Tilly’s Q2 sales rise 5 percent

Tilly’s total sales for the second quarter ended July 30, 2016 were 136.4 million dollars, an increase of 5 percent over last year. Comparable store sales, which include e-commerce sales, increased 0.9 percent.

“Our second quarter comp sales and operating income exceeded our outlook ranges and we ended the quarter with inventory down 7percent on a per square foot basis," stated Ed Thomas, President and Chief Executive Officer.

Overview of the second quarter and H1

Gross profit was 38.8 million dollars, a 6.1 percent increase from 36.6 million dollars last year. Gross margin, or gross profit as a percentage of net sales, improved 40 basis points to 28.5 percent. Operating income was 2.2 million dollars or 1.6 percent of net sales. Net income was 1.4 million dollars or 0.05 dollar per diluted share, compared to 0.6 million dollars or 0.02 dollar per diluted share, last year.

Total net sales were 256.6 million dollars, an increase of 2.6 percent over last year for the first half of this fiscal. Comparable store sales, which include e-commerce sales, decreased 1.4 percent. Gross profit was 71.4 million dollars, a 1.7 percent decrease from 72.6 million dollars last year.

Operating loss was 1.7 million dollars, or 0.7 percent of net sales, compared to operating income of 3.2 million dollars or 1.3 percent of net sales, last year. Net loss was 1.3 million dollars or 0.05 dollar per share, compared to net income of 1.8 million dollars, or 0.06 dollar per diluted share, last year.

Third quarter outlook

The company expects third quarter comparable store sales to be in the range of flat to below 4 percent, operating income to be in the range from 3.5 million dollars to 6.5 million dollars, and earnings per share results to be in the range from 0.07 dollar to 0.13 dollar.

Picture:Tully's