Orange County Business Journal

Tilly’s Shares Plunge on Lowered Guidance

Kari Hamanaka Tuesday, November 20, 2012

Shares of Irvine-based Tilly’s Inc. slumped in after-hours trading Tuesday after the action sports retailer lowered its guidance for the full-year ending in January.

The company cited “recent variability in sales trends” for the cautious fourth-quarter guidance and revised outlook for the full year.

Shares plunged about 17% in after-hours trading on the news.

Tilly’s expects same-store sales for the year to be up 2.5% to 3.5%, with net income of $23.5 million to $24.3 million.

That compares with the company’s previous full-year guidance of same-store sales growth between 4% and 5%, with net income of $23.5 million to $25.1 million.

Tilly’s fourth-quarter guidance, which will include the company’s performance during the important holiday selling season, includes net income of $9.3 million to $10.3 million.

The revised outlook followed Tilly’s results for the third quarter ended Oct. 27.

Tilly’s had net income of $9.3 million, down from $12.2 million a year earlier.

Its adjusted net income was $8.3 million.

Wall Street analysts on average expected a profit of $8.4 million.

The company saw sales of $124.9 million during the October quarter, up 16.4% from a year earlier.

Analysts on average expected sales of $128.7 million.