What To Look For From TLYS

Young adult apparel retailer Tilly’s (NYSE:TLYS) will be reporting results this Wednesday afternoon. Here’s what to look for.

Tilly’s missed analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $151.3 million, down 7.1% year on year. It was a very strong 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, analysts are expecting Tilly’s revenue to decline 4.6% year on year to $136.9 million, improving from the 13.8% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.30 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tilly’s has missed Wall Street’s revenue estimates twice since going public.

Looking at Tilly’s peers in the apparel retailer segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Urban Outfitters delivered year-on-year revenue growth of 12.3%, beating analysts’ expectations by 2.6%, and Gap reported revenues up 3%, topping estimates by 0.8%. Urban Outfitters traded up 13.5% following the results while Gap was also up 8.4%.

Read our full analysis of Urban Outfitters’s results here and Gap’s results here.

There has been positive sentiment among investors in the apparel retailer segment, with share prices up 5.2% on average over the last month. Tilly’s is down 1.3% during the same time and is heading into earnings with an average analyst price target of $2.25 (compared to the current share price of $1.48).

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