Tilly's skids on weak summer quarter forecast

NEW YORK (AP) -- Shares of Tilly's plunged in aftermarket trading Wednesday after the retailer forecast a difficult summer, saying customer traffic is down and discounts on merchandise for teens are cutting into its profit.

The clothing and accessories company said a "tough retail environment" and less clearance merchandise had hurt results in the quarter that ended on May 3. Revenue at stores open at least a year, a key retail metric, fell 6.8 percent in the fiscal first quarter.

And Tilly's is pessimistic about the current period. It expects the measure to drop by a high-single-digit percentage if trends continue, with income of 3 to 7 cents per share.

Analysts had projected net income of 13 cents per share, according to FactSet.

For the quarter that just ended, the Irvine, California, company's net income shrank to $591,000, or 2 cents per share, from $2.3 million, or 8 cents per share, a year earlier. Revenue rose 2 percent, to $111.1 million from $109.1 million.

Analysts predicted net income of 2 cents per share and $113.2 million in revenue.

Shares of Tilly's Inc. fell $2.44, or 23 percent, to $8.14 in aftermarket after shedding 4 cents to $10.58 on Wednesday.