Why Tilly's Shares Are Plunging To New 52-Week Lows

Retailer Tilly’s Inc TLYS reported fourth quarter and full fiscal year 2021 financial results after market close Thursday. The stock fell after the company reported worse-than-expected EPS results and issued Q1 EPS and sales guidance below analyst estimates. Here’s the key details.

What Happened: Tilly’s reported fourth quarter revenue of $204.5 million, beating a street estimate of $203.95 million according to Benzinga Pro. Fourth quarter revenue was up 14.9% year-over-year.

The company reported earnings per share of 38 cents in the fourth quarter, missing a street estimate of 41 cents per share.

Sales from physical stores were $152.2 million in the fourth quarter, up 24.2% year-over-year. The company ended the fourth quarter with 241 stores open.

Ecommerce sales in the fourth quarter were $52.3 million, down 5.6% year-over-year.

“Each quarter of fiscal 2021 set company records for net sales and operating income,” Tilly’s CEO Ed Thomas said.

Full fiscal year sales were $775.7 million, up 46% year-over-year. Physical store sales of $609.7 million were up 70.4% year-over-year. Ecommerce sales were $165.9 million for the full fiscal year, down 4.3% year-over-year.

The company ended the year with $139.2 million in cash and had no debt outstanding.

What’s Next: Tilly’s said its first quarter comparable net sales were up 10.4% through Mar. 6, 2022.

The company expects sales to decelerate further into the first quarter and later in the full fiscal year 2022.

“Fiscal 2022 is off to a good start, but our comparisons to last year will get much tougher as we being to anniversary last year’s pent-up demand and federal stimulus payments,” Thomas said.

Tilly’s estimates first quarter sales will be in range of $143 million to $148 million, coming in shy of a street estimate of $166 million.

The company sees first quarter earnings per share in a range of $0.00 to $0.05.

Tilly’s expects to open 15 to 20 new stores in fiscal 2022, with California, Texas and the Northeast cited as markets targeted.

TLLY Price Action: Tilly’s shares are down 21.22% to $9.65 versus a 52-week range of $10.53 to $17.80.