Specialty retailer of West Coast inspired apparel & footwear, Tilly’s said in the third fiscal quarter ended November 1, 2014, its net sales dropped 6 per cent from a year ago quarter.
In the thirteen weeks period to November 1, 2014, net sales totalled $131.3 million, down 6 per cent from $123.8 million in the third quarter of 2013.
Comparable store sales, which include e-commerce sales, declined 1.2 per cent compared to the same 13-week period in 2013.
However, Tilly’s which operates 212 stores also reported that its gross profit increased 7.1 per cent to $40.5 million as against $37.8 million from corresponding third quarter last year.
Gross margin as a percentage of sales in the reporting quarter too rose to 30.9 per cent as against 30.6 per cent in the third quarter of 2013, mainly from a 30 basis point increase in product margins.
In the period under review, operating income totalled $8.6 million compared to $10.2 million in the prior year third quarter.
Net income for the third quarter reached $5.1 million, or $0.18 at an effective tax rate of 40.2 per cent versus net income in the same quarter of 2013 of $6.1 million at an effective tax rate of 40.1 per cent.
As of November 1, 2014, the clothing retailer had $61.3 million of cash and marketable securities and no borrowings or debt outstanding on its revolving credit facility.
Tilly’s expects fourth quarter of 2014 comparable store sales to be flat to negative low single digits, and net income per diluted share to be in the range of $0.15 to $0.19.
Fourth quarter 2013 net income per diluted share was $0.19, based on a weighted average diluted share count of 28.2 million shares.
“We are pleased with the meaningful progress we are making on our initiatives to increase sales and profitability as our third quarter results exceeded expectations,” CEO Daniel Griesemer said.
He added, “Our product offering continued to resonate well with our customer through November, giving us confidence that we are well positioned for the remaining holiday selling season.” (AR)
