Tilly’s Q4 net sales increase 3.2 percent

Total net sales at Tilly’s were 177.9 million dollars, an increase of 5.4 million dollars or 3.2 percent, and comparable net sales, including both physical stores and e-commerce, increased by 2.5 percent compared to last year. Net income for the quarter was 8.9 million dollars or 29 cents per diluted share compared to 6.3 million dollars or 21 cents per diluted share, last year.

“Finishing such a challenging year with a positive fourth quarter comp, a significantly stronger e-com business, and improved earnings per share compared to last year’s fourth quarter, along with a strong, debt-free balance sheet was a remarkable accomplishment,” said Ed Thomas, President and Chief Executive Officer.

Highlights of Tilly’s Q4 performance

Net sales from physical stores were 122.5 million dollars, a decrease of 16.7 million dollars or 12 percent, while comparable net sales from physical stores decreased by 12.3 percent. The company ended the quarter with 238 total stores compared to 240 last year.

Net sales from e-commerce were 55.4 million dollars, an increase of 22.1 million dollars or 66.5 percent and represented 31.1 percent of total net sales compared to 19.3 percent of total net sales last year.

Gross profit for the quarter was 58.3 million dollars, an increase of 6.1 million dollars and gross margin or gross profit as a percentage of net sales, was 32.7 percent, an improvement of 250 basis points compared to 30.2 percent last year. Operating income was 14.1 million dollars or 7.9 percent of net sales compared to 8.5 million dollars or 4.9 percent of net sales, last year.

Review of Tilly’s full year results

Total full year net sales were 531.3 million dollars, a decrease of 88 million dollars or 14.2 percent as a result of the various periods of store closures, reduced store operating hours, and restrictions on customer traffic into physical stores resulting from the Covid-19 pandemic. Net sales from physical stores were 357.9 million dollars, a decrease of 162.9 million dollars or 31.3 percent.

Net sales from e-commerce were 173.4 million dollars, an increase of 74.9 million dollars or 76.2 percent and represented 32.6 percent of total net sales compared to 15.9 percent last year.

Gross profit was 142.2 million dollars, a decrease of 44.5 million dollars or 23.8 percent, compared to 186.7 million dollars last year. Gross margin was 26.8 percent, a decrease of 330 basis points as a percentage of net sales, compared to 30.1 percent last year. Operating loss was 3 million dollars or 0.6 percent of net sales, compared to operating income of 28.5 million dollars or 4.6 percent of net sales, last year. Net loss was 1.1 million dollars or 4 cents per basic share, compared to net income of 22.6 million dollars or 76 centsper diluted share, last year.

The company’s total first quarter comparable net sales till March 8, 2021, including both physical stores and e-commerce, were 45.3 million dollars , a decrease of 2.2 million dollars or 4.6 percent, while total comparable net sales decreased in February 2021, but have been positive thus far in March 2021. Comparable net sales from physical stores were 34.5 million dollars, a decrease of 5.3 million dollars or 13.3 percent compared to 39.8 million dollars last year. Net sales from e-commerce were 10.7 million dollars, an increase of 3.1 million dollars or 40.6 percent.

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