Q2 2024 Tillys Inc Earnings Call Transcript
Key Points
- Second-quarter net sales were in the middle of the outlook range and breakeven earnings per share beat expectations.
- Improved product margins for the first two quarters of fiscal 2024 relative to last year.
- New brand marketing strategy and first-ever brand campaign launched to redefine purpose and connect with target customers.
- Positive response to the new campaign across digital platforms, indicating potential for stronger consumer affinity.
- Net sales from physical stores increased by 2%, and e-commerce net sales increased by 1.3%.
- Comparable net sales remained negative, with a 7.8% decrease for the 13-week period ended August 3, 2024.
- Total SG&A expenses increased to $50.8 million, up from $47 million last year.
- Pretax loss and net loss expected in the range of $11.6 million to $8.7 million for the third quarter of fiscal 2024.
- Challenges in improving sales results in the current consumer environment, with structural issues impacting performance.
- Significant increase in labor costs, particularly in California, with average hourly rates for store payroll 32% higher than in 2019.
Good day, and welcome to the Tilly's, Inc., second-quarter 2024 results conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Gar Jackson, Investor Relations. Please go ahead.
Good afternoon, and welcome to the Tilly's fiscal 2024 second-quarter earnings call. Michael Henry, Executive Vice President and Chief Financial Officer, will discuss the company's business and operating results. Then he and Hezy Shaked, Executive Chairman and Interim President and Chief Executive Officer, will host a Q&A session with analysts.
For a copy of Tilly's earnings press release, please visit the Investor Relations section of the company's website at tillys.com. From the same section, shortly after the conclusion of the call, you will also be able to find a recorded replay of this call for the next 30 days.
Certain forward-looking statements will be made during this call that reflect Tilly's judgment and analysis only as
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