Tilly's Shares Dip On Weak Outlook

Shares of

tumbled more than 8 percent in after-hours trading after the company issued a weak forecast for the second quarter. However, the company's quarterly earnings exceeded analysts' estimates. For the current quarter, Tilly's expects earnings of $0.01 to $0.05 per share, versus analysts' estimates of $0.08 per share. The company projects comparable-store sales in the range of a 2 percent drop to a 2 percent gain. The Irvine, California-based company posted quarterly earnings of $1.3 million, or $0.05 per share, versus $591,000, or $0.02 per share, in the year-ago period. Its net sales gained 8.1 percent year-over-year to $120.2 million from $111.1 million. However, analysts were expecting a profit of $0.04 per share on revenue of $121.01 million. Its comparable-store sales increased 2 percent during the quarter. Gross profit climbed 15.3 percent to $36.1 million from $31.3 million, while gross margin widened to 30.0 percent from 28.2 percent in the year-ago quarter. Operating income surged to $2.1 million, from $1.1 million. As of May 2, 2015, Tilly's had $79.2 million of cash and marketable securities. "Our first quarter results illustrate continued progress on our initiatives to increase sales and profitability, as we delivered positive comparable store sales and solid earnings growth over the prior year period. We expanded our gross profit and ended the quarter with inventory well positioned for the summer and back-to-school seasons," said Daniel Griesemer, President and Chief Executive Officer. Tilly's shares fell 8.46 percent to $11.90 in the after-hours trading session.