Tilly's announces mixed Q2 results with an eye on BTS success
Tilly's announced its second quarter financial results for 2016 with net sales at $136.4 million for the quarter ending July 30, 2016, a 5% increase over last year.
Comparable sales, including e-commerce sales, increased 0.9% over last year's Q2.
“Our second quarter comp sales and operating income exceeded our outlook ranges and we ended the quarter with inventory down 7% on a per square foot basis," stated Ed Thomas, President and Chief Executive Officer.
Total net sales for the first half of 2016 are up 2.6% at $256.6 million, however comps have decreased for the first half of 2016 compared to the first half of 2015 by 1.4%.
Gross profit is lower this year than last, with 2016's gross profit at $71.4 million compared to $72.6 million last year. Gross margin is also lower than last year's first half at 27.8% this year compared to 2015's 29%.
Also noteworthy is operating loss of this year compared to last year's operating profit. Operating loss this year so far was $1.7 million, or 0.7% of net sales, compared to operating income of $3.2 million, or 1.3% of net sales, last year.
Thomas continued, "We are focused as a management team on continuing these directional improvements. Our back-to-school results have been mixed, but we believe our merchandise assortment is well positioned for the season.”
Tilly's is forecasting Q3 comp store sales to be in the range of flat to -4%. The company is also forecasting operating income to range from $3.5 million to $6.5 million with a strong BTS season anticipated.
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