Tilly's comparable sales rise 0.5 percent in FY16

Tilly’s total net sales for the fourth quarter were 160.2 million dollars, an increase of 0.7 percent from 159.1 million dollars last year. Comparable store sales, which include e-commerce sales, increased 0.1 percent compared to 0.9 percent in the fourth quarter last year. Total net sales for the fiscal year were 569 million dollars, 3.3 percent increase from 551 million dollars last year. Comparable store sales including e-commerce sales increased 0.5 percent against 1.2 percent rise in fiscal 2015.

“We finished fiscal 2016 with three consecutive quarters of year over year operating income growth and our first annual improvement in operating income of the last five years," said Ed Thomas, President and CEO of Tilly’s in a statement, adding, "Our strong balance sheet enabled us to reward shareholders with a 20 million dollars special dividend in February."

Fourth quarter and FY16 result highlights

Fourth quarter gross margin or gross profit as a percentage of net sales, decreased to 30.6 percent from 31.4 percent last year. The company said, this 80 basis point decrease in gross margin was primarily attributable to a 60 basis point decline in product margins from increased markdowns and a 20 basis point increase in buying, distribution and occupancy costs.

Gross margin, or gross profit as a percentage of net sales, was 29.6 percent compared to 30.4 percent last year. This 80 basis point decrease, the company said, was primarily attributable to a decline in product margins as a result of increased markdowns.

Operating income was 10.4 million dollars or 6.5 percent of net sales compared to 9.5 million dollars or 6 percent of net sales, last year. This 50 basis point increase in operating margin, the company said, was primarily attributable to the reductions in SG&A expenses. Net income was 6.3 million dollars or 0.22 dollar per diluted share, compared to 2.9 million dollars or 0.10 dollar per diluted share, last year.

Operating income for the year was 19.3 million dollars, an increase of 1.2 million dollars from 18.1 million dollars last year. Operating margin improved 10 basis points to 3.4 percent of net sales compared 3.3 percent last year. Net income was 11.4 million dollars or 0.40 dollars per diluted share compared to 7.5 million dollars or 0.27 dollar, last year.

Tilly’s expects first quarter comparable sales to decline high single-digit

The company said its quarter-to-date comparable store sales, including e-commerce, have decreased by a high single-digit percentage due to a later Easter versus the comparable prior year period and significant weather issues in its heritage markets of California, Arizona and Nevada during February.

As a result, the company expects its first quarter comparable store sales to decrease by a low to mid single-digit percentage, operating loss to be in the range of 3 million dollars to 7 million dollars, and loss per share to be in the range of 0.07 dollar to 0.15 dollar. This compares to a loss of 0.10 dollar for the first quarter of fiscal 2016.

Picture:Tilly's website