Why Tilly's Shares Tanked

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of teen-oriented apparel retailer Tilly's (NYSE: TLYS  ) plummeted 19% today after its quarterly results and guidance missed Wall Street expectations.

So what: Tilly's third-quarter profit managed to meet estimates, but a miss on the top line -- revenue of $124.9 million versus the consensus of $128.7 million -- coupled with downbeat guidance for the fourth quarter reinforces concerns over slowing demand. In fact, same-store sales increased just 1.9% during the quarter, suggesting that the brand doesn't quite have the growth potential that analysts once thought.

Now what: Management now sees full-year 2012 adjusted EPS of $0.88-$0.91, down from its prior view of $0.88-$0.94 and below Wall Street's estimate of $0.92. "While we are cautious in our outlook for the fourth quarter," CEO Daniel Griesemer said, "I am confident that the fundamentals of our business ... and the disciplined execution of our management team will enable us to make steady progress on our long-term growth initiatives." With the stock hitting a new 52-week low today and trading at a forward P/E of 12, now might even be an opportune time to buy into that bullishness.

Interested in more info on Tilly's? Add it to your watchlist.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2123695, ~/Articles/ArticleHandler.aspx, 10/23/2014 1:19:03 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement