Apparel retailer Tillys Q3 net loss narrows, helped by lower costs

Reuters
Dec 04
Apparel retailer Tillys Q3 net loss narrows, helped by lower costs

Overview

  • Tillys fiscal Q3 total net sales decreased 2.7%, but comparable net sales grew 2.0%

  • Gross profit for fiscal Q3 improved to 30.5% of net sales from 25.9% last year

  • Net loss for fiscal Q3 improved to $1.4 mln from $12.9 mln last year

Outlook

  • Company estimates Q4 net sales between $146 mln and $151 mln

  • Tillys expects Q4 comparable net sales to rise 4% to 8%

  • Company projects Q4 net loss between $5.6 mln and $3.5 mln

  • Tillys anticipates Q4 product margin improvement of 300 to 350 basis points

Result Drivers

  • PRODUCT MARGINS - Improved product margins due to higher initial markups and lower markdowns from reduced inventory levels

  • STORE COUNT REDUCTION - Reduced store count led to lower occupancy costs, aiding SG&A expense reduction

  • SG&A EXPENSES - Decrease in SG&A expenses due to lower store payroll, e-com fulfillment labor, and asset write-down charges

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

$139.59 mln

Q3 Net Income

-$1.41 mln

Q3 Gross Profit

$42.59 mln

Q3 Operating Income

-$1.92 mln

Q3 Pretax Profit

-$1.38 mln

Analyst Coverage

  • The one available analyst rating on the shares is "hold"

  • The average consensus recommendation for the apparel & accessories retailers peer group is "buy."

  • Wall Street's median 12-month price target for Tillys Inc is $2.25, about 53.1% above its December 2 closing price of $1.47

Press Release: ID:nBwSSBP4a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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