For the third quarter, Tilly’s, Inc. reported total net sales of 154.8 million dollars, an increase of 8 million dollars or 5.4 percent, compared to 146.8 million dollars last year. The company ended the quarter with 232 total stores, including one RSQ-branded pop-up store, compared to 227 total stores, including four RSQ-branded pop-up stores, last year. Comparable store net sales, which include e-commerce net sales, increased 3.1 percent, while comparable store net sales in physical stores increased 2.4 percent and ecommerce net sales increased 7.4 percent.
“Tillys continued its positive momentum with its 14th consecutive quarter of flat to positive comparable store net sales during the third quarter, including positive comps from both stores and e-commerce, all merchandising departments, and each month of the quarter,” commented Ed Thomas, President and Chief Executive Officer of the company, adding, “Based on our results during Thanksgiving weekend through Cyber Monday, we believe we are well positioned to continue our momentum during the Holiday season.”
Review of Tilly’s Q3 and nine months results
Gross profit for the quarter was 47.2 million dollars, an increase of 3.5 million dollars or 8.1 percent, gross margin, or gross profit as a percentage of net sales, increased to 30.5 percent from 29.7 percent last year. Operating income was 7.7 million dollars or 5 percent of net sales, compared to 6.7 million dollars or 4.6 percent of net sales, last year, while non-GAAP operating income was 8.4 million dollars or 5.4 percent of net sales compared to 7.5 million dollars or 5.1 percent of net sales, last year. Net income was 6.4 million dollars or 21 cents per diluted share compared to 5.4 million dollars or 18 cents per diluted share, last year, while non-GAAP net income was 6.9 million dollars or 23 cents per diluted share, compared to 6 million dollars or 20 cents per diluted share, last year.
Total net sales for the nine months were 446.8 million dollars, an increase of 19 million dollars or 4.4 percent, Comparable store net sales, which include e-commerce net sales, increased 2 percent, ecommerce net sales increased 16.4 percent and comparable store net sales in physical stores decreased 0.2 percent.
Gross profit for the period was 134.6 million dollars, an increase of 5.8 million dollars or 4.5 percent, while gross margin was 30.1 percent in both years and product margins improved by 10 basis points as a percentage of net sales. Net income was 16.3 million dollars or 55 cents per diluted share, in both years, while non-GAAP net income was 16.8 million dollars or 57 cents per diluted share, compared to 15.9 million dollars or 53 cents per diluted share, last year.