Tilly's Tops Q4 Views, Shares Rise

Shares of

gained more than 2 percent in after-hours trading after the company reported better-than-expected earnings for the fiscal fourth quarter. The Irvine, California-based company posted a quarterly profit of $7.1 million, or $0.25 per share, versus a year-ago profit of $5.4 million, or $0.19 per share. Its revenue climbed 9.2 percent to $152.8 million from $139.9 million. However, analysts were expecting earnings of $0.22 per share on revenue of $151.76 million. Comparable store sales rose 2.9 percent year-over-year in the quarter. Gross profit rose 13.2 percent to $49.0 million from $43.3 million, while gross margin widened to 32.1 percent in the fourth quarter from 30.9 percent in the year-ago quarter. As of January 31, 2015, Tilly's had $84.7 million of cash and marketable securities. "I am very pleased with the continued progress we have made on our initiatives to increase sales and profitability, which delivered positive comparable stores sales and fourth quarter earnings above our upwardly revised expectations and up 32% year-over-year. We achieved healthy product margins and exited this period with inventory well positioned for the Spring season," commented Daniel Griesemer, President and Chief Executive Officer. Tilly's named Jason Nazar to its board on March 12, 2015. For the first quarter, the company projects comparable store sales growth in the low single digits, and net income of $0.03 per share to $0.05 per share. Tilly's shares gained 2.46 percent to $13.75 in the after-hours trading session.