Tilly's, Inc. (NYSE: TLYS) reported Q1 EPS of $0.02, in-line with the analyst estimate of $0.02. Revenue for the quarter came in at $130.3 million versus the consensus estimate of $128.73 million.

• Comp Store Net Sales Increase 2.4%

GUIDANCE:

Tilly's, Inc. sees Q2 2019 EPS of $0.17-$0.23 vs $0.28 consensus.

• The Company's quarter-to-date comparable store net sales have decreased 6.6% through Memorial Day weekend. The Company believes this slow start is largely attributable to unseasonable weather across much of the country, particularly in California where 95 of the Company's 228 total stores reside, resulting in weak sales results across almost all spring/summer product categories. The Company believes these results will improve over the remainder of the second quarter, assuming more normal weather patterns occur. Based on current and historical trends, the Company expects its second quarter total net sales to range from approximately $154 million to approximately $159 million based on a comparable store net sales decrease of 1% to 4% for the quarter as a whole. The Company expects second quarter operating income to range from approximately $6.5 million to approximately $8.5 million, and earnings per diluted share to range from $0.17 to $0.23. This outlook assumes no non-cash store asset impairment charges, an anticipated effective tax rate of approximately 27%, and weighted average shares of approximately 30 million.
• Regarding the legal settlement coupons the Company issued last September, less than 2% have been redeemed to date, resulting in no material impact on its business. All such coupons will expire on September 4, 2019. While there can be no guarantee that redemptions will remain immaterial during the upcoming back-to-school season, the Company is not expecting any meaningful impacts on its business during the final three months of the redemption period based on the redemption results thus far.

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