Tilly's closes fiscal year with quarterly growth, beating Q4 expectations
Tilly’s closes its fiscal year with its third consecutive quarter of year-over-year growth and its first improvement in operating income in five years. The end-of-the-year performance and no debt outstanding allowed for Tilly’s to reward its shareholders with a $20 million special dividend in February.
Net sales for the year increased 3.3% to $569 million from $551 million in the previous year, and comparable store sales, including e-commerce sales, increased 0.5% (comp store sales increased 1.2% in 2015).
Operating income increased 1.2% to $19.3 million, and net income was $11.4 million, or $0.40 per diluted share, versus $7.5 million, or $0.27 per diluted share in the prior year.
Tilly’s fourth quarter comparable store sales were in range of expectations at 0.1%, and earnings per diluted share surpassed expectations and last year at $0.22. Total net sales jumped 0.7% to $160.2 million, operating income was $10.4 million, or 6.5% of net sales, and net income was $6.3 million compared to $2.9 million in the prior year.
In addition, gross margin fell 80 basis points for the fourth quarter and the full year due to increased markdowns.
“While we are encouraged by these results, we will continue to seek ways to improve profitability and continue our progress during fiscal 2017," said Ed Thomas, President and Chief Executive Officer.
Tilly’s expects to start fiscal 2017 with comparable store sales decreasing by a low to mid single-digit, an operating loss between $3 million and $7 million, and a loss per share between $0.07 and $0.15.
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