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.)