TLYS is another retailed (mall-based) which has been consistently outperforming the expectations put on it. The company had been reporting its third-quarter earnings the current week and broke through the consensus. They ended up producing not just sequential growth despite a second-quarter shut-down. Interestingly, with the company already doing away with the consensus target set for the full year, one would expect it to go higher. But, surprisingly, it is not. According to news, the shares have been going down by 15%- which should beget the question- should one get in?
The stocks of TLYS have been considered to be interesting, simply because there is a huge dividend that needs to be taken into account. Now, while the opportunity is all about speculation- one can still find a yield worth 10%. The company has never been a payer of regular dividends but has been paying something special in the last four years. If it continues to pay at $1 till February, the yield would be close to 12%.
TLYS’s Leans Hard On eCommerce
While there is no one questioning the dexterity of TLYS in the field of eCommerce, there are certain questions that need to be answered. One of them is, how long would it be able to sustain its business through eCommerce? This is in relation to the brands it works for having their own eCommerce portal. Nevertheless, the revenue for the company did accelerate from the second to the third- and went beyond the consensus by close to 700 points.
Regardless of the outbounds, the shares of TLYS have not reclaimed their levels that were present before COVID. But, it is hardly surprising, considering the revenue has been down for the entire year- and shouldn’t technically rebound until the next year.