Covid-19 related restrictions hit Tilly's Q3 results

Total net sales for the third quarter at Tilly’s Inc., were 140.3 million dollars, a decrease of 14.5 million dollars or 9.4 percent compared to 154.8 million dollars last year. These results, the company said in a statement, were negatively influenced by delayed back-to-school timing this year, restrictions on store customer traffic and operating hours, and the government-mandated closure of 33 California stores for a portion of the third quarter. Compared to the respective fiscal months of last year, August net sales decreased by 35 percent, followed by a 22 percent increase in September net sales and a 10 percent increase in October net sales.

“The third quarter finished strong following a weak start in August resulting from delays in back-to-school timing this year, and this positive momentum carried into the early stages of the fourth quarter,” commented Ed Thomas, the company’s President and Chief Executive Officer, adding, “With all of our stores closed on Thanksgiving and with reduced operating hours and significant restrictions on customer traffic on Black Friday this year as a result of the pandemic, we saw much lower sales compared to last year for those two days.”

Review of third quarter results at Tilly’s

The company added that net sales from physical stores were 104.6 million dollars, a decrease of 27.5 million dollars or 20.8 percent and store traffic decreased by 34 percent compared to last year’s third quarter, partially offset by a low double-digit percentage increase in conversion rate and a high single-digit percentage increase in average transaction value. The company’s net sales from e-commerce were 35.7 million dollars, an increase of 13 million dollars or 57.3 percent compared to approximately 22.7 million dollars last year.

Gross profit for the quarter was 40.7 million dollars or 29 percent of net sales, compared to 47.2 million dollars or 30.5 percent of net sales last year. Operating income was 3.5 million dollars or 2.5 percent of net sales, compared to operating income of 7.7 million dollars or 5 percent of net sales, last year. Net income was 2.1 million dollars or 7 cents per diluted share, compared to 6.4 million dollars or 21 cents per diluted share, last year.

Highlights of Tilly’s year-to-date results

Total net sales for the nine months were 353.4 million dollars, a decrease of 93.4 million dollars or 20.9 percent, while net sales from physical stores were 235.3 million dollars, a decrease of 146.3 million dollars or 38.3 percent, compared to 381.6 million dollars last year. Net sales from e-commerce were 118.1 million dollars, an increase of 52.9 million dollars or 81.1 percent compared to approximately 65.2 million dollars last year.

Gross profit for the period was 83.9 million dollars or 23.7 percent of net sales, compared to 134.6 million dollars or 30.1 percent of net sales last year. Operating loss was 17.2 million dollars or 4.9 percent of net sales compared to operating income of 20 million dollars or 4.5 percent of net sales, last year. Net loss for the period was 10 million dollars or 34 cents per share, compared to net income of 16.3 million dollars or 55 cents per diluted share, last year.

Picture:Facebook/Tilly's