Shares of clothing retailer, Tilly’s (NYSE: TLYS) were on a downslide in morning trading on Friday after a bleak second-quarter outlook. The company has forecasted a wider second-quarter loss of $0.13 to a loss of $0.27 per share. Tilly’s has projected Q2 net sales in the range of around $148 million to $158 million while comparable sales are expected to decline between 10% to 15% year-over-year.
Ed Thomas, Tilly’s President and CEO commented, “We believe the highly uncertain and inflationary economic environment continues to have a detrimental impact on our pre-teen, teen, and young adult customer demographic. While we believe our product assortments are trend right, the impact of inflation and potential recessionary concerns remain a risk to our business over the near term.”
In Q1, the retailer’s net sales fell by 15.2% year-over-year to $123.6 million and fell short of consensus estimates of $124.98 million. Total comparable sales, including both physical stores and e-commerce declined by 17.5% in Q1.
The company swung to a loss in Q1 of $0.40 per share versus earnings of $0.03 per share in the same period last year while analysts were expecting a loss of $0.34 per share.
In the past year, TLYS stock has tanked by more than 12%.
