Tilly’s, Inc. (NYSE: TLYS) today announced financial results for the third quarter of fiscal 2012 ended October 27, 2012.
For the thirteen weeks ended October 27, 2012:
- Total net sales for the third quarter were $124.9 million, an increase of 16.4% compared to the third quarter in the prior year. Comparable store sales, which include e-commerce sales, increased 1.9%. E-commerce sales were $12.9 million, an increase of 17% compared to the third quarter in the prior year.
- Gross profit increased 16.6% to $41.8 million. Gross margin was 33.5%, which was slightly higher than the third quarter of 2011.
- Operating income on a GAAP basis was $13.9 million compared to $12.3 million in the third quarter of 2011. Operating margin for the quarter was 11.1% as compared to 11.5% in the third quarter of 2011.
- On a GAAP basis, net income was $9.3 million, or $0.33 per diluted share, based on a weighted average diluted share count of 28.1 million shares. This compares to net income of $12.2 million, or $0.59 per weighted average diluted share, based on 20.5 million weighted average diluted shares in the third quarter of 2011.
- Adjusted net income for the quarter increased 19.0% to $8.3 million, or $0.30 per weighted average diluted share, compared to adjusted net income of $7.0 million, or $0.34 per weighted average diluted share, in the third quarter of 2011. These results assume an expected long-term effective tax rate of 40% for both this year and last year periods, and add back a charge for on-going non-cash compensation expense for stock options of $0.7 million, before tax, to the third quarter of 2011, which equals the charge for on-going non-cash compensation expense in the third quarter of 2012.
- At the conclusion of this press release is a reconciliation of GAAP to non-GAAP results.
Daniel Griesemer, President and Chief Executive Officer, commented, “Our results for the third quarter exemplify the strength and uniqueness of our business model that has guided Tilly’s success over the past 30 years. Strong execution on the controllable elements of our business resulted in quality earnings that were at the high end of our outlook range and inventory appropriately positioned for the holiday season. We opened seven new stores and expanded into three new states including Ohio, Michigan and North Carolina, and these stores are off to a good start. While we are cautious in our outlook for the fourth quarter, I am confident that the fundamentals of our business, the strength of our business model and the disciplined execution of our management team will enable us to make steady progress on our long-term growth initiatives.”