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Tilly's (TLYS) to Report Q3 Earnings: What's in the Cards?

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Tilly’s, Inc. (TLYS - Free Report) is likely to register a top- and bottom-line decrease from the respective year-ago fiscal quarter’s tallies when it reports third-quarter fiscal 2022 numbers on Dec 1, after the closing bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $166.5 million, indicating a decline of 19.2% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for the quarterly earnings currently stands at 8 cents a share for the fiscal third quarter, suggesting a decrease from 66 cents reported in the year-earlier fiscal quarter. The consensus mark has been stable in the past 30 days.

This specialty retailer of apparel, footwear and accessories boasts a trailing four-quarter earnings surprise of 18.5%, on average.

Key Aspects to Note

Tilly’s third-quarter results might have been hurt by the impacts of operating in a tough environment comprising inflationary pressures, evolving customer spending behaviors and ongoing supply-chain cost pressures. These along with any deleverage in selling and administrative expenses and other costs might hurt its overall results in the quarter under review.

On its last earnings call, management had forecast some deceleration in the latter half of the fiscal third quarter. It projected total net sales in the bracket of roughly $165-$170 million for the quarter under review. Further, TLYS anticipated SG&A expenses of $46-$47 million, an operating income of $1.9-$4.6 million and earnings per share of 5-11 cents. Tilly’s recorded net sales of $206.1 million and earnings of 66 cents a share in the third quarter of fiscal 2021.

However, management has been working toward enhancing Tilly’s’ business and delivering growth. TLYS’ home category is also performing well. Additionally, its e-commerce initiatives, including plans to launch its enhanced mobile App, appear encouraging. TLYS’ efforts to boost merchandise assortment and expand stores are other positives. These factors might have provided some cushion to its quarterly performance.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Tilly’s this time around. 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. But that’s not the case here as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Tilly's, Inc. Price, Consensus and EPS Surprise

Tilly's, Inc. Price, Consensus and EPS Surprise

Tilly's, Inc. price-consensus-eps-surprise-chart | Tilly's, Inc. Quote

Tilly’s currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks Poised to Beat Estimates

Here are three companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:

lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +1.50% and a Zacks Rank #2. LULU is likely to register an increase in the bottom line from the year-ago fiscal quarter’s reported figure when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at $1.95 per share over the past 30 days, suggesting 20.4% growth from the year-ago fiscal quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

lululemon athletica’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.80 billion, suggesting a 24.4% rise from the figure reported in the prior-year fiscal quarter. LULU delivered an earnings beat of 10.4%, on average, in the trailing four quarters.

Dollar General (DG - Free Report) has an Earnings ESP of +2.35% and a Zacks Rank of 3, currently. DG is likely to register top-line growth from the year-ago fiscal quarter’s tally in its third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, suggesting 10.7% growth from the figure reported in the prior-year fiscal quarter.

The Zacks Consensus Estimate for Dollar General’s earnings for the fiscal third quarter is pegged at $2.54 per share, suggesting 22.1% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.

Dollar Tree (DLTR - Free Report) has an Earnings ESP of +6.57% and a Zacks Rank of 3, currently. DLTR is likely to register top-line growth from the year-earlier fiscal quarter’s actuals when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.83 billion, suggesting 6.5% growth from the figure reported in the prior-year fiscal quarter.

The Zacks Consensus Estimate for Dollar Tree’s earnings for the fiscal third quarter is pegged at $1.16 per share, suggesting 20.8% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. DLTR delivered an earnings beat of 8.6%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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