- Tilly's ( NYSE: TLYS ) shares slid 9% on Friday after the downbeat earnings guidance fell well below consensus alongside the miss reported for second quarter.
- Guidance: The California-based retailer said it expects third quarter's earnings per share to be in the range of $0.05 to $0.11 vs. consensus of $0.21
- Net Sales is expected to range between $165-$170M vs. initial consensus of $173.46M; while comparable net sales is expected to decline 18% to 21%.
- Operating income to be in the range of approximately $1.9M to $4.6M.
- Q2 2022 Highlights: Revenue of $168.3M (-16.7% Y/Y) missed consensus by $2.5M. Total comparable net sales, including both physical stores and e-commerce, decreased by 16.4% Y/Y.
- That breaks down to physical stores revenue of $137.1M (-16.7% Y/Y) and e-com sales of $31.2M (-16.4% Y/Y).
- The California-based retailer ended the second quarter with 242 total stores compared to 244 total stores over a year ago.
- Gross profit was $52M with margin of 30.9% vs. 37% in Q2 2021.
- Operating income was $5.2M, or 3.1% of net sales, compared to $26.4M, or 13.1% of net sales, last year.
- GAAP EPS of $0.13 missed consensus by $0.03.
- The company ended the quarter with $116.4 of cash and marketable securities and no debt outstanding.
- On buyback front, Tilly's has repurchased 987,427 shares worth $9M under the program and is authorized to repurchased up to an additional 1,012,573 shares by mid-March 2023.
- Rating Update: Roth Capital lowered its price target to $9 from $10, implying a upside of 22.78% from stock's last close.
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Tilly's shares fall on both-line miss, dim forecast