US' Tilly's FY25 sales decline while comparable sales rise marginally

The gross profit improved to $164.5 million, or 29.7 per cent of net sales, compared with $149.7 million or 26.3 per cent in fiscal 2024. Meanwhile, Selling, general and administrative (SG&A) expenses declined to $183.8 million from $199.5 million, Tilly’s said in a press release.

The company’s operating loss narrowed to $19.3 million from $49.8 million in the previous year. Net loss also improved to $17.5 million, or $0.58 per share, compared with $46.2 million, or $1.54 per share, in fiscal 2024.

Meanwhile, in the fourth quarter (Q4) of FY25, the net sales reached $155.1 million, witnessing an increase of 5.3 per cent YoY, supported by strong comparable sales growth and improved margins.

while total comparable net sales across stores and e-commerce increased 10.1 per cent. Net sales from physical stores reached $112.2 million, up 3.6 per cent, while e-commerce sales totalled $43 million with comparable online sales rising 9.8 per cent.

The company operated 223 stores at the end of the quarter, down from 240 a year earlier. Despite the reduced store base, comparable store sales increased 10.3 per cent during the quarter. The gross profit improved significantly to $51.5 million, representing 33.2 per cent of net sales, compared with $38.3 million or 26 per cent of sales in the same quarter last year. Product margins expanded by 470 basis points, supported by higher initial markups and fewer markdowns as the company operated with leaner and more current inventory.

SG&A expenses declined to $48.9 million, or 31.5 per cent of net sales, from $52.4 million or 35.6 per cent a year earlier, mainly due to lower store payroll and related costs.

As a result, the company posted operating income of $2.6 million compared with an operating loss of $14.1 million in the prior-year quarter. Net income reached $2.9 million, or $0.1 per diluted share, compared with a net loss of $13.7 million, or $0.45 per share, a year earlier.

“Our positive comparable store net sales momentum accelerated in the fourth quarter of fiscal 2025 and produced our first profitable fourth quarter and full-year positive comparable sales since fiscal 2021,” said Nate Smith, president and CEO at Tilly’s adding, “Since turning positive in August, we have now produced seven consecutive months of comparable net sales growth, including February 2026 increasing by 20 per cent. We are off to a strong start to fiscal 2026 and we feel optimistic about our prospects for the year.”

Fibre2Fashion News Desk (SG)