Tilly's posts 2Q profit as sales grow 17 percent

Tilly's turns 2nd-qtr profit that surpasses estimates; sales fall short of Wall Street views

Associated Press

IRVINE, Calif. (AP) -- Retailer Tilly's said Wednesday it turned a profit in the fiscal second quarter as its sales climbed.

Tilly's net income was greater than Wall Street expected, although sales measurements didn't reach analyst estimates.

The company said it earned $4.3 million, or 15 cents per share, over the three months ended Aug. 3. In the year-ago quarter Tilly's reported a loss of $1.2 million, or 4 cents per share. Its revenue grew 17 percent, to $123 million from $105.1 million.

Analysts were expecting net income of 13 cents per share and $126.2 million in revenue, according to FactSet.

The company said sales at stores open at least a year fell 0.5 percent. Analysts had forecast growth of 1.4 percent. Online sales, which are included in that measurement, rose 30 percent to $12.8 million.

Sales at locations open at least a year is a measure considered an important indicator of retailer health because it excludes results from stores that opened or closed within the last year.

Tilly's Inc. had 182 stores at the end of the quarter. The company maintained its estimates for the full fiscal year, calling for net income of 76 to 82 cents per share. It said sales at stores open at least a year will grow in the low single digits. Tilly's is forecasting net income of 19 to 22 cents per share in the third quarter and said sales at stores open at least a year will be unchanged from a year ago.

Analysts expect net income of 82 cents per share for the year and 26 cents per share in the current quarter. On average they say sales at stores open at least a year will grow 1.8 percent for the full year and 1.1 percent in the third quarter.

Tilly's also said Jennifer Ehrhardt, its vice president of finance, will become its chief financial officer Sept. 14. The company announced in May that current CFO Bill Langsdorf was planning to retire. Langsdorf has been CFO of Tilly's since February 2007.

Shares of Tilly's climbed $1.03, or 8.2 percent, to $13.67 on Wednesday. They tacked on 3 cents in aftermarket trading following the release of the earnings report.

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