Tilly's Q1 net sales increase 2.2 percent

Total net sales at Tilly’s Inc. were 123.6 million dollars, an increase of 2.2 percent, from 120.9 million dollars last year, which the company said, were primarily due to the calendar shift impact of last year's 53rd week in the retail calendar. Comparable store sales, which include ecommerce sales, increased 0.1 percent in total, comparable store sales in physical stores were up 1.2 percent and ecommerce sales were down 7.2 percent for the quarter.

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“Tillys continues to drive increased store traffic, positive store comps, and improved profitability," commented Ed Thomas, Tilly’s President and Chief Executive Officer in a press statement, adding, "Although corrective efforts continue, we believe we have addressed the most significant technical issues related to our e-com business and results are beginning to improve. E-com sales remain inconsistent, but we are off to a good start to the second quarter with positive comps both in stores and online thus far."

Financial review of Tilly’s first quarter

Gross profit for the quarter was 35 million dollars, an increase of 6.3 percent from 32.9 million dollars last year. Gross margin, or gross profit as a percentage of net sales, increased to 28.3 percent from 27.2 percent last year.

Operating income was 1.3 million dollars or 1.1 percent of net sales, compared to an operating loss of 0.3 million dollars or 0.3 percent of net sales, last year. Net income was 1.2 million dollars or 0.04 dollar per diluted share, compared to a net loss of 0.2 million dollars or 0.01 dollar per share, last year.

Fiscal 2018 second quarter outlook

As a result of the calendar shift impact of last year's 53rd week in the retail calendar, the company expects its second quarter total net sales to range from 153 million dollars to 157 million dollars based on an assumed increase in comparable stores sales of 1 to 4 percent. This calendar shift results in an increase of approximately 12.3 million dollars in last year's comparable sales base and approximately 0.10 dollar of diluted earnings per share for second quarter comparability.

The company expects that this same calendar shift will have an opposite impact on the third quarter, with a net reduction of approximately 13.9 million dollars in last year's comparable store sales base and approximately 0.12 dollar of diluted earnings per share for third quarter comparability.

Picture:Tilly's website