Tilly’s Inc, a leading specialty retailer of footwear, apparel and accessories, posted a net sales growth of 46.9 per cent to reach $206.1 million in the third quarter of fiscal 2021, over $140.3 million in the corresponding quarter of last year. The sales from physical stores were $165.3 million, while sales from e-commerce channel reached $40.8 million.

The quarterly sales from physical stores increased by $60.7 million to $165.3 from $104.6 million in the third quarter of last year. It was primarily due to a much more normalised back-to-school season this year that was free of pandemic-forced closures. Net sales from stores represented 80.2 per cent of the total net sales compared to 74.5 per cent of total net sales in same quarter of last year.

Net sales from e-commerce were $40.8 million, an increase of $5.1 million or 14.3 per cent, compared to $35.7 million last year. E-commerce net sales represented 19.8 per cent of total net sales compared to 25.5 per cent of total net sales last year.

"Fiscal 2021 continues to be a record-setting year for us so far, which we believe has been driven by our strong product assortment, an improved consumer spending environment, and the hard work and dedication of our entire team. Each of the first three quarters have produced record net sales and earnings per share," Ed Thomas, president and chief executive officer of the company, said in a press release.

Gross profit was $76.7 million, or 37.2 per cent of net sales, a record in the company's history as a public company, compared to $40.7 million, or 29 per cent of net sales, last year.

The operating income of the group also improved to $29 million or 14.1 per cent of net sales, compared to $3.5 million or 2.5 per cent of net sales, primarily due to the significant increase in net sales. Likewise, the net income improved to $20.8 million or $0.66 per diluted share, which are third quarter records for the company as a public company, compared to $2.1 million, or $0.07 per diluted share, last year. The weighted average shares were 31.4 million this year compared to 29.8 million last year.

The company had $155.6 million of cash and marketable securities with no debt outstanding, as of October 30, 2021.

Based on current and historical trends and assuming all of the company's stores and e-commerce will remain in operation throughout the fourth quarter and that global supply chain challenges will not have a material negative impact on the company's fiscal 2021 fourth quarter net sales results, the company would expect its fourth quarter net sales to be in the range of approximately $210 million to $215 million and earnings per diluted share to be in the range of $0.42 to $0.50.

This outlook is based on the company's expectations that its product margins will improve by 50 to 100 basis points relative to last year's fourth quarter based on an assumption of a less promotional environment (last year's fourth quarter product margins were up 210 basis points compared to fiscal 2019's fourth quarter), its SG&A expenses will be approximately 26 per cent of net sales, its estimated effective income tax rate will be 27 per cent, and its weighted average diluted shares will be approximately 31.6 million.

Fibre2Fashion News Desk (DD)

Disclaimer - All News/Articles items are subject to copyright and no article either in full or part may be reproduced in any form without permission from Fibre2Fashion Pvt. Ltd.