Tilly's, Inc., the action sports chain, reported that based on the results for the holiday period, it now expects fourth quarter results to be in the mid range of its previously communicated outlook for both comparable store sales and earnings.
In reporting third quarter results on Nov. 26, Tilly's said that if the weak traffic trends and highly promotional environment in teen retail at the time continued, it expected fourth quarter comparable store sales to decline in the mid- to high-single digits, and net income to be in the range of $4.2 million to $6.0 million, or 15 to 21 cents per diluted share.
Fourth quarter 2012 adjusted net income was $8.9 million, or $0.32 per diluted share, which includes a 40 percent effective tax rate to make that quarter comparable.
"We anticipated the challenging retail environment in the fourth quarter due to a variety of factors and managed our business accordingly," said Daniel Griesemer, president and CEO. "As a result, we achieved sales in line with our expectations and maintained healthy product margins during the holiday period. I am proud of how our team continues to execute in this environment, including, effectively managing our inventory to exit the holiday period as planned."
Tilly' operated 195 stores as of Jan. 13.
