- Prachi Singh |
For its full year to February 2, 2019, Tilly’s, Inc. reported total net sales of 598.5 million dollars, an increase of 3.7 percent, while comparable store net sales increased 4 percent, following a 1 percent increase in fiscal 2017. Comparable store net sales in physical stores increased 1.4 percent and represented approximately 85 percent of total net sales, while ecommerce net sales increased 21.7 percent and represented approximately 15 percent of net sales.
“Tillys finished fiscal 2018 with its strongest single-quarter comp sales result since the third quarter of fiscal 2011, and its best consecutive three-quarter run of comp sales results since becoming a public company in 2012," said Ed Thomas, President and Chief Executive Officer of Tilly’s in a statement.
Highlights of fourth quarter results
Total net sales for the fourth quarter, Tilly’s said, were 170.6 million dollars, an increase of 3.8 percent. The Company ended fiscal 2018 with 229 total stores, including four RSQ-branded pop-up stores, compared to 219 full-size stores last year. Comparable store net sales, including ecommerce net sales, increased 6.4 percent compared to flat comparable store net sales during last year's fourth quarter. Ecommerce net sales increased 49.6 percent and represented approximately 20 percent of total net sales this year. Comparable store net sales in physical stores decreased 0.9 percent and represented approximately 80 percent.
Gross profit for the quarter was 52.2 million dollars, an increase of 1.4 percent, while gross margin, or gross profit as a percentage of net sales, decreased to 30.6 percent from 31.3 percent last year. Operating income was 10.9 million dollars or 6.4 percent of net sales, compared to 11.4 million dollars or 7 percent of net sales, last year. Net income was 8.7 million dollars or 29 cents per diluted share compared to 6.7 million dollars or 23 cents per diluted share, last year. On a non-GAAP basis, net income was 8 million dollars or 27 cents per diluted share, compared to 6.7 million dollars or 23 cents per diluted share, last year.
Review of Tilly’s FY18 performance
Gross profit for the year was 180.9 million dollars, an increase of 3.2 percent from 175.4 million dollars last year, while gross margin was 30.2 percent, compared to 30.4 percent last year, a decrease of 20 basis points. Operating income was 31.5 million dollars or 5.3 percent of net sales, compared to 24 million dollars or 4.2 percent of net sales, last year, an improvement of 110 basis points.
Net income for 2018 was 24.9 million dollars or 84 cents per diluted share, compared to 14.7 million dollars or 51 cents per diluted share, last year. On a non-GAAP basis, net income was 23.9 million dollars or 80 cents per diluted share, compared to 18.9 million dollars or 65 cents per diluted shared, last year.
Tilly’s reveals expectations for first quarter
Tilly’s said, based on current and historical trends, particularly with respect to years in which Easter occurred later in the year, as in fiscal 2019, the company expects total net sales for the first quarter of fiscal 2019 to range from approximately 128 million dollars to 130 million dollars based on an assumption of a low single-digit percentage increase in comparable store net sales.
The company expects pre-tax operating results to range from a loss of approximately 0.4 million dollars to income of approximately 1.2 million dollars, and earnings per share to range from a loss of 1 cent to income of 3 cents. This compares to a comparable store net sales increase of 0.1 percent, pre-tax income of 1.7 million dollars, and earnings per diluted share of 4 cents for the first quarter of fiscal 2018.