Earnings To Watch: Tilly's (TLYS) Reports Q1 Results Tomorrow

Young adult apparel retailer Tilly’s (NYSE:TLYS) will be reporting results tomorrow afternoon. Here's what investors should know.

Tilly's met analysts' revenue expectations last quarter, reporting revenues of $173 million, down 4.1% year on year. It was a mixed quarter for the company. Tilly's exceeded analysts' gross margin expectations. In addition, its revenue narrowly outperformed Wall Street's estimates. On the other hand, its EPS fell significantly short, and its revenue and EPS guidance for next quarter missed analysts' expectations.

Is Tilly's a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Tilly's revenue to decline 6.5% year on year to $115.6 million, improving from the 15.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.46 per share.

The majority of analysts covering the company have 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 three times over the last two years.

Looking at Tilly's peers in the apparel retailer segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Gap delivered year-on-year revenue growth of 3.4%, beating analysts' expectations by 3.1%, and Abercrombie and Fitch reported revenues up 22.1%, topping estimates by 5.8%. Gap traded up 29.3% following the results while Abercrombie and Fitch was also up 17.1%.

Read our full analysis of Gap's results here and Abercrombie and Fitch's results here.

There has been positive sentiment among investors in the apparel retailer segment, with share prices up 8.3% on average over the last month. Tilly's is down 4.8% during the same time and is heading into earnings with an average analyst price target of $7.9 (compared to the current share price of $5.6).

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