UPDATE: Goldman Sachs Downgrades Tilly's Following Disappointing 3Q13 Results

In a report published Wednesday, Goldman Sachs analyst Lindsay Drucker Mann downgraded Tilly's Inc

from a Buy rating to a Neutral rating and lowered the price target from $17.00 to $12.00. In the report, Goldman Sachs says "We downgrade TLYS to Neutral from Buy after a disappointing 3Q13 result. Our bullish view had been based on our belief that TLYS' rapid sourcing supply chain gave stores an advantage in driving comp sales and gross margins relative to peers. Following another quarter of weak comps, we no longer have confidence in this view. We reduce our 2013-15E EPS to $0.64/$0.69/$0.76 from $0.79/$0.92/$1.06, reflecting both a disappointing 4Q13 outlook and our weaker out-year comp and gross margin assumptions. Since adding TLYS to the Buy List on December 11, 2012, the shares are +17% vs. the S&P 500 +26%." Tilly's closed on Tuesday at $15.88.