U.S. clothing retailer Tilly posts sales growth of 46.9% in third quarter of fiscal 21
Quarterly physical store sales increased $ 60.7 million to $ 165.3 million, from $ 104.6 million in the third quarter of last year. This was mainly due to a much more standardized back-to-school season this year, without forced closures in the event of a pandemic. Net store sales represented 80.2 percent of total net sales compared to 74.5 percent of total net sales in the same quarter last year.
Net e-commerce sales were $ 40.8 million, an increase of $ 5.1 million or 14.3 percent, from $ 35.7 million last year. E-commerce net sales accounted for 19.8% of total net sales, compared to 25.5% of total net sales last year.
Tilly’s Inc, a leading specialty footwear, apparel and accessories retailer, posted net sales growth of 46.9% to $ 206.1 million in the third quarter of fiscal 2021, from $ 140.3 million in the corresponding quarter of last year. Physical store sales were $ 165.3 million, while e-commerce channel sales reached $ 40.8 million.
“Fiscal 2021 continues to be a banner year for us so far, which we believe has been driven by our strong product mix, an improved consumer spending environment, as well as the hard work and dedication of our entire team. Each of the first three quarters produced record net sales and earnings per share“, Ed Thomas, President and CEO of the Company, said in a press release.
Gross profit was $ 76.7 million, or 37.2% of net sales, a record in the company’s history as a public company, from $ 40.7 million, or 29% in net sales last year.
Group operating profit also improved to $ 29 million or 14.1 percent of net sales, from $ 3.5 million or 2.5 percent of net sales, mainly due to the significant increase in net sales. Likewise, net income improved to $ 20.8 million or $ 0.66 per diluted share, setting a third quarter record for the company as a public company from $ 2.1 million. , or $ 0.07 per diluted share, last year. The weighted average of the shares was 31.4 million this year, up from 29.8 million last year.
The company had $ 155.6 million in cash and marketable securities with no outstanding debt 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 global supply chain challenges will not negatively impact Significant to the company’s net sales results for the fourth quarter of fiscal 2021, the company would expect its fourth quarter net sales to be between approximately $ 210 million and $ 215 million and that its diluted earnings per share are between $ 0.42 and $ 0.50.
This outlook is based on the company’s expectations that its product margins will improve by 50 to 100 basis points from the fourth quarter of last year based on an assumption of a less promotional environment. (last year’s fourth quarter product margins were up 210 basis points from fiscal fourth quarter 2019), its selling and administrative expenses will account for approximately 26% of net sales, its estimated effective tax rate will be 27% and its weighted average diluted shares will be approximately $ 31.6 million.
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