- Prachi Singh |
Tilly’s, Inc. net sales for the third quarter of 146.8 million dollars decreased by 6 million dollars or 3.9 percent, due to the calendar shift impact of last year's 53rd week in the retail calendar. Comparable store net sales, including e-commerce, increased 4.3 percent, while comparable store net sales in physical stores increased 1.3 percent and represented approximately 86 percent of total net sales. E-commerce net sales increased 26.7 percent and represented approximately 14 percent of total net sales.
“Tillys continued its positive momentum with its tenth consecutive quarter of flat to positive comparable store net sales and its strongest back-to-back quarterly comparable store net sales performance since the first half of fiscal 2012," said Ed Thomas, the company’s President and Chief Executive Officer in a statement, adding, "We believe we are well positioned to continue our momentum during the holiday season."
Highlights of Tilly’s third quarter and nine months results
Gross profit for the quarter of 45.8 million dollars decreased by 4.3 million dollars or 8.6 percent, while gross margin, or gross profit as a percentage of net sales, decreased to 31.2 percent from 32.8 percent.
The company said, net income was 6.4 million dollars or 21 cents per diluted share compared to 8.8 million dollars or 30 cents per diluted share, last year. On a non-GAAP basis, net income was 7.1 million dollars or 24 cents per diluted share this year compared to 9.2 million dollars or 31 cents per diluted share, last year.
Comparable store net sales, including e-commerce in the first three quarters, increased 3.1 percent, while comparable store net sales in physical stores increased 2.2 percent and represented approximately 87 percent of total net sales. E-commerce net sales increased 9.2 percent and represented approximately 13 percent of total net sales. Total net sales of 427.9 million dollars increased by 15.3 million dollars or 3.7 percent due to increased comparable store net sales and net sales from seven net new stores.
Gross profit of 130.9 million dollars increased by 6.9 million dollars or 5.6 percent and gross margin increased to 30.6 percent from 30 percent last year. Net income was 17.4 million dollars or 58 cents per diluted share, compared to 8 million dollars or 28 cents per diluted share, last year. On a non-GAAP basis, net income was 17 million dollars or 57 cents per diluted share, compared to 12.1 million dollars or 42 cents per diluted share, last year.
Tilly’s reveals fourth quarter outlook
The company expects its fourth quarter total net sales to range from approximately 163 million dollars to 168 million dollars based on an assumed 2 percent to 5 percent increase in comparable store net sales. The company expects fourth quarter operating income to range from approximately 8.5 million dollars to 10 million dollars and earnings per diluted share to range from 22 cents to 26 cents.
The company expects to open up to 15 to 20 new, full-size stores and an as-yet undetermined number of RSQ-branded pop-up shops during fiscal 2019.