Tilly's (TLYS) Posts Soft Holiday Sales, Comps Decline 9%
Tilly’s, Inc. TLYS reported sales numbers for the nine-week period ended Dec 30, 2023, marking the holiday period. The retail landscape this time witnessed heightened consumer activity during the Black Friday weekend before Christmas and the post-Christmas week. However, decreases in consumer activity outside these notable peaks resulted in a slightly softer-than-anticipated holiday season for Tilly’s.
Let’s Take a Closer Look
This Irvine, CA-based company highlighted that total net sales declined 7.4% to $139.7 million during the holiday shopping period compared with $150.9 million for last year’s nine-week period ended Dec 31, 2022.
Total comparable net sales, including physical stores and e-commerce, fell 9% for the 2023 holiday period. The breakdown reveals a single-digit percentage increase in Footwear, offset by single-digit decreases in Girls’ and Men’s apparel, and double-digit decreases in Boys, Women and Accessories compared to the 2022 holiday period.
Physical stores witnessed a 12.3% dip in comparable net sales during the 2023 holiday period. The Midwest, New England and the Northwest experienced a single-digit percentage decline, while double-digit declines were observed elsewhere. Net sales in physical stores represented 71.9% of the total net sales for the 2023 holiday period compared with 74.4% of the total net sales during the 2022 holiday period.
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Despite these challenges, e-commerce net sales increased by 1.6%, representing 28.1% of total net sales.
Ed Thomas, the president and CEO, remains optimistic about the company's fiscal health. "We anticipate ending fiscal 2023 with a strong cash position, a reasonable inventory level, and no debt, as we continue to focus on opportunities to improve our business in fiscal 2024." As of Jan 2, 2024, Tilly’s boasts a robust financial position with approximately $129 million in cash and marketable securities and no outstanding debt.
Outlook
Considering the holiday season’s performance and historical trends, Tilly’s anticipates fourth-quarter fiscal 2023 net sales between $169 million and $172 million, with an expected loss in the range of 20 cents-24 cents per share. Tilly’s expects to conclude the current fiscal year with 248 total stores.
Shares of this Zacks Rank #3 (Hold) company have declined 14.2% in the past three months against the industry’s rise of 17%.
3 Stocks Looking Red Hot
Here, we have highlighted three better-ranked stocks, namely Abercrombie & Fitch ANF, Hibbett HIBB and Deckers DECK.
Abercrombie & Fitch, an omnichannel specialty retailer of apparel and accessories for men, women and kids, sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year revenues suggests growth of 13.5% from the year-ago reported figures. Abercrombie & Fitch has a trailing four-quarter earnings surprise of 713%, on average.
Hibbett, an athletic-inspired fashion retailer, sports a Zacks Rank #1. The Zacks Consensus Estimate for Hibbett’s current fiscal sales suggests growth of 1.7% from the year-ago reported figure.
Hibbett has a trailing four-quarter earnings surprise of 24.2%, on average.
Deckers, a global leader in designing, marketing, and distributing innovative footwear, apparel and accessories, currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Deckers’ current fiscal sales and EPS calls for growth of 11.7% and 21.9%, respectively, from the year-ago reported figure. Deckers has a trailing four-quarter earnings surprise of 26.3%, on average.
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Tilly's, Inc. (TLYS) : Free Stock Analysis Report
