The following is a summary of the Tilly's, Inc. (TLYS) Q4 2023 Earnings Call Transcript:
Financial Performance:
Tilly's reported Q4 net sales of $173 million, a decrease of 4.1%. On a comparable basis, net sales decreased by 11.8% from physical stores and increased by 0.3% from e-commerce.
The gross margin was 27% of net sales, down from 29% in the previous year due to higher markdowns required to manage inventory.
The operating loss increased to $8.5 million or 4.9% of net sales. The net loss for the quarter was $20.6 million or $0.69 per share, largely owing to a noncash deferred tax asset valuation allowance charge.
Business Progress:
Tilly's aims to drive sales increases at healthy product margins and is overhauling its product range, preparing to launch several new brands throughout the year.
The company plans to improve marketing efforts, introduce a new brand campaign, and reintroduce in-store events to boost customer interaction and store traffic.
Tilly's intends to deliberate on new store openings, with a plan to open five new stores in fiscal 2024. Capital expenditures for the fiscal year 2024 include upgrading warehouse management systems, investing in markdown optimization, new merchandise allocation tools, and ongoing IT infrastructure.
More details: Tilly's IR
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