For the second quarter of fiscal 2019, total net sales at Tilly’s were 161.7 million dollars, an increase of 4.3 million dollars or 2.8 percent, while comparable store net sales, which includes e-commerce net sales, increased 0.6 percent and ecommerce net sales increased 15.7 percent. The company said in a statement that comparable store net sales in physical stores decreased 1.5 percent with comparable store net sales in physical stores decreasing by a high single-digit percentage in May, but increased by a low single-digit percentage in each of June and July.
“After a slow start to the second quarter during May, we posted positive comps both in stores and online during each of June and July to finish the quarter with better net sales, product margins, and earnings per share than expected,” commented Ed Thomas, the company’s President and Chief Executive Officer.
Review of Tilly’s second quarter and first half results Gross profit for the quarter was 51.7 million dollars, an increase of 1.6 million dollars or 3.2 percent compared to 50.1 million dollars last year, and gross margin as a percentage of net sales, increased to 32 percent from 31.8 percent last year. Net income was 9.3 million dollars or 31 cents per diluted share compared to 9.7 million dollars or 33 cents per diluted share, last year.
Total net sales for the first half were 292 million dollars, an increase of 11 million dollars or 3.9 percent, while comparable store net sales, which include ecommerce net sales, increased 1.4 percent. Ecommerce net sales increased 21.7 percent and represented approximately 14.5 percent. Comparable store net sales in physical stores decreased 1.5 percent.
Gross profit for the first half was 87.4 million dollars, an increase of 2.3 million dollars or 2.7 percent, while gross margin was 29.9 percent compared to 30.3 percent last year. Net income was 10 million dollars or 33 cents per diluted share compared to 10.9 million dollars or 37 cents per share, last year.
The company added that total comparable store net sales have increased 4.2 percent through August 26, 2019. Based on current and historical trends, the company expects its third quarter total net sales to range from approximately 151 million dollars to approximately 156 million dollars based on a comparable store net sales increase of 1 percent to 4 percent for the quarter as a whole, while earnings per diluted share are expected to range from 18 cents to 22 cents.