Tilly’s Q2 sales and earnings accelerate

Tilly’s, Inc. total net sales were 202 million dollars, an increase of 66.1 million dollars or 48.7 percent, compared to 135.8 million dollars last year.

Net income for the quarter improved to 20.4 million dollars or 66 cents per diluted share compared to 5.3 million dollars or 18 cents per diluted share, last year.

“Our second quarter results included a record level of net sales and earnings per share for any quarter, and our first half earnings per share exceeded the results of any full fiscal year, since we became a public company in 2012,” commented Ed Thomas, the company’s president and chief executive officer, adding, “The back-to-school season is off to a strong start with double-digit percentage increases in comparable net sales in both physical stores and e-commerce compared to both last year and 2019.”

Review of Tilly’s Q2 results

The company said, net sales from physical stores were 164.6 million dollars, an increase of 80.8 million dollars or 96.3 percent, compared to 83.9 million dollars last year. Net sales from stores represented 81.5 percent of total net sales compared to 61.7 percent of total net sales last year.

The company ended the second quarter with 244 total stores compared to 238 total stores at the end of the second quarter last year. During the second quarter, the company opened six new stores.

Net sales from e-commerce were 37.3 million dollars, a decrease of 14.7 million dollars or 28.2 percent compared to 52 million dollars last year, primarily due to the anniversary of last year’s triple-digit e-commerce net sales growth during May and June during the period of significant government-mandated store closures. E-commerce net sales represented 18.5 percent of total net sales compared to 38.3 percent of total net sales last year.

Total comparable net sales increased by 18.3 percent, while comparable net sales from physical stores increased by 11 percent, with increases across all geographic markets, and e-commerce net sales increased by 63.4 percent.

Gross profit was 74.7 million dollars or 37 percent of net sales, compared to 41.7 million dollars or 30.7 percent of net sales, last year.

Highlights of Tilly’s first half operating results

The company added that for the first half period, total net sales were 365.1 million dollars, an increase of 152 million dollars or 71.3 percent, compared to 213.1 million dollars last year. Net sales from physical stores were 292.3 million dollars, an increase of 161.5 million dollars or 123.5 percent, compared to 130.8 million dollars last year. Net sales from stores represented 80.1 percent of total net sales compared to 61.4 percent of total net sales last year.

Net sales from e-commerce were 72.8 million dollars, a decrease of 9.5 million dollars or 11.6 percent, compared to 82.3 million dollars last year. E-commerce net sales represented 19.9 percent of total net sales compared to 38.6 percent of total net sales last year.

Total comparable net sales for the first half increased 19.9 percent with comparable net sales from physical stores up 11.3 percent and e-commerce net sales up 71.2 percent.

Gross profit for the period was 129.6 million dollars, or 35.5 percent of net sales, compared to 43.3 million dollars, or 20.3 percent of net sales, last year. Net income improved to 31.4 million dollars or 1.02 dollars per diluted share compared to a net loss of 12.1 million dollars or loss of 41 cents per share, during the first half of last year.

Tilly’s expects Q3 net sales to range between 187 to 193 million dollars

The company further said that total comparable net sales for fiscal August ended August 28, 2021, increased by 20.4 percent relative to the comparable period of fiscal 2019 with comparable increases from physical stores of 11.6 percent and from e-commerce of 81 percent.

Based on current and historical trends, and assuming that all of the Company’s stores and e-commerce will remain in operation throughout the third quarter, the company expects net sales to be in the range of approximately 187 million dollars to 193 million dollars and earnings per diluted share to be in the range of 30 cents to 34 cents.

The company expects to have 243 total stores open at the end of the third quarter compared to 238 at the end of last year’s third quarter and 232 at the end of fiscal 2019’s third quarter.