Teen apparel retailer narrows loss amid sales gains

A tough February couldn't keep Tilly's down, which reported better-than-expected results for its first quarter.



The teen apparel and footwear retailer narrowed its loss in the first quarter to $161,000, or 1 cent a share, compared with a net loss of $2.7 million, or 10 cents a share, in the year-ago period. Its results were better than expected.



Net sales inched up 0.6% to $120.9 million, better easily beating the Street. Same-store sales rose 0.6%.



Tilly's gross margin increased to 27.2% from 27.1% last year. The 10 basis point increase in gross margin was attributable to a 80 basis point reduction in buying, distribution and occupancy costs, offset by a 70 basis point decline in product margins from increased markdowns.



"We believe our initiatives are gaining traction," said Ed Thomas, president and CEO. "After a tough February, our combined March/April comparable store sales were up 5.3%, resulting in a positive comparable store sales result for the first quarter as a whole and our fourth consecutive quarter of year-over-year operating income improvement."



Tilly’s is headquartered in Irvine, California, and currently operates 222 total stores across 31 states.