Earnings Review and Free Research Report: Tilly's Adjusted EPS Zoomed 120%

Research Desk Line-up: Tailored Brands Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 13, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Tilly's, Inc. (NYSE: TLYS), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TYLS, following the Company's disclosure of its second quarter fiscal 2017 financial results on August 23, 2017. The clothing and accessories retailer outperformed top- and bottom-line expectations and provided guidance for the upcoming quarter. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Apparel Stores industry. Pro-TD has currently selected Tailored Brands, Inc. (NYSE: TLRD) for due-diligence and potential coverage as the Company announced on September 07, 2017, its consolidated financial results for Q2 FY17 which ended on July 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Tailored Brands when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TYLS; also brushing on TLRD. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the second quarter ended July 29, 2017, Tilly's total net sales were $138.8 million, an increase of 1.8% from $136.4 in Q2 2016. The Company's comparable store sales, which included ecommerce sales, increased 2.1% in the reported quarter. Tilly's net sales exceeded analysts' expectations of $136 million.

For Q2 2017, Tilly's gross profit was $40.9 million, reflecting an increase of 5.4% from $38.8 million in Q2 2016. The Company's gross margin, or gross profit as a percentage of net sales, increased to 29.5% in the reported quarter from 28.5% in the year ago same period. The 100 basis point increase in gross margin was attributable to a 60 basis point increase in product margins as a result of reduced markdowns, and a 40 basis point improvement in buying, distribution, and occupancy costs due to leveraging these costs against higher total sales.

Tilly's GAAP selling, general, and administrative expenses (SG&A) were $42.2 million, or 30.4% of net sales, in Q2 2017 compared to $36.6 million, or 26.8% of net sales, in Q2 2016. This increase was attributable to a $6.2 million legal provision. On a non-GAAP basis, the Company's SG&A decreased to $36.0 million, or 25.9% of net sales, primarily due to reduced marketing spend and lower non-cash store impairment charges.

For Q2 2017, Tilly's recorded operating loss of $1.2 million, or 0.9% of net sales, on a GAAP basis compared to operating income of $2.2 million, or 1.6% of net sales, in Q2 2016. The decline in operating results was attributable to the $6.2 million legal provision, offset by the combination of the Company's comparable store sales growth, gross margin increase, and other SG&A reductions. On a non-GAAP basis, Tilly's operating income was $4.9 million, or 3.5% of net sales.

On a GAAP basis, Tilly's reported net loss of $0.6 million, or $0.02 per share, compared to net income of $1.4 million, or $0.05 per diluted share, in Q2 2016. On a non-GAAP basis, the Company's net income was $3.1 million, or $0.11 per diluted share. Tilly's earnings beat Wall Street's expectations of $0.05 per share.

Balance Sheet and Liquidity

As of July 29, 2017, Tilly's had $109.6 million of cash and marketable securities and no debt outstanding under its revolving credit facility. In February 2017, the Company paid a first-ever special cash dividend to its stockholders of approximately $20.1 million in the aggregate. This compares to $96.4 million of cash and marketable securities and no debt outstanding as of July 30, 2016.

Outlook

For Q3 2017, Tilly's is forecasting comparable store sales to be in the range of flat to up low single-digits on a percentage basis, operating income to be in the range of approximately $9.0 million to $11.5 million, and income per diluted share to be in the band of $0.19 to $0.24. This compares to operating income of $10.7 million and income per diluted share of $0.22 for Q3 2016. The Company is anticipating effective tax rate of approximately 40% and weighted average shares of approximately 29 million.

Stock Performance

At the closing bell, on Tuesday, September 12, 2017, Tilly's stock rose 1.31%, ending the trading session at $11.58. A total volume of 79.06 thousand shares have exchanged hands. The Company's stock price advanced 12.98% in the last three months, 29.10% in the past six months, and 23.13% in the previous twelve months. The stock is trading at a PE ratio of 27.70 and currently has a market cap of $335.01 million.

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