Tilly's, Inc. (NYSE: TLYS) reported Q1 EPS of $0.04, $0.03 better than the analyst estimate of $0.01. Revenue for the quarter came in at $123.6 million versus the consensus estimate of $121.86 million.

First Quarter Results Overview

The following comparisons refer to operating results for the first quarter of fiscal 2018 versus the first quarter of fiscal 2017 ended April 29, 2017:

• Total net sales were $123.6 million, an increase of 2.2%, from $120.9 million last year, primarily due to the calendar shift impact of last year\'s 53rd week in the retail calendar.
• Comparable store sales, which includes e-commerce sales, increased 0.1% in total. Comparable store sales in physical stores were up 1.2%. E-commerce sales were down 7.2% for the quarter, yet improved incrementally in each month of the quarter. Comparable store sales increased 0.6% in the first quarter last year.
• Gross profit was $35.0 million, an increase of 6.3% from $32.9 million last year. Gross margin, or gross profit as a percentage of net sales, increased to 28.3% from 27.2% last year. This 110 basis point increase in gross margin was attributable to a 120 basis point reduction in buying, distribution and occupancy costs as a result of distribution savings and occupancy reductions. Product margins declined 10 basis points as a result of lower initial markups.
• Selling, general and administrative expenses (\"SG&A\") were $33.6 million, or 27.2% of net sales, compared to $33.2 million, or 27.5% of net sales, last year. This 30 basis point decrease in SG&A was primarily driven by corporate payroll savings and disciplined store payroll management, despite minimum wage increases in certain markets. The $0.4 million increase in SG&A was primarily due to costs associated with new order management, website and point-of-sale systems.
• Operating income was $1.3 million, or 1.1% of net sales, compared to an operating loss of $(0.3) million, or (0.3)% of net sales, last year. This 140 basis point increase in our operating margin was primarily attributable to reduced distribution and occupancy costs, and improved leverage of SG&A on higher total sales, as explained above.
• Income tax expense was $0.5 million, or 28.6% of pre-tax income, compared to $0.1 million last year. Income tax expense includes certain discrete items associated with employee stock-based award activity in both periods.
• Net income was $1.2 million, or $0.04 per diluted share, compared to a net loss of $(0.2) million, or $(0.01) per share, last year.

For earnings history and earnings-related data on Tilly's, Inc. (TLYS) click here.