Tilly’s Inc. announced comparable store net sales results for the nine-week period ended January 4, 2020, and provided updates on its fiscal 2019 fourth-quarter earnings outlook in advance of its attendance at the annual ICR Conference in Orlando, FL on January 13-14, 2020.
“Following a strong Black Friday weekend and Cyber Monday, our business experienced an unexpected deceleration in net sales and store traffic during the second and third weeks of December, resulting in a disappointing 2019 holiday season overall,” commented Ed Thomas, president and CEO.
- Total net sales of $143.9 million increased by 1.1 percent for the holiday period compared to $142.4 million for last year’s comparable nine-week holiday period ended January 5, 2019.
- Comparable store net sales, including e-commerce, decreased by 2.0 percent for the holiday period compared to an increase of 5.8 percent for last year’s holiday period.
- Comparable store net sales in physical stores decreased by 2.7 percent for the holiday period compared to a decrease of 0.7 percent during last year’s holiday period. Net sales in physical stores represented approximately 80.5 percent of total net sales for the holiday period, consistent with last year’s holiday period.
- E-commerce net sales increased by 1.0 percent for the holiday period compared to an increase of 42.8 percent during last year’s holiday period. E-commerce net sales represented approximately 19.5 percent of total net sales for the holiday period, consistent with last year’s holiday period.
- The company’s comparable store net sales results for the 2019 holiday period decreased in most of the company’s major geographic markets, with the exception of New England, the Upper Midwest and Arizona.
- Comparable store net sales were weakest in the Southeast, Florida and Nevada. In terms of merchandising, comparable store net sales of Girls and Women were positive, but this was more than offset by declines in all other merchandising departments, particularly Footwear and Accessories.
- Based on its operating results during the holiday period and historical trends, the company now expects its fiscal 2019 fourth-quarter comparable store net sales to decrease by 2 percent to 3 percent and earnings per diluted share to be approximately $0.18 to $0.20. This outlook assumes an effective tax rate of approximately 31 percent, including certain discrete items relating to stock options expirations and weighted average diluted shares of approximately 29.9 million based on the latest available information.
Previously, guidance had called for an anticipated comparable store net sales increase of 2 percent to 5 percent for the quarter as a whole. EPS was expected to range from $0.29 to $0.32.
The company will be presenting at the ICR Conference 2020 on Tuesday, January 14, 2020, at 11:30 a.m. Eastern Standard Time.