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Tilly's (TLYS) to Report Q2 Earnings: What's in the Offing?
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Tilly's, Inc. (TLYS - Free Report) is likely to witness a decline in the top line when it reports second-quarter fiscal 2022 numbers on Sep 1 after market close. The Zacks Consensus Estimate for revenues is pegged at $171.9 million, suggesting a decline of 14.9% from the prior-year reported figure.
The Zacks Consensus Estimate for quarterly earnings per share has been stable at 17 cents over the past 30 days. It suggests a sharp decline from the earnings of 66 cents reported in the year-ago period. This specialty retailer of casual apparel, footwear, accessories and hard goods has a trailing four-quarter earnings surprise of 31.2%, on average.
Key Factors to Note
The soaring inflation and high energy costs continue to impact consumers’ discretionary spending. On its last earnings call, Tilly's highlighted that second-quarter comparable net sales through May 30, 2022, including both physical stores and e-commerce, declined 17%. It guided second-quarter fiscal 2022 net sales between $170 million and $175 million, which suggests a significant decline from the $202 million reported in the year-ago period. This is due to lapping a government stimulus and pent-up demand last year.
We believe that a more normalized markdown rate compared with the last year's high level of full-price selling is likely to have weighed on product margins. Management foresees a contraction of approximately 200 to 250 basis points in the said metric during the second quarter. It also expects a deleverage of roughly 270 to 320 basis points in buying, distribution and occupancy costs. Tilly's projected SG&A expenses in the band of $47 million-$48 million.
The aforementioned factors are likely to have weighed on the operating income and, in turn, the bottom line. Tilly's guided operating income in the bracket of $6 million-$8.5 million, down from $26.4 million. It estimated second-quarter earnings in the range of 14-20 cents a share, meaningfully down from the 66 cents reported in the year-ago period.
Despite these headwinds, we cannot ignore Tilly's efforts to mitigate challenges. The company’s consumer-centric approach, product initiatives, prudent inventory management and focus on improving distribution efficiencies might have provided some cushion.
Our proven model does not conclusively predict an earnings beat for Tilly's this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Tilly's has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Stocks With the Favorable Combination
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +24.88% and a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly earnings per share of $3.32 suggests an increase of 4.1% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's General’s top line is anticipated to have risen year over year. The consensus mark for CASY’s revenues is pegged at $4.6 billion, indicating an increase of 44.4% from the figure reported in the year-ago quarter. Casey's General has a trailing four-quarter earnings surprise of 5.8%, on average.
Dave & Buster's Entertainment (PLAY - Free Report) currently has an Earnings ESP of +2.97% and a Zacks Rank #3. The company is likely to register a decline in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.01 suggests a decline of 5.6% from the year-ago quarter.
Dave & Buster's Entertainment’s top line is expected to have increased year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $432.3 million, which indicates an increase of 14.5% from the figure reported in the prior-year quarter. PLAY has a trailing four-quarter earnings surprise of 41.1%, on average.
Campbell Soup Company (CPB - Free Report) currently has an Earnings ESP of +0.60% and a Zacks Rank #3. The company is expected to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of 56 cents suggests an increase of 1.8% from the year-ago quarter.
Campbell Soup’s top line is anticipated to have increased year over year. The consensus mark for CPB’s revenues is pegged at $1.98 billion, indicating an increase of 5.5% from the figure reported in the year-ago quarter.
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Tilly's (TLYS) to Report Q2 Earnings: What's in the Offing?
Tilly's, Inc. (TLYS - Free Report) is likely to witness a decline in the top line when it reports second-quarter fiscal 2022 numbers on Sep 1 after market close. The Zacks Consensus Estimate for revenues is pegged at $171.9 million, suggesting a decline of 14.9% from the prior-year reported figure.
The Zacks Consensus Estimate for quarterly earnings per share has been stable at 17 cents over the past 30 days. It suggests a sharp decline from the earnings of 66 cents reported in the year-ago period. This specialty retailer of casual apparel, footwear, accessories and hard goods has a trailing four-quarter earnings surprise of 31.2%, on average.
Key Factors to Note
The soaring inflation and high energy costs continue to impact consumers’ discretionary spending. On its last earnings call, Tilly's highlighted that second-quarter comparable net sales through May 30, 2022, including both physical stores and e-commerce, declined 17%. It guided second-quarter fiscal 2022 net sales between $170 million and $175 million, which suggests a significant decline from the $202 million reported in the year-ago period. This is due to lapping a government stimulus and pent-up demand last year.
We believe that a more normalized markdown rate compared with the last year's high level of full-price selling is likely to have weighed on product margins. Management foresees a contraction of approximately 200 to 250 basis points in the said metric during the second quarter. It also expects a deleverage of roughly 270 to 320 basis points in buying, distribution and occupancy costs. Tilly's projected SG&A expenses in the band of $47 million-$48 million.
The aforementioned factors are likely to have weighed on the operating income and, in turn, the bottom line. Tilly's guided operating income in the bracket of $6 million-$8.5 million, down from $26.4 million. It estimated second-quarter earnings in the range of 14-20 cents a share, meaningfully down from the 66 cents reported in the year-ago period.
Despite these headwinds, we cannot ignore Tilly's efforts to mitigate challenges. The company’s consumer-centric approach, product initiatives, prudent inventory management and focus on improving distribution efficiencies might have provided some cushion.
Tilly's, Inc. Price, Consensus and EPS Surprise
Tilly's, Inc. price-consensus-eps-surprise-chart | Tilly's, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Tilly's this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Tilly's has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Stocks With the Favorable Combination
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +24.88% and a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly earnings per share of $3.32 suggests an increase of 4.1% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's General’s top line is anticipated to have risen year over year. The consensus mark for CASY’s revenues is pegged at $4.6 billion, indicating an increase of 44.4% from the figure reported in the year-ago quarter. Casey's General has a trailing four-quarter earnings surprise of 5.8%, on average.
Dave & Buster's Entertainment (PLAY - Free Report) currently has an Earnings ESP of +2.97% and a Zacks Rank #3. The company is likely to register a decline in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.01 suggests a decline of 5.6% from the year-ago quarter.
Dave & Buster's Entertainment’s top line is expected to have increased year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $432.3 million, which indicates an increase of 14.5% from the figure reported in the prior-year quarter. PLAY has a trailing four-quarter earnings surprise of 41.1%, on average.
Campbell Soup Company (CPB - Free Report) currently has an Earnings ESP of +0.60% and a Zacks Rank #3. The company is expected to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of 56 cents suggests an increase of 1.8% from the year-ago quarter.
Campbell Soup’s top line is anticipated to have increased year over year. The consensus mark for CPB’s revenues is pegged at $1.98 billion, indicating an increase of 5.5% from the figure reported in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.