Irvine-based Tilly’s Inc. beat Wall Street expectations on revenue and earnings for the January quarter, but its shares fell about 11% to $8.80 on a downbeat forecast for the current quarter.
The teen apparel and footwear retailer’s fourth-quarter revenue was $160.2 million, a slight increase over the $159.1 million it posted during same period last year. Analysts had anticipated $159.6 million.
Its net income was $6.3 million, or 22 cents per diluted share, compared to the $2.9 million, or 10 cents per diluted share, it earned during the fourth quarter of its fiscal 2015. Analysts expected net income of about 21 cents per share.
Tilly’s fiscal 2016 revenue was $569 million, a year-over-year increase of 3.3%. Earnings totaled $11.4 million, or 40 cents per diluted share, compared to $7.5 million, or 27 cents per diluted share, in 2015. Its same-store sales, which include e-commerce, increased 0.5% for the year.
Tilly’s on Jan. 28 had “$134 million of cash and marketable securities and no debt outstanding under its revolving credit facility.”
President and Chief Executive Ed Thomas said in a statement that, “We finished fiscal 2016 with three consecutive quarters of year-over-year operating income growth and our first annual improvement in operating income of the last five years. Our strong balance sheet enabled us to reward shareholders with a $20 million special dividend in February. While we are encouraged by these results, we will continue to seek ways to improve profitability and continue our progress during fiscal 2017.”
The company, which has a market value of about $252 million, anticipates same-store sales to “decrease by a low to mid-single-digit percentage” during the first quarter and a loss per share in the range of 7 cents to 15 cents.