Tilly's Q4'FY14 net sales drop marginally

20 Mar '14

4 min read

For the 52-weeks ended February 1, 2014 (2012 reflects a 53-week period):

Total net sales were $495.8 million, an increase of 6.1% compared to the prior year.

Comparable store sales, which include e-commerce sales, decreased 1.9% compared to the same 52-week period in 2012. E-commerce sales were $57.8 million, an increase of approximately 11% compared to the same 52-week period in 2012.

Gross profit increased 1.4% to $152.3 million. Gross margin was 30.7% compared to 32.1% in the prior year period. Product margins increased 30 basis points, offset primarily by deleverage in buying, distribution and occupancy costs as a result of the negative comparable store sales.

Operating income was $29.7 million, and included $1.8 million in store asset impairment charges recorded in the fourth quarter. This compares to operating income of $31.4 million in the prior year, during which the Company recognized a one-time non-cash SG&A charge of $7.6 million, before tax, related to stock-based compensation expense triggered by the company’s initial public offering.

Net income was $18.1 million, or $0.65 per diluted share, based on a weighted average diluted share count of 28.1 million shares and an effective tax rate of approximately 39% due to a one-time tax benefit related to return to provision adjustments. This compares to net income in the prior year of $23.9 million, or $0.92 per diluted share, based on a weighted average diluted share count of 26.1 million shares. Adjusting for non-cash stock-based compensation charges and applying an expected long-term effective tax rate of 40%, adjusted net income was $22.9 million, or $0.88 per diluted share, in the prior year.

Tilly's

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