Net sales from physical stores in H1 FY24 reached $225.2 million, a decrease of $2.5 million, or 1.1 per cent, compared to $227.6 million last year. Comparable store net sales fell by 8.2 per cent, though physical store sales represented 80.8 per cent of total net sales this year, up from 80.3 per cent last year. E-commerce net sales also saw a decline, totalling $53.6 million, a 4.3 per cent decrease from $56.0 million in the prior year. E-commerce accounted for 19.2 per cent of total net sales this year, down slightly from 19.7 per cent last year, the company said in a media release.

Gross profit for the first half of fiscal 2024 was $74.2 million, or 26.6 per cent of net sales, an improvement from the $70.3 million, or 24.8 per cent of net sales, reported last year. However, the company saw an increase in selling, general, and administrative expenses, which rose to $95.9 million, or 34.4 per cent of net sales, compared to $90.2 million, or 31.8 per cent of net sales, last year. Operating losses widened, reaching $21.6 million, or 7.8 per cent of net sales, compared to an operating loss of $19.9 million, or 7.0 per cent of net sales, in H1 FY23. Net loss for H1 FY24 stood at $19.7 million, or $0.66 per share, compared to a net loss of $13.1 million, or $0.44 per share, in the prior year.

In the second quarter of fiscal 2024 (Q2 FY24), Tilly’s posted improved performance with total net sales of $162.9 million, an increase of 1.8 per cent from the $160.0 million recorded in Q2 FY23. Physical store net sales for the second quarter rose to $132.3 million, a 2.0 per cent increase from $129.8 million last year, though comparable store net sales declined by 7.9 per cent. E-commerce sales for Q2 FY24 also grew slightly, reaching $30.5 million, a 1.3 per cent rise compared to $30.2 million in the previous year.

Gross profit for Q2 FY24 was $49.9 million, or 30.7 per cent of net sales, up from $44.3 million, or 27.7 per cent of net sales, in the same quarter last year. However, selling, general, and administrative expenses increased to $50.8 million, or 31.2 per cent of net sales, compared to $47.0 million, or 29.4 per cent of net sales, in Q2 FY23. Tilly’s reduced its operating loss to $0.9 million, or 0.5 per cent of net sales, a significant improvement from the $2.7 million operating loss, or 1.7 per cent of net sales, reported last year.

The company also reported a near break-even net loss of $0.1 million, or $0.00 per share, for the second quarter of fiscal 2024, compared to a net loss of $1.1 million, or $0.04 per share, in the same quarter last year.

"While the macro environment remains challenging for our customer demographic, we believe that our new pricing strategies are gaining traction as evidenced by our second consecutive quarter of improved product margins, and that we are beginning to drive improved customer engagement through our refocused marketing efforts," said Hezy Shaked, co-founder and interim president and chief executive officer, Tilly's.

Fibre2Fashion News Desk (DP)