Home / Knowledge / News / Apparel/Garments / Net income halves at apparel retailer Tilly's in Q2FY16
Net income halves at apparel retailer Tilly's in Q2FY16
Sep '15
Net income for the thirteen weeks to August 1, 2015 halved at Tilly's, Inc, specialty retailer of West Coast inspired apparel, footwear and accessories over the fiscal ago period.

Net income in the second quarter of fiscal 2016 was $0.6 million, or $0.02 per diluted share, compared to $1.3 million, or $0.05 per diluted share in the corresponding quarter of fiscal 2015.

This happened despite operating income doubling to $1.1 million in the reporting quarter as against $2.3 million in the prior fiscal second quarter.

The apparel retailer explained that the current fiscal's second quarter included an aggregate of $0.9 million in non-cash store asset impairment charges and an accrual for a potential legal settlement.

Total net sales for the reporting quarter totaled to $130 million vis-à-vis $123 million, an increase of $7 million or 6 per cent, while comparable store sales which includes e-commerce rose by just 0.5 per cent.

Gross profit too grew by $1.9 million or 6 per cent at $36.6 million versus $34.7 million and gross margin stood at 28.1 per cent compared to 28.2 per cent.

“This slight decrease was primarily due to a 40 basis point decline in product margins, partially offset by lower buying, distribution and occupancy costs as a percentage of net sales,” the retailer observed.

Its effective tax rate for the quarter under review was higher at 50 per cent as against 46 per cent and was higher primarily due to a tax settlement related to a prior tax year.

CEO Daniel Griesemer said, “Second quarter results were in line with our outlook, with sales growth driven by new store openings over the past twelve months and a strong e-commerce business.”

“We maintained our diligent inventory management, resulting in continued healthy product margins, and began the third quarter with inventory well positioned for the back-to-school season,” he added.

“Our merchandise offering is resonating well with our customers and we are encouraged by the solid start to the third quarter,” Griesemer noted.

As of August 1, 2015, the company had $77 million of cash and marketable securities and no debt outstanding under its revolving credit facility.

This compares to $57 million of cash and marketable securities and no debt as of August 2, 2014.

The company expects third quarter comparable store sales growth to be positive low single digits and net income per diluted share to be in the range of $0.12 to $0.16.

“This assumes an anticipated effective tax rate of approximately 40% and a weighted average diluted share count of 28.8 million shares,” it also added.

Tillys is headquartered in Southern California, USA and, as of August 26, 2015, operated 216 stores and an online website. (AR)

Fibre2Fashion News Desk – India

Must ReadView All

Pic: Shutterstock

Textiles | On 5th Mar 2021

US suspends tariffs on UK fashion-textile exports in trade dispute

The United States and the United Kingdom have released a joint...

Pic: Shutterstock

Retail | On 5th Mar 2021

German retail sales fall in Jan due to lockdown

Retail sales in Germany fell more than expected in January this year...

Pic: Target

Retail | On 5th Mar 2021

US retailer Target announces 2021 strategic investments

Target Corporation recently announced its plan to invest $4 billion...

Interviews View All

Textile industry, Head honchos

Textile industry
Head honchos

GenNext is slowly but surely adapting to global trends and practices

Textile Industry, Head honchos

Textile Industry
Head honchos

One thing is certain, online sales will go up

Karin Ekberg, Leadership & Sustainability

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Urmil Arya,

Urmil Arya

Sushila International, a well established textile organisation established ...

Emanuel Fertuzinhos,

Emanuel Fertuzinhos

Founded in 1981, Lisama, a Portuguese company, is a pioneer in the textile ...

Harmeet Singh,

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Ian Russell, Pireta

Ian Russell

UK-based Pireta has developed a unique free-form process to add durable,...

Megha Kumari & Jigar Mali, Label Megha & Jigar

Megha Kumari & Jigar Mali
Label Megha & Jigar

New Delhi based label Megha & Jigar blends India's unique handcrafts...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Sailesh Singhania, Sailesh Singhania Label

Sailesh Singhania
Sailesh Singhania Label

The Sailesh Singhania label was created to promote handwoven sarees and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

March 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search