Tilly's: Everything That Is Wrong With Mall Retail
Tilly's: What Stems The Decline?
Tue, Sep. 20, 12:43 PM
Tue, Sep. 20, 11:35 AM
- Apparel store stocks are trading soft after a brutal cut in guidance from Ascena Retail Group (ASNA -26%) cast a shadow over the group.
- During Ascena's earnings call, CEO David Jaffe said a "highly competitive selling environment" and "significant store traffic headwinds" were tough to overcome.
- Former bulls FBR, Oppenheimer, and RBC Capital Market all abandoned their positive ratings on Ascena. While no Wall Street firms were out with a Sell rating on Ascena this summer in front of the earnings dud, SA contributor Terrier Investing issued a warning in June.
- Decliners today include Tilly's (TLYS -8%), Bebe Stores (BEBE -3.5%), Stage Stores (SSI -2%), Express (EXPR -2.1%), Chico's FAS (CHS -1.5%), and Destination XL Group (DXLG -1.7%).
Fri, Sep. 9, 9:27 AM
- A survey from William Blair indicates that teenagers and young adults have increased their visits to malls this year to reverse a multi-year trend.
- In what may come as a surprise, teens ranked malls above movie theaters, restaurants, and sports clubs/extracurriculars as their most popular place to meet.
- Despite the depressed levels of overall sales this year for mall retailers, the read on teens could be a possible indicator that the mall model will evolve and survive, instead of disappear.
- "While overall mall traffic remains challenging, our survey this year noted a material increase in the number of respondents who indicated they are visiting malls more often than last year, perhaps suggesting that malls’ efforts to increase relevancy (through more experiential brands and the addition of attractive entertainment and dining options) are beginning to bear fruit," says Bernstein analyst Sharon Zackfia.
- Mall retailers: AEO, ANF, ASNA, BKE, BOOT, CATO, CBK, CHS, CTRN, DSW, EXPR, FRAN, GCO, GES, GPS, LB, NWY, PLCE, SCVL, SMRT, SSI, TLYS, URBN, LULU.
Tue, Sep. 6, 11:35 AM| Tue, Sep. 6, 11:35 AM | 1 Comment
Thu, Aug. 25, 11:10 AM
- Tilly's (TLYS +7.5%) rallies after surprising on the upside with Q2 results.
- "Our second quarter comp sales and operating income exceeded our outlook ranges and we ended the quarter with inventory down 7% on a per square foot basis," summed up CEO Ed Thomas.
- Tilly's expanded its margin rates during the quarter, despite only a 0.9% in gain comparable sales.
- Shares of tilly's are at their highest level since mid-March.
- Previously: Tilly's beats by $0.08, beats on revenue (Aug. 24)
Wed, Aug. 24, 5:38 PM
Wed, Aug. 24, 4:07 PM
Tue, Aug. 23, 5:35 PM
Wed, Aug. 17, 11:16 AM
- Soft earnings reports from Target, Lowe's, and Staples are tainting the retail sector today.
- A loose theme among the trio is that they are feeling the impact of general store traffic pressure on one front and under-performing Amazon on the e-commerce side (or Home Depot in the case of Lowe's).
- Notable movers include Office Depot (ODP -7%), Pier 1 Imports (PIR -2.7%), Haverty Furniture (HVT -1.1%), Sears Holdings (SHLD -6.5%), Stage Stores (SSI -3%), Nordstrom (JWN -2.4%), Tilly's (TLYS -0.8%), Zagg (ZAGG -2.7%), Party City (PRTY -1.3%), J.C. Penney (JCP -4.4%), Restoration Hardware (RH -4.1%) Bed Bath & Beyond (BBBY -1.9%), Williams-Sonoma (WSM -2.8%), and Kohl's (KSS -2.3%),
- Looking ahead, Wal-Mart (WMT -0.3%) reports earnings tomorrow before the bell. The same-store sales bar is relatively low after the company guided for a 1% gain for U.S. SSS and with the consensus estimate of analysts even lower at +0.9%. Perhaps more important than Q2 numbers will be the comments from Wal-Mart management on the Jet.com integration and the impact of higher base wages.
Wed, May 25, 4:07 PM
Tue, May 24, 5:35 PM
Sat, May 14, 11:01 AM
- The retail sector stays in focus next week with Target (NYSE:TGT), Wal-Mart (NYSE:WMT), TJX Companies (NYSE:TJX), and Ross Stores (NASDAQ:ROST) all due to report on Q1 earnings to follow on a week of dismal reports and guidance from the department store sector (Nordstrom, L Brands, Macy's, Kohl's). Home improvement chains Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) are also due to spill numbers.
- The story from the Commerce Department's April read of retail sales (+3.0% Y/Y, +1.3% M/M) is one of a consumer spending on housing, entertainment, and personal care/fitness over apparel and general merchandise. The 10% Y/Y gain in the nonstore retailer category also tipped that the Amazon (NASDAQ:AMZN) Effect is magnifying.
- Amplify ETFs CEO Christian Magoon tells Seeking Alpha that the traditional retail model appears to be broken. Amplify's Online Retail ETF (NASDAQ:IBUY) is a bet on companies such as Netflix (NASDAQ:NFLX), GrubHub (NYSE:GRUB), Blue Nile (NASDAQ:NILE), and Shopify (NYSE:SHOP) that are reeling in millennial dollars.
- Magoon on retail: "Traditional retailers face the headwinds of higher cost structures including the very real threat of increasing wages in the form of the $15 minimum wage campaign. Less flexible with inventory management, they also are more vulnerable to issues like weather and changing consumer preferences."
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE.
- Apparel stocks: KATE, ANN, LULU, PVH, VNCE, CRI, UA, HBI, VFC, COLM, GIL, SQBG, JCP, KSS, DDS, M, JWN, ARO, AEO, ANF, WTSL, TLYS, CACH, ZUMZ, PSUN, EXPR, BKE, GIII, SQBG, HBI, VRA, ICON, SHOO, PERY, DXLG, BONT, GES, URBN, RL,GIL, NKE, OXM, HBI, VNCE, PERY, ICON, FL.
Thu, Apr. 21, 2:17 PM
- Aeropostale (NYSE:ARO) dives 27.7% to $0.151 with Bloomberg reporting that a bankruptcy could be filed by the company as soon as this month.
- Sources say Aeropostale wants to reorganize with a Chapter 11 filing.
- Mall retailer peers Abercrombie & Fitch (ANF -2.2%), Express (EXPR -2.9%), Tilly's (TLYS -2%), and American Eagle Outfitters (AEO -1.6%) are also notably lower on the day.
- Now read A Few Thoughts Inspired By Saturday Shopping
Fri, Apr. 15, 9:16 AM
- American Eagle Outfitters (NYSE:AEO) announces that it ended the practice of "on-call" shifts.
- The company says the new policy is being reinforced across the American Eagle store fleet.
- The use of on-call shifts in the retail sector continues to generate significant negative publicity for many chains, and has the Illinois Attorney General along with counterparts in other states asking questions.
- Other companies which are under on-call scrutiny include Carter's (NYSE:CRI), Aeropostale (NYSE:ARO), Coach (NYSE:COH), David's Tea (NASDAQ:DTEA), Justice (NASDAQ:ASNA), Tilly's (NYSE:TLYS), and Uniqlo (OTCPK:FRCOY).
- Now read Should You Buy Retail ETFs Despite Soft Sales?
Tue, Mar. 22, 11:03 AM
- B. Riley sticks with a Neutral stance on Tilly's (TLYS -1.9%), although the investment firm's price target of $9 implies upside for the sub-$7 stock.
- SA contributor Vince Martin broke down Tilly's last week after factoring in Q1 results.
- An important point from Martin is his assertion that Tilly's needs ~3% comps or better to drive any SG&A leverage. That's a tall order in the mall retailer sector.
- Previously: Tilly's misses by $0.01, beats on revenue (March 16)
- Previously: Markdowns take at a toll at Tilly's (March 16)
Thu, Mar. 17, 12:49 PM