Tilly’s Falls on Weak OutlookWednesday, March 19, 2014
Irvine-based Tilly's Inc. shares fell in after-hours trading Wednesday after the retailer said it expects business to be tough in the current quarter.
Tilly's shares were down about 6% to a market value of $358.57 million.
The company operates a chain of nearly 200 stores selling clothing, footwear and accessories inspired by action sports, music and art.
Tilly's said it expects "volatile and weak traffic trends and a highly promotional environment in teen retail" to continue for its current quarter. It said it expects comparable store sales for the period to be down in the mid-single digits.
The company projected net income for the current quarter in the range of flat to $1.14 million. That's down from the $2.3 million it reported a year ago and off from the $2.56 million analysts had projected.
Tilly's did not provide revenue guidance. Analysts expect net sales of $118.67 million.
The guidance followed results for the quarter ended Feb. 1 that included net income of $5.4 million, edging past the $5.12 million Wall Street analysts expected.
February quarter revenue fell less than 1% to $139.9 million, slightly higher than the $139.75 million analysts projected.
Quarterly same-store sales were off 4.9%.
“While fourth-quarter results were as expected, we are not satisfied with this level of financial performance,” said Tilly's President and Chief Executive Daniel Griesemer in a statement. “I am, however, pleased with how we navigated the challenging retail environment, which reflects the disciplined execution by our team.”
Tilly's had full-year net sales of $495.8 million, up 6.1%.
The company's net income fell to $18.1 million for the fiscal year, compared to $23.9 million a year ago.
Comparable sales for the year rose 1.9%.