Tilly’s, Inc. Announces Holiday Period Comp Store Net Sales Increase 5.8%
Updates Fiscal 2018 Fourth Quarter Outlook and Fiscal 2019
“Tillys delivered its strongest holiday period comparable store net
sales increase since 2011, driven by strong e-commerce growth,”
Total net sales of
$142.4 millionincreased by 8.3% for the holiday period from $131.5 millionfor last year’s comparable nine-week holiday period ended January 6, 2018.
Comparable store net sales, including e-commerce, increased by 5.8%
for the holiday period compared to an increase of 0.4% for last year’s
- E-commerce net sales increased by 42.8% and represented approximately 19.3% of total net sales for the holiday period. E-commerce net sales decreased by 9.7% and represented approximately 14.6% of total net sales during last year’s holiday period.
- Comparable store net sales in physical stores decreased by 0.7% and represented approximately 80.7% of total net sales for the holiday period. Comparable store net sales in physical stores increased by 2.4% and represented approximately 85.4% of total net sales during last year’s holiday period.
- The Company’s operating results for the holiday period were driven by strong e-commerce net sales, resulting in an increase in e-commerce shipping, marketing and fulfillment costs compared to last year. The strength of the Company’s branded merchandise assortment resulted in an increase in the sales penetration of third-party brands relative to proprietary brands, resulting in incrementally lower product margins compared to last year due to lower initial markups.
Based on its operating results during the holiday period and
historical trends, the Company now expects its earnings per diluted
share for the fiscal 2018 fourth quarter ending
February 2, 2019, to be approximately $0.24 to $0.26per diluted share, within the upper half of its original earnings outlook range of $0.22 to $0.26per diluted share. This outlook assumes an anticipated effective tax rate of approximately 27.3% and weighted average diluted shares of approximately 29.9 million based on the latest available information.
Based on the latest lease negotiations and available information, the
Company now expects to open approximately 10 to 15 new, full-size
stores during the fiscal 2019 year ending
February 1, 2020. The Company had previously announced its intentions to open approximately 15 to 20 new stores during fiscal 2019, subject to obtaining appropriate lease economics.
As previously disclosed, the Company issued nontransferable discount
coupons to approximately 612,000 of its existing customers in early
September 2018pursuant to the settlement terms of a legal matter. These coupons allow for a one-time 50% discount on a single, future purchase transaction of up to $1,000. Any unused coupons will expire on September 4, 2019. From original issuance through the holiday period, approximately 1.3% of these coupons had been redeemed, resulting in no material impact on the Company’s comparable store net sales or operating results as a whole. Although redemptions have been very low in number thus far, there can be no assurance that the impact of any future coupon redemptions during fiscal 2019 will remain immaterial.
The Company’s actual financial results for the fiscal 2018 fourth
quarter and full fiscal year are subject to completion of the period,
finalization of its normal quarter-end and year-end accounting
procedures, and the audit of its fiscal 2018 financial statements. The
Company currently expects to report its actual results for the fiscal
2018 fourth quarter and full fiscal year on or about
The Company will be presenting at the
Tillys is a leading specialty retailer of casual apparel, footwear and
accessories for young men, young women, boys and girls with an extensive
assortment of iconic global, emerging and proprietary brands rooted in
an active and outdoor lifestyle. Tillys is headquartered in
Forward Looking Statements
Certain statements in this press release and oral statements made from
time to time by our representatives are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. In particular, statements regarding our future financial and
operating results, including but not limited to future comparable store
net sales, future operating income, future net income, future earnings
per share, future gross, operating or product margins, anticipated tax
rate, future impacts of legal settlements, future inventory levels,
future capital expenditures, and market share and our business and
strategy, including but not limited to expected store openings and
closings, expansion of brands and exclusive relationships, development
and growth of our e-commerce platform and business, promotional
strategy, and any other statements about our future expectations, plans,
intentions, beliefs or prospects expressed by management are
forward-looking statements. These forward-looking statements are based
on management’s current expectations and beliefs, but they involve a
number of risks and uncertainties that could cause actual results or
events to differ materially from those indicated by such forward-looking
statements, including, but not limited to, our ability to respond to
changing customer preferences and trends, attract customer traffic at
our stores and online, execute our growth and long-term strategies,
expand into new markets, grow our e-commerce business, effectively
manage our inventory and costs, effectively compete with other
retailers, enhance awareness of our brand and brand image, general
consumer spending patterns and levels, the effect of weather, and other
factors that are detailed in our most recent Annual Report on Form 10-K,
filed with the
Source: Tilly’s, Inc.
Michael L. Henry