Tilly’s Earnings: Here’s Why the Stock is Falling Now

Tilly’s, Inc. (NYSE:TLYS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 10.25%.

Tilly’s, Inc. Earnings Cheat Sheet

Revenue: Rose 14.54% to $140.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tilly’s, Inc. reported adjusted EPS income of $0.32 per share. By that measure, the company beat the mean analyst estimate of $0.30. It missed the average revenue estimate of $141.1 million.

Quoting Management: “I am proud of what we accomplished in fiscal 2012. In line with our long-term goals we achieved double-digit growth in net sales and, on an adjusted basis, leveraged our SG&A expenses, increased our operating margin and grew net income by 19% during the year. Despite the variability in sales trends we experienced in the second half of 2012, we maintained our strong pricing discipline and exited the year with inventory that was clean, current and well positioned for the spring season. Our business continued to generate significant cash flow and we capitalized on a strong pipeline of real estate opportunities to open a net 28 new stores during the year, further expanding the Tilly’s concept into 20 new markets and augmenting a key driver of future growth,” commented Daniel Griesemer, President and Chief Executive Officer. “As we begin fiscal 2013, we are confident in the fundamentals of our business and in our ability to deliver on the opportunities we see to expand the Tilly’s brand for sustainable, long-term, quality growth.”

Key Stats (on next page)…