Got a tip?: tips@bullonthestreet.com
Email: info@bullonthestreet.com

Tilly’s Inc Bring Hope to Retail

On Wednesday, August 29, 2018, Tilly’s Inc. (NYSE:TLYS) reported a strong second quarter producing expectation-beating earnings per share.  The retailer is still managing to see sizable growth whilst many others are struggling to cope with the exponential rise of e-commerce.  Notably, this quarter is generally a solid one for companies like Tilly’s due to the back-to-school phenomena.  CEO Ed Thomas states that Tilly’s second-quarter of 2018 has seen the “strongest comparable store net sales result since the third quarter of fiscal 2016.”

TLYS shares have seen considerable growth this year, opening at $13.67 a share on the 2nd of February, and now sitting comfortably at $20.40 a share.  Shares today opened up trading 13% higher than yesterdays close of $18.00 a share.

In recent years, we’ve seen retail giants take huge blows from the rise of e-commerce and companies such as Amazon.  Companies across the board in different retail sectors like Sears, JC Penny, and Lowes, have all shown struggles of adapting to the new market.  These businesses need to develop innovative and detailed e-commerce strategies to compete with the larger-fish like Amazon.

The company reported a net sales increase of 13.4% year-over-year, dialing in at $157.4 million for the second-quarter.  Tilly’s non-GAAP earnings per share for the second-quarter was expected to be $0.26 per share, but they reported beating estimates by $0.03 at $0.29 per share!  For perspective, this is up from $0.11 per share year-over-year.

Tilly’s has managed to still show sizable growth, noting that they have begun to fine-tune their e-commerce channel.  From the years 2013 to 2016, Tilly’s e-commerce sales saw growth of about 10% a year on average.  In 2017, this growth slowed down leading to a 0.8% decrease in e-commerce sales year-on-year.  In their earnings call on Wednesday, CEO Ed Thomas mentioned that the company believes their e-commerce business is “back on track.”

Leave a Comment