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Factors Likely to Decide Tilly's (TLYS) Fate in Q2 Earnings

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Tilly’s, Inc. (TLYS - Free Report) is scheduled to report second-quarter fiscal 2019 financial numbers on Aug 28, after the closing bell. We note that earnings of this Irvine, CA-based company surpassed estimates in the trailing four quarters, with average positive surprise of 31%.

Let’s see what is in store for Tilly’s this time around.

Where Are Estimates Heading?

The Zacks Consensus Estimate for second-quarter earnings is pegged at 20 cents, indicating a decline of about 31% from 29 cents reported in the year-ago quarter. We note that the consensus estimate was stable over the past 30 days. The consensus mark for revenues stands at $155.7 million, down 1.1% from the year-ago quarter’s reported figure.

Tilly's, Inc. Price and Consensus

Factors at Play

Tilly’s had earlier stated that it commenced the second quarter on a soft note. The company has already witnessed a drab performance in most of its spring-summer products across all regions in the to-be-reported quarter. Additionally, comparable store net sales (comps) declined 6.6% through the Memorial Day weekend due to adverse weather conditions. The company projects net sales to be roughly $154-$159 million for the second quarter, with comps decline of 1-4%.

However, Tilly’s is focused on enhancing customers’ in-store experience, increasing brand awareness and boosting store traffic. In this regard, the company’s loyalty program and improved mobile app will have a favorable impact on its second-quarter results. In fact, it anticipates adjusted earnings to be 17-23 cents in the fiscal second quarter, the midpoint (20 cents) of which is in line with the consensus mark.

What Does the Zacks Model Say?

Our proven model does not conclusively show that Tilly’s is likely to beat estimates in second-quarter fiscal 2019. A stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Tilly’s currently has a Zacks Rank #3 and an Earnings ESP of 0.00%, which makes surprise prediction difficult.

Stocks With Favorable Combination

Here are some companies 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) has an Earnings ESP of +8.43% and Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Burlington Stores (BURL - Free Report) has an Earnings ESP of +1.13% and a Zacks Rank #2.

Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +0.30% and a Zacks Rank #3.

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