 14.6 per cent in FY22, the company said in a press release.

The net sales from physical stores in FY22 were $531.1 million, a decrease of $78.6 million or 12.9 per cent, compared to the previous year. Meanwhile, net sales from e-commerce were $141.1 million, a decrease of $24.8 million or 15 per cent, compared to the previous year.

Tilly’s product margins in FY22 declined by 270 basis points primarily due to an increased markdown rate compared to last year, during which the company experienced record full price selling with a low markdown rate. Furthermore, the selling, general, and administrative expenses were $191.3 million, or 28.5 per cent of net sales, compared to $189.1 million, or 24.4 per cent of net sales, last year.

Operating income for FY22 was $11.5 million, or 1.7 per cent of net sales, compared to $87.6 million, or 11.3 per cent of net sales, last year. Net income for the fiscal was $10.1 million, or $0.33 per diluted share, compared to $64.2 million, or $2.06 per diluted share, last year.

In the fourth quarter (Q4) of fiscal 2022, Tilly's total net sales were $180.4 million, a decrease of $24.1 million or 11.8 per cent compared to the fourth quarter of fiscal 2021. Net sales from physical stores were $135 million, a decrease of $17.1 million or 11.3 per cent, while net sales from e-commerce were $45.3 million, a decrease of $7 million or 13.4 per cent, compared to the same period last year.

Gross profit in Q4 FY22 was $52.4 million, or 29.1 per cent of net sales, compared to $70.4 million, or 34.4 per cent of net sales in Q4 FY21. Selling, general, and administrative expenses were $53.5 million, or 29.7 per cent of net sales, compared to $53.1 million, or 25.9 per cent of net sales, last year.

Operating loss in Q4 FY22 was $1.1 million, or 0.6 per cent of net sales, compared to operating income of $17.3 million, or 8.5 per cent of net sales, in Q4 FY21, due to the combined impact of the factors noted above.

Net income in Q4 FY22 was $0.3 million, or $0.01 per diluted share, compared to net income of $12.1 million, or $0.38 per diluted share, in Q4 FY21, the release added.

For Q1 FY23, Tilly's currently estimates that net sales will be in the range of approximately $122 million to $133 million, translating to an estimated comparable net sales decrease of approximately 11 per cent to 18.5 per cent compared to the first quarter of fiscal 2022. The company currently estimates its selling, general, and administrative expenses for Q1 FY23 to be in the range of approximately $43 million to $44 million and pre-tax loss to be in the range of approximately $11 million to $16.7 million.

Fibre2Fashion News Desk (DP)