On 12 March 2020, Tilly’s, Inc. (NYSE: TLYS) spotted trading -60.71% off 52-week high price. On the other end, the stock has been noted 28.32% away from the low price over the last 52-weeks. The stock changed -7.88% to recent value of $4.44. The stock transacted 251835 shares during most recent day however it has an average volume of 407.38K shares. The company has 27.58M of outstanding shares and 21.95M shares were floated in the market.
Tilly’s, Inc. (NYSE: TLYS) recently reported financial results for the fourth quarter and full year of fiscal 2019 ended February 1, 2020.
Fourth Quarter Results Overview
The following comparisons refer to operating results for the fourth quarter of fiscal 2019 versus the fourth quarter of fiscal 2018 ended February 2, 2019:
Total net sales were $172.5M, a raise of $1.9M or 1.1%, contrast to $170.6M last year. The Company ended the quarter with 240 total stores, including one RSQ-branded pop-up store, contrast to 229 total stores, including four RSQ-branded pop-up stores, last year.
Comparable store net sales, which includes e-commerce net sales, reduced 2.0% contrast to last year’s increase of 6.4%. Comparable store net sales in physical stores reduced 2.2% and represented about 80.7% of total net sales, contrast to a decrease of 0.9% and an 80.3% share of total net sales last year. E-commerce net sales reduced 1.2% and represented about 19.3% of total net sales, contrast to a raise of 49.6% and a 19.7% share of total net sales last year.
Gross profit was $52.1M, or 30.2% of net sales, contrast to $52.2M, or 30.6% of net sales last year. Product margins reduced 20 basis points as a percentage of net sales Because of increased markdowns. Occupancy costs deleveraged 70 basis points as a percentage of net sales, primarily Because of opening 11 net new stores contrast to last year and the negative comparable store net sales result. Distribution costs improved 50 basis points primarily Because of lower e-commerce shipping charges contrast to last year.
Selling, general and administrative expenses (“SG&A”) were $43.6M, or 25.3% of net sales, contrast to $41.2M, or 24.2% of net sales, last year. The $2.4M increase in SG&A was primarily Because of higher store payroll expenses of about $1.5M resulting from minimum wage increases and store count growth, higher worker’s compensation claims reserves of $0.8M, and higher marketing expenses of about $0.4M primarily relating to e-commerce. These expense increases were partially offset by lower corporate bonus provisions of $1.2M contrast to last year. Last year’s SG&A also included $0.9M in expense reductions related to negotiated resolutions of certain vendor disputes.
Operating income was $8.5M, or 4.9% of net sales, contrast to $10.9M, or 6.4% of net sales, last year. The $2.4M decrease in operating income was primarily Because of the net SG&A increase noted above relative to net sales growth noted above.
Income tax expense was $2.8M, or 30.9% of pre-tax income, contrast to $3.1M, or 26.4% of pre-tax income, last year. Income tax expense for fiscal 2019 includes about $0.5M of discrete items related to the acceleration and expiration of certain employee stock options.
Net income was $6.3M, or $0.21 per diluted share, contrast to $8.7M, or $0.29 per diluted share, last year.
Balance Sheet and Liquidity
As of February 1, 2020, the Company had $139.9M of cash and marketable securities and no debt outstanding under its revolving credit facility. This compares to $144.1M of cash and marketable securities and no debt outstanding under its revolving credit facility as of February 2, 2019. For the fourth consecutive year, the Company paid a special cash dividend to its stockholders in February 2020. This year’s special cash dividend was about $29.7M in the aggregate, or $1 per share.
Fiscal 2020 First Quarter Outlook
Through March 10, 2020, total comparable store net sales, including e-commerce, have increased by a low single-digit percentage with comparable store net sales in stores slightly negative and e-commerce net sales up high single-digits on a percentage basis. Given the unpredictability of the effects of the coronavirus on, among other things, consumer behavior, store traffic, production capabilities, timing of deliveries, our people, economic activity and the market generally in the coming weeks and months, the Company is unable to provide specific earnings guidance at this time.
Its earnings per share (EPS) expected to touch remained -9.40% for this year while earning per share for the next 5-years is expected to reach at 12.00%. TLYS has a gross margin of 30.10% and an operating margin of 4.60% while its profit margin remained 3.70% for the last 12 months. According to the most recent quarter its current ratio was 1.4 that represents company’s ability to meet its current financial obligations. The price moved ahead of -8.54% from the mean of 20 days, -5.80% from mean of 50 days SMA and performed -41.94% from mean of 200 days price. Company’s performance for the week was -3.27%, -10.66% for month and YTD performance remained -59.11%.