Tilly’s Inc. reported on Wednesday its first positive comparable net sales since fiscal year 2021.
Shares of Tilly’s shot up 25% to $2.50 in after hours trading following the retailer’s fiscal third quarter results that showed comparable net sales, a key retail metric, increased 2%.
New Chief Executive Nate Smith said that Tilly’s last reported comparable sales growth in the fourth quarter of fiscal 2021 “and that positive momentum has continued into this year’s fourth quarter.”
The Irvine-based apparel company generated total net sales of $139.6 million, down 2.7% compared to a year ago (NYSE: TLYS). This beat one analyst’s forecast of a 4.6% decrease to $136.9 million for third quarter revenue.
“Our third quarter results exceeded our expectations, which we believe demonstrates the effectiveness of our initiatives and our team’s ability to execute,” Smith said in a statement.
Tilly’s now expects net sales in the range of approximately $146 million to $151 million for the fiscal fourth quarter and an increase of comparable net sales ranging between 4% to 8%.
