Clothing retailer Tilly’s swung to a net loss of $34.5 million in the last fiscal year, attributed to lower sales amid macroeconomic challenges.
The company’s net sales fell 7.3 per cent to $623.1 million as physical stores’ net sales declined 8.6 per cent to $623.1 million while e-commerce sales slid 2.6 per cent to $137.5 million.
The company ended the year with 247 stores.
“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 Tilly’s co-founder, interim president, and CEO Hezy Shaked.
“We see opportunities for improvement, but we expect it may take some time to see the benefits from our efforts in this environment.”
Shaked took the executive role in January, following the retirement of Ed Thomas.
For this fiscal first quarter, Tilly’s forecasts net sales to decline 14 per cent to 7 per cent to $109 million to $119 million.
The company expects the full fiscal year’s capital expenditure to not exceed $15 million, mainly destined for the construction of five new stores and continued upgrades to certain distribution and information technology systems.
