Tilly’s Q3 net income accelerates, sales increase 46.9 percent

For the third quarter, Tilly’s, Inc. total net sales were 206.1 million dollars, an increase of 65.8 million dollars or 46.9 percent. Net income improved to 20.8 million dollars or 66 cents per diluted share compared to 2.1 million dollars or 7 cents per diluted share, last year.

“Fiscal 2021 continues to be a record-setting year for us so far, which we believe has been driven by our strong product assortment, an improved consumer spending environment, and the hard work and dedication of our entire team,” said Ed Thomas, the company’s president and chief executive officer in a statement.

Tilly’s third quarter operating results

Net sales from physical stores were 165.3 million dollars, an increase of 60.7 million dollars or 58.1 percent. Net sales from e-commerce were 40.8 million dollars, an increase of 5.1 million dollars or 14.3 percent.

Total comparable net sales for the third quarter of fiscal 2021 compared to the pre-pandemic third quarter of fiscal 2019 increased by 27.4 percent. Comparable net sales from physical stores increased by 18.3 percent, with increases across all geographic markets, and e-commerce net sales increased by 80.5 percent.

Gross profit for the quarter was 76.7 million dollars or 37.2 percent of net sales compared to 40.7 million dollars or 29 percent of net sales, last year.

Operating income improved to 29 million dollars or 14.1 percent of net sales, compared to 3.5 million dollars or 2.5 percent of net sales.

Tilly’s financial results for the nine month period

Total net sales for the nine month period were 571.2 million dollars, an increase of 217.8 million dollars or 61.6 percent. Net sales from physical stores were 457.6 million dollars, an increase of 222.2 million dollars or 94.4 percent.

Net sales from e-commerce were 113.6 million dollars, a decrease of 4.4 million dollars or 3.7 percent compared to 118.1 million dollars last year. Total comparable net sales for the period compared to the first thirty-nine weeks of pre-pandemic fiscal 2019 increased 22.5 percent with comparable net sales from physical stores up 13.7 percent and e-commerce net sales up 74.5 percent.

Gross profit was 206.3 million dollars or 36.1 percent of net sales compared to 83.9 million dollars or 23.7 percent of net sales, last year. Operating income improved to 70.3 million dollars or 12.3 percent of net sales compared to an operating loss of 17.2 million dollars or 4.9 percent of net sales, last year. Net income improved to 52.2 million dollars or 1.68 dollars per diluted share compared to a net loss of 10 million dollars or 34 cents per share, last year.

Tilly’s update on the fourth quarter outlook

The company said, last year’s fourth quarter was the first full period since the pandemic began in which the company was fully operational. Total comparable net sales through November 30, 2021, increased by 19.6 percent compared to last year, with comparable net sales increases from physical stores of 27.6 percent and from e-commerce of 3.9 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 fourth quarter and that global supply chain challenges will not have a material negative impact on the company’s fiscal 2021 fourth quarter net sales results, the company expects its fourth quarter net sales to be in the range of approximately 210 million dollars to 215 million dollars and earnings per diluted share to be in the range of 42 cents to 50 cents.

During fiscal 2022, Tilly’s plans to open approximately 15 to 20 new stores within existing markets, primarily in California, Texas and the Northeast. The company currently expects to have 243 total stores at the end of fiscal 2021 compared to 238 at the end of fiscal 2020.