Tilly’s, Inc. reported total net sales for the first quarter ended April 28, were $96.5 million, an increase of 16.1 percent. Comparable store sales, which include e-commerce sales, increased 4.3 percent. E-commerce sales increased 31 percent to $10.9 million compared to the first quarter in the prior year.

Gross profit increased 16.1 percent to $30.4 million. Gross margin was 31.5 percent, equal to the first quarter of fiscal 2011. Operating income increased 21.4 percent to $6.0 million. Operating margin for the quarter was 6.2 percent as compared to 6.0 percent in the first quarter of 2011.
On a GAAP basis, net income was $5.9 million, or 29 cents per diluted share, based on a weighted average diluted share count of 20.5 million. This compares to $4.9 million or 24 cents per diluted share based on 20.4 million weighted average diluted shares in the first quarter of fiscal 2011.
On a pro-forma basis, assuming an effective tax rate of 40 percent for both periods, net income for the quarter increased 21.7 percent to $3.6 million, or 18 cents per weighted average diluted share, from $3.0 million or 14 cents per weighted average diluted share in the first quarter 2011.

“Growth in the quarter was driven by both new stores and increased comparable store sales, including e-commerce sales,” said Daniel Griesemer, president and CEO. “Although the first quarter is a relatively small proportion of our full year earnings, the earnings growth rate in the quarter exceeded our long-term plan and reflects a continued high-quality expansion of our business. We are excited about the significant opportunities ahead of us to drive sustained long-term growth and increased value for our shareholders.”

Balance Sheet and Liquidity

 As of April 28, the company had $21.7 million of cash and cash equivalents as compared to $25.1 million as of Jan. 28, 2012 and $28.8 million as of April 30, 2011. The company ended the quarter with no long-term borrowings and no debt outstanding on its revolving credit facility.

Recently Completed Initial Public Offering

Tilly’s successfully completed its IPO on May 3, 2012, pricing its stock at $15.50 per share. As a result of this offering the company increased the number of shares outstanding by 7.6 million and received net proceeds of approximately $23 million, after payment of offering fees and expenses and a final distribution of taxable earnings to “S” Corporation shareholders.

 

TILLY’S


                                 STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

Thirteen Weeks Ended
April 28, April 30,
2012 2011
Net sales $ 96,524 $ 83,131
Cost of goods sold (includes buying, distribution, and occupancy costs) 66,106 56,922
Gross profit 30,418 26,209
Selling, general and administrative expenses 24,392 21,244
Operating income 6,026 4,965
Interest expense, net 44 49
Income before provision for income taxes 5,982 4,916
Provision for income taxes 68 56
Net income $ 5,914 $ 4,860
Basic income per common share $ 0.30 $ 0.24
Diluted income per common share $ 0.29 $ 0.24
Weighted average basic common shares outstanding 20,000 20,000
Weighted average diluted common shares outstanding 20,512 20,440
Pro forma income information:
Historical income before provision for income taxes $ 5,982 $ 4,916
Pro forma provision for income taxes 2,393 1,966
Pro forma net income $ 3,589 $ 2,950
Pro forma basic income per common share $ 0.18 $ 0.15
Pro forma diluted income per common share $ 0.18 $ 0.14