Tilly’s Shares Plunge on Lowered GuidanceWednesday, November 21, 2012
Shares of Irvine-based Tilly’s Inc. slumped Wednesday, a day 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 were down about 17% in midday trading Wednesday.
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.