Tilly’s, Inc. (NYSE: TLYS, the “Company”) today announced financial results for the fourth quarter and full 2021 fiscal year ended January 29, 2022.
“Each quarter of fiscal 2021 set Company records for net sales and operating income. Our fourth quarter comparable net sales grew by 12.5% and our earnings per share of $0.38 represented our best fourth quarter earnings in our public company history. I am very proud of the dedication and hard work put in by our store, distribution and corporate office teams,” commented Ed Thomas, President and Chief Executive Officer. “Fiscal 2022 is off to a good start, but our comparisons to last year will get much tougher as we begin to anniversary last year’s pent-up demand and federal stimulus payments.”
Fiscal 2021 Fourth Quarter Results Overview
The following comparisons refer to operating results for the fourth quarter of fiscal 2021 versus the fourth quarter of fiscal 2020 ended January 30, 2021:
*Total net sales were $204.5 million, an increase of $26.6 million or 14.9%, compared to $177.9 million last year. Total comparable net sales, including both physical stores and e-commerce, increased by 12.5% compared to last year.
*Net sales from physical stores were $152.2 million, an increase of $29.6 million or 24.2%, compared to $122.5 million last year. Comparable net sales from physical stores increased by 20.7%. Net sales from stores represented 74.4% of total net sales compared to 68.9% of total net sales last year. The Company ended fiscal 2021 with 241 total stores compared to 238 total stores at the end of fiscal 2020.
*Net sales from e-commerce were $52.3 million, a decrease of $(3.1) million or (5.6)% compared to $55.4 million last year. E-commerce net sales represented 25.6% of total net sales compared to 31.1% of total net sales last year. Consumer behavior in 2021 favored stores over e-commerce relative to last year during which stores were more constricted in operating hours and customer occupancy limits than this year.
*Gross profit was $70.4 million, an increase of $12.1 million or 20.8%, compared to $58.3 million last year. Gross margin, or gross profit as a percentage of net sales, was 34.4%, an improvement of 170 basis points compared to 32.7% last year. Total buying, distribution and occupancy costs improved by 190 basis points collectively, despite increasing by $1.9 million in total, due to leveraging these costs against higher net sales. Product margins decreased by 20 basis points as a percentage of net sales primarily due to an increase in sales return reserves and less favorable inventory shrink results than last year, the combination of which more than offset a lower markdown rate compared to last year.
*Operating income was $17.3 million, or 8.5% of net sales, compared to $14.1 million, or 7.9% of net sales, last year. The $3.2 million increase in operating income was primarily due to the combined impact of the factors noted above.
*Income tax expense was $4.9 million, or 28.7% of pre-tax income, compared to $5.1 million, or 36.6% of pre-tax income, last year. The decrease in the effective income tax rate was primarily due to a normalization of the tax rate after last year’s effective tax rate was distorted by low pre-tax losses for the year.
*Net income was $12.1 million, or $0.38 per diluted share, compared to $8.9 million, or $0.29 per diluted share, last year. Weighted average shares were 31.4 million this year compared to 30.1 million last year.
details at: https://tillys.gcs-web.com/news-releases/news-release-details/tillys-inc-finishes-record-setting-fiscal-2021-strong-fourth