Shares of Tilly’s Inc. fell 22% to about $8 and a market cap of about $233 million in after-hours trading Wednesday after the retailer posted a 74 % drop in earnings for the first quarter that ended May 3.
The Irvine-based action-sports retailer reported earnings of $591,000 on sales of $111.1 million for the period.
It had $2.3 million in earnings on $109.1 million in revenue for the same period last year.
Overall sales rose 1.8%, while same-store and e-commerce sales were down 6.8%. The company opened three stores during the reporting period, bringing the chain’s total to 198. E-commerce sales totaled $12.7 million, a 1.2% year-over-year increase.
“Earnings results were in line with our expectations and reflect the continuation of a tough retail environment and the planned reduction in our clearance merchandise, which put pressure on our comparable store sales,” Daniel Griesemer, company’s president and chief executive, said in a news release.
Tilly’s anticipates second quarter comparable store sales to decline “in the high single digits,” if expected “weak traffic trends and a highly promotional environment in teen retail” continue.