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Tilly's (TLYS) Posts Stellar Holiday Sales, Comps Tick Up 14.1%

Zacks Equity Research
·4 min read

Tilly’s, Inc. TLYS reported stellar holiday sales numbers. Favorable market dynamics, a compelling merchandise assortment, and a shift in consumers’ preference for shopping at stores contributed to the results.

This Irvine, CA-based company highlighted that total net sales jumped 16.5% to $173.3 million during the holiday shopping period — the nine-week period ended Jan 1, 2022 — compared with $148.7 million for last year’s nine-week period ended Jan 2, 2021.

Impressively, total comparable net sales, including physical stores and e-commerce, rose 14.1% for the 2021 holiday period compared with an increase of 2.7% in the year-ago period.

Let’s Take a Closer Look

We note that comparable net sales in physical stores surged 23.2% for the 2021 holiday period against a decline of 12.4% during the 2020 holiday period. The metric increased by a double-digit percentage in all but one of 14 geographic markets. Net sales in physical stores represented 74.5% of total net sales for the 2021 holiday period compared with 68.4% of total net sales during the 2020 holiday period.

As customers preferred shopping at physical stores during the 2021 holiday season, e-commerce sales declined. We note that online sales saw a sharp rise in the 2020 holiday period, when government-mandated restrictions on customer traffic and lower store operating hours were in effect due to the pandemic. This resulted in higher online shopping.

E-commerce net sales fell 5.7% during the 2021 holiday period versus an increase of 65.2% in the 2020 holiday period. Markedly, e-commerce net sales represented 25.5% of total net sales for the 2021 holiday period. However, when compared with the 2019 holiday period, e-commerce net sales showcased an increase of 57.4%.

As of Jan 3, 2022, Tilly’s had $188.9 million of cash and marketable securities and no debt outstanding after paying an aggregate of $61.6 million in special cash dividends to shareholders in July and December 2021.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Outlook

Taking into account the robust performance in the holiday period as well as historical trends, Tilly’s anticipates posting the most profitable fourth quarter since becoming a public company. This specialty retailer of casual apparel, footwear and accessories expects to deliver the most profitable fiscal year on record.

Management envisions fourth-quarter fiscal 2021 net sales between $203 million and $205 million and earnings in the range of 39-42 cents a share. Tilly’s expects to conclude the current fiscal year with 241 total stores after shuttering two stores in late January 2022.

Shares of this Zacks Rank #1 (Strong Buy) company have risen 38.8% in the past year against the industry’s decline of 24.2%.

3 More Stocks Looking Red Hot

Here are three more favorably ranked stocks — Abercrombie & Fitch ANF, Citi Trends CTRN and Capri Holdings CPRI.

Abercrombie & Fitch, an omnichannel specialty retailer of apparel and accessories, flaunts a Zacks Rank #1. ANF has a trailing four-quarter earnings surprise of 112.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial year sales and EPS suggests growth of 21.2% and 758.9%, respectively, from the year-ago period.

Citi Trends, a specialty value retailer of apparel, accessories and home trends, sports a Zacks Rank #1. CTRN has a trailing four-quarter earnings surprise of 79.5%, on average.

The Zacks Consensus Estimate for Citi Trends’ current financial year sales and EPS suggests growth of 29.6% and 199.2%, respectively, from the year-ago period.

Capri Holdings, a global fashion luxury group, carries a Zacks Rank #2 (Buy). The company’s bottom line has outperformed the Zacks Consensus Estimate by a wide margin in the trailing four quarters.

The Zacks Consensus Estimate for Capri Holdings’ current financial year sales and EPS suggests growth of 33.2% and 181.1%, respectively, from the year-ago period. CPRI has an expected EPS growth rate of 32.2% for three-five years.


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Tilly's, Inc. (TLYS) : Free Stock Analysis Report

Capri Holdings Limited (CPRI) : Free Stock Analysis Report

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Zacks Investment Research