Tilly’s Inc. surged 31% after reporting adjusted earnings per share of $0.27 for the second quarter, exceeding the $0.17 consensus estimate, while revenue reached $163.5 million, an 8.1% year-over-year increase.
Net income rose to $8.4 million, or $0.27 per diluted share, compared with $3.2 million, or $0.10 per share, in the same period last year. Comparable net sales climbed 12.1%, marking the retailer’s fourth consecutive quarter of year-over-year growth. Gross profit improved to $58.1 million, representing 35.5% of net sales, up from 32.5% a year earlier, while product margins expanded by 140 basis points for a seventh straight quarter of improvement.
The company operated 220 stores at quarter-end, down from 232 a year prior, and maintained total available liquidity of $125.5 million. President and CEO Nate Smith noted sustained operating momentum through the back-to-school season, citing 13 consecutive months of year-over-year comparable sales growth inclusive of August.
For the third quarter, Tilly’s guided for net sales between $150 million and $155 million, with comparable sales expected to rise 10% to 14%. Net income is projected at $2.2 million to $3.7 million, translating to diluted EPS of $0.07 to $0.12 per share, based on approximately 32.0 million diluted shares. The midpoint of $0.095 per share would represent the sixth straight quarter of year-over-year profit growth.
