Tilly’s third quarter net profit accelerates, sales increase 46.9%
For the third quarter, total net sales of Tilly’s, Inc. were $ 206.1 million, an increase of $ 65.8 million or 46.9%. Net income improved to $ 20.8 million or 66 cents per diluted share from $ 2.1 million or 7 cents per diluted share last year.
“Fiscal 2021 continues to be a banner year for us so far, which we believe has been driven by our strong product mix, an improved consumer spending environment, as well as the hard work and dedication of our entire team, ”said Ed Thomas, the president and chief executive officer of the company in a statement.
Tilly’s third quarter operating results
Net sales of physical stores were $ 165.3 million, an increase of $ 60.7 million or 58.1%. Net e-commerce sales were $ 40.8 million, an increase of $ 5.1 million or 14.3%.
Comparable total net sales for the third quarter of fiscal 2021 compared to the third quarter of fiscal 2019 before the pandemic increased by 27.4%. Physical store comparable net sales increased 18.3%, with increases in all geographies, and e-commerce net sales increased 80.5%.
Gross profit for the quarter was $ 76.7 million or 37.2 percent of net sales compared to $ 40.7 million, or 29 percent of net sales, last year.
Operating income improved to $ 29 million or 14.1% of net sales, from $ 3.5 million or 2.5% of net sales.
Tilly’s financial results for the nine-month period
Total net sales for the nine-month period were $ 571.2 million, an increase of $ 217.8 million or 61.6%. Net sales of physical stores were $ 457.6 million, an increase of $ 222.2 million or 94.4%.
Net e-commerce sales were $ 113.6 million, down $ 4.4 million or 3.7% from $ 118.1 million last year. Total comparable net sales for the period compared to the first thirty-nine weeks of fiscal 2019 pre-pandemic increased 22.5% with physical store comparable net sales up 13.7% and sales net e-commerce up 74.5%.
Gross margin was $ 206.3 million or 36.1% of net sales, compared to $ 83.9 million or 23.7% of net sales last year. Operating income improved to $ 70.3 million or 12.3% of net sales from an operating loss of $ 17.2 million or 4.9% of net sales, the last year. Net income improved to $ 52.2 million, or $ 1.68 per diluted share, from a net loss of $ 10 million, or 34 cents per share, last year.
Tilly’s update on the fourth quarter outlook
The company said the fourth quarter of last year was the first full period since the start of the pandemic in which the company was fully operational. Total comparable net sales as of November 30, 2021 increased 19.6% from a year ago, with same-store net sales increases for physical stores of 27.6% and e-commerce of 3.9%.
Based on current and historical trends, and assuming all of the company’s stores and e-commerce will remain in operation through the fourth quarter and global supply chain challenges will not impact Significant negative on the company’s fiscal 2021 fourth quarter net sales results, the company expects its fourth quarter net sales to be between approximately $ 210 million and $ 215 million and that its diluted earnings per share is between 42 and 50 cents.
In fiscal 2022, Tilly’s plans to open approximately 15-20 new stores in existing markets, primarily in California, Texas and the Northeast. The company currently plans to have 243 stores in total at the end of fiscal 2021, up from 238 at the end of fiscal 2020.