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Tilly's (TLYS) Posts Dismal Holiday Sales, Comps Decline 14.4%

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Tilly’s, Inc. (TLYS - Free Report) reported dismal holiday sales numbers as inflationary pressure hurt consumer spending activity. This Irvine, CA-based company highlighted that total net sales declined 12.9% to $150.9 million during the holiday shopping period — the nine-week period ended Dec 31, 2022 — compared with $173.3 million for the last year’s nine-week period ended Jan 1, 2022.

Total comparable net sales, including physical stores and e-commerce, fell 14.4% for the 2022 holiday period against an increase of 14.1% in the year-ago period.

Let’s Take a Closer Look

We note that comparable net sales in physical stores declined 15.3% for the 2022 holiday period against an increase of 23.2% during the 2021 holiday period. The metric decreased by double-digit percentages in all geographic markets.

Net sales in physical stores represented 74.4% of the total net sales for the 2022 holiday period compared with 74.5% of the total net sales during the 2021 holiday period.

Meanwhile, e-commerce net sales dropped 12.8% during the 2022 holiday period compared with a decline of 5.7% in the 2021 holiday period. E-commerce net sales represented 25.6% of the total net sales for the 2022 holiday period.

 

Zacks Investment Research
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Outlook

Considering the holiday season’s performance and recent historical trends, Tilly’s now anticipates fourth-quarter fiscal 2022 net sales in the range of $178 million-$180 million and a loss per share in the band of 1-4 cents. Tilly’s expects to conclude the current fiscal year with 249 total stores.

Shares of this Zacks Rank #3 (Hold) company have risen 16.5% in the past three months compared with the industry’s growth of 20.2%.

3 Stocks Looking Red Hot

Here we have highlighted three better-ranked stocks, namely Build-A-Bear Workshop (BBW - Free Report) , Capri Holdings (CPRI - Free Report) and Ulta Beauty (ULTA - Free Report) .

Build-A-Bear Workshop, which operates as a multi-channel retailer of plush animals and related products, 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 Build-A-Bear Workshop’s current financial-year revenues and EPS suggests growth of 11.9% and 21.5%, respectively, from the year-ago reported figures. Build-A-Bear Workshop has a trailing four-quarter earnings surprise of 14.7%, on average.

Capri Holdings, a global fashion luxury group, carries a Zacks Rank #2 (Buy). The expected EPS growth rate for three to five years is 11.8%.

The Zacks Consensus Estimate for Capri Holdings’ current financial-year revenues and EPS suggests growth of 1% and 10.6%, respectively, from the year-ago reported figures. Capri Holdings has a trailing four-quarter earnings surprise of 21%, on average.

Ulta Beauty currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 13.8%.

The Zacks Consensus Estimate for Ulta Beauty’s current financial-year sales suggests growth of 15.7% from the year-ago period. This beauty retailer and the premier beauty destination for cosmetics, fragrance, skincare products, hair care products and salon services has a trailing four-quarter earnings surprise of 26.2%, on average.

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