The U.S. Postal Service on November 16th filed for Postal Regulatory Commission (PRC) approval of five mailing promotional discounts to be offered in 2016, the first of which to begin on March 1, 2016. With only slight changes, the proposed promotions are largely the same as those offered for 2015. The USPS says the promotions are designed to encourage mailers and their printers to use new technology and tools "to leverage and build upon the implicit value of a physical mailpiece [to] drive response rates and the overall return on the mailer’s investment in mail."
Tilly’s, Inc. (NYSE: TLYS, the “Company”) today announced comparable store net sales results for the nine-week period ended January 4, 2020 (the “holiday period”), and provided updates on its fiscal 2019 fourth quarter earnings outlook in advance of its attendance at the annual ICR Conference in Orlando, Florida on January 13-14, 2020.
“Following a strong Black Friday weekend and Cyber Monday, our business experienced an unexpected deceleration in net sales and store traffic during the second and third weeks of December, resulting in a disappointing 2019 holiday season overall,” commented Ed Thomas, President and Chief Executive Officer.
• Total net sales of $143.9 million increased by 1.1% for the holiday period compared to $142.4 million for last year’s comparable nine-week holiday period ended January 5, 2019.
• Comparable store net sales, including e-commerce, decreased by 2.0% for the holiday period compared to an increase of 5.8% for last year’s holiday period. ◦ Comparable store net sales in physical stores decreased by 2.7% for the holiday period compared to a decrease of 0.7% during last year’s holiday period. Net sales in physical stores represented approximately 80.5% of total net sales for the holiday period, consistent with last year’s holiday period.
◦ E-commerce net sales increased by 1.0% for the holiday period compared to an increase of 42.8% during last year’s holiday period. E-commerce net sales represented approximately 19.5% of total net sales for the holiday period, consistent with last year’s holiday period.
• The Company’s comparable store net sales results for the 2019 holiday period decreased in most of the Company’s major geographic markets, with the exception of New England, the Upper Midwest, and Arizona. Comparable store net sales were weakest in the Southeast, Florida and Nevada. In terms of merchandising, comparable store net sales of Girls and Womens were positive but this was more than offset by declines in all other merchandising departments, particularly Footwear and Accessories.
• Based on its operating results during the holiday period and historical trends, the Company now expects its fiscal 2019 fourth quarter comparable store net sales to decrease by 2% to 3% and earnings per diluted share to be approximately $0.18 to $0.20. This outlook assumes an effective tax rate of approximately 31%, including certain discrete items relating to stock option expirations, and weighted average diluted shares of approximately 29.9 million based on the latest available information.