By Katherine Hamilton

Tilly's shares hit a low after the company's sales declined and it said it's planning store closures.

The stock dropped 29% to $2.35 on Thursday, at one point hitting an all-time low of $2.25. Shares have lost 67% of their value over the past year.

Hezy Shaked, chief executive of the Irvine, Calif., clothing retailer, said fiscal fourth-quarter earnings were a disappointment.

Revenue for the most recent quarter fell to $147.3 million from $173 million. Analysts polled by FactSet had estimated $153.7 million. Tilly's expects first-quarter revenue of $105 million to $111 million, which would be a decrease of 3% to 8% from the previous year.

Tilly's is attempting to change its sales trajectory by updating its merchandising organization, improving inventory efficiency and cutting costs, Shaked said.

Along with making changes to its merchandising, Tilly's management is scrutinizing its store leases, corporate payroll and contracts with business partners to try to reduce costs, Chief Financial Officer Michael Henry said during a call Wednesday.

Shaked said his goal is for the number of unprofitable store closures to exceed new openings. Seven stores are set to close during the first half of this year, Henry said.

Henry said he expects there to be about 80 leases up for renegotiation this year.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

March 13, 2025 13:46 ET (17:46 GMT)

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