Apparel retailer Tillys Q3 net loss narrows, helped by lower costs

Tillys

03/12/2025 21:19

Overview

Tillys fiscal Q3 total net sales decreased 2.7%, but comparable net sales grew 2.0%

Gross profit for fiscal Q3 improved to 30.5% of net sales from 25.9% last year

Net loss for fiscal Q3 improved to $1.4 mln from $12.9 mln last year

Outlook

Company estimates Q4 net sales between $146 mln and $151 mln

Tillys expects Q4 comparable net sales to rise 4% to 8%

Company projects Q4 net loss between $5.6 mln and $3.5 mln

Tillys anticipates Q4 product margin improvement of 300 to 350 basis points

Result Drivers

PRODUCT MARGINS - Improved product margins due to higher initial markups and lower markdowns from reduced inventory levels

STORE COUNT REDUCTION - Reduced store count led to lower occupancy costs, aiding SG&A expense reduction

SG&A EXPENSES - Decrease in SG&A expenses due to lower store payroll, e-com fulfillment labor, and asset write-down charges

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
$139.59 mln
Q3 Net Income
-$1.41 mln
Q3 Gross Profit
$42.59 mln
Q3 Operating Income
-$1.92 mln
Q3 Pretax Profit
-$1.38 mln


Analyst Coverage

The one available analyst rating on the shares is "hold"

The average consensus recommendation for the apparel & accessories retailers peer group is "buy."

Wall Street's median 12-month price target for Tillys Inc is $2.25, about 53.1% above its December 2 closing price of $1.47

Press Release: ID:nBwSSBP4a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)