- Prachi Singh |
Tilly’s, Inc. reported total net sales of 164.3 million dollars, an increase of 2.6 percent for the fourth quarter, while comparable store sales, including e-commerce sales, were flat compared to a 0.1 percent in the fourth quarter last year. Full year total net sales of 576.9 million dollars, increased 1.4 percent against last year, while comparable store sales including e-commerce sales, increased 1 percent compared to 0.5 percent rise in fiscal 2016.
“Tillys delivered an improvement in year-over-year operating income of 10 percent for the fourth quarter and 24 percent for the 2017 fiscal year as a whole," commented Ed Thomas, Tilly’s President and CEO in a media statement, adding, "We aim to continue our operating momentum during fiscal 2018, and are off to a good start in the first quarter thus far."
Fourth quarter and FY17 result highlights
Gross profit for the quarter was 51.4 million dollars, an increase of 4.8 percent and gross margin, or gross profit as a percentage of net sales, increased to 31.3 percent from 30.6 percent last year. This 70 basis point increase, Tilly’s said, was attributable to a 90 basis point reduction in occupancy costs, partially offset by a 20 basis point decrease in product margins.
Full year gross profit was 175.4 million dollars, an increase of 4.1 percent, while gross margin was 30.4 percent compared to 29.6 percent last year, an 80 basis point increase that was driven by reductions in total buying, distribution and occupancy costs. Product margins were flat.
Operating income was 11.4 million dollars or 7 percent of net sales in the fourth quarter, an increase of 10 percent or 50 basis point increase driven by improved occupancy costs. Net income was 6.7 million dollars or 0.23 dollar per diluted share, compared to 6.3 million dollars or 0.22 dollar per diluted share, last year.
Operating income for the year was 24 million dollars or 4.2 percent of net sales, a 24.1 percent increase over last year. The company said, this 80 basis point improvement was primarily driven by increased comparable store sales and reductions in buying, distribution and occupancy costs. Net income was 14.7 million dollars or 0.51 dollar per diluted share, an increase of 28.8 percent from 11.4 million dollars or 0.40 dollar per diluted share, last year.
Tilly’s projects expectations for Q1
Based on current and historical trends, the company expects its first quarter comparable store sales to range from flat to a low single-digit percentage increase, operating results to range from a loss of approximately 0.5 million dollars to income of approximately 1 million dollars and per share results to range from a loss of 0.01 dollar to income per diluted share of 0.03 dollar.
This compares to a comparable store sales increase of 0.6 percent, an operating loss of 0.2 million dollars, and loss per share of 0.01 dollar for the first quarter of fiscal 2017.