Tilly's, Inc, a leading American retailer of clothing, accessories, and footwear, has reported a downturn in fiscal 2023 (FY23) with total net sales dropping 7.3 per cent to $623.1 million from $672.3 million the previous year. The decline was more pronounced in physical store sales, which fell by 8.6 per cent to $485.6 million, while e-commerce sales slightly decreased by 2.6 per cent to $137.5 million.

The downturn in sales led to a gross profit of $165.7 million, down from $202.7 million, with gross margin reducing to 26.6 per cent from 30.2 per cent of net sales. Despite a decrease in sales and profitability, the company managed to turn around its net income to $176.2 million, or $3.75 per diluted share, from a net loss of $133.1 million, or $2.79 per share, in the prior year, the company said in a media release.

The fourth quarter of fiscal 2023 (Q4 FY23) saw a 10.5 per cent decline in net sales to $764.8 million from $854.4 million in the same period last year, leading to a net loss of $20.6 million, or $0.69 loss per share. The company saw a slight improvement in its non-GAAP net income, which was $4.04 per diluted share for the year, up from $2.85 in the prior year, and $0.76 for the fourth quarter, compared to $0.41 in the same period last year.

"Our business currently faces many headwinds from the macro environment. Despite these headwinds, we are challenging ourselves to improve our business performance by carefully reconsidering everything we do," said Hezy Shaked, co-founder and interim president and chief executive officer. "We see opportunities for improvement, but we expect it may take some time to see the benefits from our efforts in this environment."

Fibre2Fashion News Desk (DP)

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