Why Tilly's (TLYS) Shares Are Sliding Today - Tilly's (NYSE:TLYS)

Tilly's Inc TLYS reported a first-quarter FY23 sales decline of 15.2% year-on-year to $123.64 million, missing the analyst consensus estimate of $124.75 million.
Total comparable net sales, including both physical stores and e-commerce, decreased by 17.5%.
Physical stores sales declined 16.7% to $97.8 million and e-commerce sales fell 8.7% to $25.8 million.
Gross profit plunged 40.8% to $25.9 million, and the gross margin contracted 910 basis points to 21%.
The company incurred an operating loss of $(17.3) million in the quarter compared to an income of $1.1 million.
Tilly's held $93.4 million in cash and equivalents as of April 29, 2023.
EPS of $(0.40) missed the analyst consensus estimate of $(0.32).
"We believe the highly uncertain and inflationary economic environment continues to have a detrimental impact on our pre-teen, teen, and young adult customer demographic," said President and CEO Ed Thomas.
Outlook: Tilly's sees Q2 sales of $148 million - $158 million (consensus $160.57 million), translating to an estimated comparable net sales decrease of 10%-15%. It expects a Q2 EPS of $(0.13) - $(0.27) against the Street view of $0.00.
Price Action: TLYS shares are trading higher by 11.86% at $6.51 on the last check Friday.

Why Tilly's Shares Are Sliding Today