Orange County Business Journal

Tilly's Shares Off on Q1, Full-Year Outlook

Kari Hamanaka Thursday, March 21, 2013

Shares of Irvine-based action sports retailer Tilly's Inc. slumped, a day after the company released its outlook for the current quarter and full-year.

The company, which counts 168 stores, were down about 8% in afternoon trading Thursday to a market value of $347.95 million

The retailer said the current quarter, which ends next month, got off to a slow started but has rebounded in recent weeks.

Tilly’s said it remains cautious and expects same-store sales increases to in the low- to mid-single digits for the current quarter. The retailer saw a 4.3% increase in the year-ago period.

Net income in the current quarter is expected to be between $1.1 million and $2 million.

That's down from $3.2 million in the year-ago period, and off from the $3.9 million analysts on average expected.

Tilly's cited continuing economic uncertainty as the reason for projecting adjusted net income of $21.5 million to $23 million for full-year 2013. That compares with adjusted net income of $22.9 million in the prior fiscal year.

The outlook followed the company’s results for the fourth quarter ended Feb. 2.

Tilly’s saw adjusted net income rise 10.8% to $8.9 million.

Analysts on average expected a profit of $8.3 million for the fourth quarter.

Revenue during the quarter rose 14.5% to $140.8 million. That’s off slightly from the consensus estimate of $141.1 million.

Same-store sales for the quarter were down 1%.