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TILLY'S Tilly's , Inc. Announces Record Quarterly Net Sales and Earnings September 2 , 2021 Introduces Fiscal 2021 Third Quarter Outlook IRVINE , Calif .-- ( BUSINESS WIRE ) -- Sep . 2 , 2021-- Tilly's , Inc. ( NYSE : TLYS , the " Company " ) today announced record - setting financial results for the second quarter and first half of fiscal 2021 ended July 31 , 2021 . " Fiscal 2021 has been a record - setting year for us so far . Our second quarter results included a record level of net sales and earnings per share for any quarter , and our first half earnings per share exceeded the results of any full fiscal year , since we became a public company in 2012 , " commented Ed Thomas , President and Chief Executive Officer . " The back - to - school season is off to a strong start with double - digit percentage increases in comparable net sales in both physical stores and e - commerce compared to both last year and 2019. Despite ongoing concerns about the current resurgence of COVID - 19 cases across the country , supply chain disruptions , labor challenges , and increasing costs generally , we remain cautiously optimistic about our business prospects for the second half of fiscal 2021. " Fiscal 2021 Second Quarter Operating Results Overview The following comparisons refer to the Company's operating results for the second quarter of fiscal 2021 versus the second quarter of fiscal 2020 ended August 1 , 2020 : • Total net sales were $ 202.0 million , a record for any quarter in the Company's history , and an increase of $ 66.1 million or 48.7 % , compared to $ 135.8 million last year . o Net sales from physical stores were $ 164.6 million , an increase of $ 80.8 million or 96.3 % , compared to $ 83.9 million last year , primarily due to a strong product offering and the impact of the various periods of government mandated store closures during last year's second quarter which resulted in only 65 % of total store operating days being available during that period last year . Net sales from stores represented 81.5 % of total net sales compared to 61.7 % of total net sales last year . The Company ended the second quarter with 244 total stores compared to 238 total stores at the end of the second quarter last year ( 33 of which were closed to the public at that time ) . During the second quarter of fiscal 2021 , the Company opened six new stores . o Net sales from e - commerce were $ 37.3 million , a decrease of $ ( 14.7 ) million or ( 28.2 ) % , compared to $ 52.0 million last year , primarily due to the anniversary of last year's triple - digit e - commerce net sales growth during May and June during the period of significant government - mandated store closures . E - commerce net sales represented 18.5 % of total net sales compared to 38.3 % of total net sales last year . o Total comparable net sales for the second quarter of fiscal 2021 compared to the second quarter of fiscal 2019 increased by 18.3 % . Comparable net sales from physical stores increased by 11.0 % , with increases across all geographic markets , and e - commerce net sales increased by 63.4 % . In the second quarter of fiscal 2019 , total net sales from physical stores represented 85.9 % of total net sales while net sales from e - commerce represented 14.1 % of total net sales . • Gross profit was $ 74.7 million , or 37.0 % of net sales , compared to $ 41.7 million , or 30.7 % of net sales , last year . Buying , distribution and occupancy costs improved by 800 basis points collectively , despite increasing by $ 1.7 million in total , due to leveraging these costs against higher net sales . Product margins decreased 170 basis points as a percentage of net sales due to the anniversary of last year's strong full - price selling upon the initial reopening of stores relative to certain inventory valuation reserves taken on idle store inventory at the end of the first quarter last year when all stores were closed . Compared to fiscal 2019's second quarter , product margins improved by 190 basis points primarily due to reduced markdowns . • Selling , general and administrative expenses ( " SG & A " ) were $ 48.3 million , or 23.9 % of net sales , compared to $ 34.0 million , or 25.0 % of net sales , last year . SG & A improved by 110 basis points as a percentage of net sales , despite increasing by $ 14.3 million , due to leveraging these costs over higher net sales compared to last year . Primary causes of the SG & A dollar increase included store payroll and related benefits of $ 10.2 million , primarily due to operating all stores for the entirety of the quarter and serving significantly higher net sales , and corporate bonus accruals of $ 2.7 million associated with strong operating performance thus far in fiscal 2021 . Operating income increased to $ 26.4 million , or 13.1 % of net sales , compared to $ 7.7 million , or 5.7 % of net sales , primarily due to the significant increase in net sales . • Income tax expense was $ 5.9 million , or 22.5 % of pre - tax income , compared to $ 2.8 million , or 34.3 % of pre - tax income , last year . The decrease in the effective income tax rate was primarily due to deferred income tax benefits of $ 0.9 million derived from employee stock option exercise activity this year and the prior year impact of the Coronavirus Aid , Relief , and Economic Security Act ( the " CARES Act " ) , which provided for net operating losses in fiscal 2020 to be carried back to earlier tax years with higher tax rates .