Shares of the specialty retailer Tilly's (NYSE: TLYS) are falling fast after the retailer reported holiday sales on Jan. 13 that were below expectations. Since the announcement, its stock price is down 25%. With no real explanation for the underperformance, CEO Ed Thomas said, "The business experienced an unexpected deceleration in net sales and store traffic during the second and third weeks of December." Despite the holiday headwinds, the retailer is moving ahead with its plans to expand.
The horrid results are an about-face for the company, which was riding high on the positive momentum from its third-quarter earnings report, where it surpassed analysts' expectations on both the top and bottom lines and offered optimistic guidance on the quarter to follow.
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