Young adult apparel retailer Tilly’s (NYSE: TLYS) will be announcing earnings results this Wednesday afternoon. Here’s what to look for.
Tilly's beat analysts’ revenue expectations last quarter, reporting revenues of $155.1 million, up 5.3% year on year. It was an incredible quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Tilly's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Tilly’s revenue to grow 12.7% year on year, a reversal from the 7.1% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Tilly's has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Tilly’s peers in the apparel retailer segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Urban Outfitters delivered year-on-year revenue growth of 11.4%, beating analysts’ expectations by 1.4%, and American Eagle reported revenues up 9.7%, topping estimates by 0.9%. Urban Outfitters traded up 2.9% following the results while American Eagle was down 12%.
Read our full analysis of Urban Outfitters’s results here and American Eagle’s results here.
There has been positive sentiment among investors in the apparel retailer segment, with share prices up 2.6% on average over the last month. Tilly's is down 5.3% during the same time and is heading into earnings with an average analyst price target of $3 (compared to the current share price of $4.30).
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