Why Tilly's (TLYS) Stock Is Falling Today
What Happened:
Shares of young adult apparel retailer Tilly’s (NYSE:TLYS) fell 6.9% in the morning session after the company reported fourth-quarter results with EPS falling significantly short of Wall Street estimates. In addition, its revenue and EPS guidance for next quarter missed analysts' expectations as its same-store sales have already declined 13.4% as of March 12, 2024. The company highlighted some of the drivers of the weak results, including 1.) Persistent inflationary pressures. 2.) Record levels of credit card debt. 3. A shift in consumer preferences. In addition, the company called out a slow start to Q1'2024 due to "a couple of atmospheric river storms that hit our home state of California, particularly hard, in the first 2 weeks of February." This should impact store traffic and sales performance during the quarter. On the other hand, revenue narrowly outperformed Wall Street's estimates. Overall, the results could have been better.
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What is the market telling us:
Tilly's's shares are not very volatile than the market average and over the last year have had only 5 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Tilly's is down 9.8% since the beginning of the year, and at $6.81 per share it is trading 24.6% below its 52-week high of $9.03 from August 2023. Investors who bought $1,000 worth of Tilly's's shares 5 years ago would now be looking at an investment worth $595.01.
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