Tilly’s FY15 net sales increase 6.3 percent

Tilly’s total net sales for the fourth quarter increased 4.1percent to 159 million dollars from 153 million dollars. Comparable store sales, which include e-commerce sales, decreased 0.9 percent, however gross profit increased 1.9 percent to 50 million dollars from 49 million dollars. Total net sales for the year 2015 increased 6.3 percent to 551 million dollars, which include e-commerce sales rise of 1.2 percent. Gross profit increased 7.5 percent to 167 million dollars.

“Our fourth quarter comparable store sales results were slightly better than our outlook and we ended the quarter with clean and current inventories," stated Ed Thomas, President and Chief Executive Officer, adding, "After my first five months back at Tilly's, I am even more excited about the opportunities to improve the business for the long-term and look forward to making progress during fiscal 2016.”

Fourth quarter and FY5 results overview

Gross margin, or gross profit as a percentage of net sales for the fourth quarter, decreased to 31.4 percent from 32.1 percent. The company said that 70 basis point decrease in gross margin was primarily attributable to lower product margins as a result of increased markdowns. Operating income was 9.5 million dollars, or 6 percent of net sales, a 130 basis point decrease over the last year’s fourth quarter.

Net income was 2.9 million dollars, or 0.10 dollar per diluted share, compared to 7.1 million dollars, or 0.25 dollar per diluted share. Earnings per diluted share were negatively impacted by 0.11 dollar.

Gross margin for the whole year increased to 30.4 percent from 30 percent last year primarily due to improvement in distribution costs. Operating income was 18.1 million dollars, or 3.3 percent, a 120 basis point decrease. Net income was 7.5 million dollars, or 0.27 dollar per diluted share, compared to 14.1 million dollars, or 0.50 dollar per diluted share. Earnings per share were negatively impacted by 0.12 dollar due to the year over year tax rate difference.

First quarter 2016 outlook

The company expects first quarter comparable store sales to be in the range of below 3 percent to 6 percent, operating loss to be in the range of 2 million dollars to 4 million dollars, and net loss per diluted share to be in the range of 0.06 dollar to 0.10 dollar.