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Tilly's Doesn't Look Like A Good Bet At Current Prices

Despite struggling for the majority of the past twelve months, shares of teen-oriented retailer Tilly's (NASDAQ: [[TLYS]]) have been in rally mode lately, logging a solid 20% plus cumulative return. A major factor behind that rise was better-than-expected profitability for the company in its latest fiscal quarter, due in large part to an incrementally improved selling margin that was a byproduct of a more targeted promotional strategy. Also helping matters was a return to positive comparable store sales growth for Tilly's during the recently completed holiday season, estimated at 1 to 3%, which led management to up its profit forecast for the fiscal fourth quarter. However, with profit growth still elusive, is the company a good bet at current prices?

What's the value?

Tilly's is a rising player in the teen-oriented segment of the retail sector, operating a network of approximately 200 stores that target the teen age… Read More …