Tilly’s, Inc. TLYS reported stellar holiday sales numbers. Favorable market dynamics, a compelling merchandise assortment, and a shift in consumers’ preference for shopping at stores contributed to the results.This Irvine, CA-based company highlighted that total net sales jumped 16.5% to $173.3 million during the holiday shopping period — the nine-week period ended Jan 1, 2022 — compared with $148.7 million for last year’s nine-week period ended Jan 2, 2021.Impressively, total comparable net sales, including physical stores and e-commerce, rose 14.1% for the 2021 holiday period compared with an increase of 2.7% in the year-ago period.Let’s Take a Closer LookWe note that comparable net sales in physical stores surged 23.2% for the 2021 holiday period against a decline of 12.4% during the 2020 holiday period. The metric increased by a double-digit percentage in all but one of 14 geographic markets. Net sales in physical stores represented 74.5% of total net sales for the 2021 holiday period compared with 68.4% of total net sales during the 2020 holiday period.As customers preferred shopping at physical stores during the 2021 holiday season, e-commerce sales declined. We note that online sales saw a sharp rise in the 2020 holiday period, when government-mandated restrictions on customer traffic and lower store operating hours were in effect due to the pandemic. This resulted in higher online shopping.E-commerce net sales fell 5.7% during the 2021 holiday period versus an increase of 65.2% in the 2020 holiday period. Markedly, e-commerce net sales represented 25.5% of total net sales for the 2021 holiday period. However, when compared with the 2019 holiday period, e-commerce net sales showcased an increase of 57.4%.As of Jan 3, 2022, Tilly’s had $188.9 million of cash and marketable securities and no debt outstanding after paying an aggregate of $61.6 million in special cash dividends to shareholders in July and December 2021. Image Source: Zacks Investment ResearchOutlookTaking into account the robust performance in the holiday period as well as historical trends, Tilly’s anticipates posting the most profitable fourth quarter since becoming a public company. This specialty retailer of casual apparel, footwear and accessories expects to deliver the most profitable fiscal year on record.Management envisions fourth-quarter fiscal 2021 net sales between $203 million and $205 million and earnings in the range of 39-42 cents a share. Tilly’s expects to conclude the current fiscal year with 241 total stores after shuttering two stores in late January 2022.Shares of this Zacks Rank #1 (Strong Buy) company have risen 38.8% in the past year against the industry’s decline of 24.2%.3 More Stocks Looking Red HotHere are three more favorably ranked stocks — Abercrombie & Fitch ANF, Citi Trends CTRN and Capri Holdings CPRI.Abercrombie & Fitch, an omnichannel specialty retailer of apparel and accessories, flaunts a Zacks Rank #1. ANF has a trailing four-quarter earnings surprise of 112.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial year sales and EPS suggests growth of 21.2% and 758.9%, respectively, from the year-ago period.Citi Trends, a specialty value retailer of apparel, accessories and home trends, sports a Zacks Rank #1. CTRN has a trailing four-quarter earnings surprise of 79.5%, on average.The Zacks Consensus Estimate for Citi Trends’ current financial year sales and EPS suggests growth of 29.6% and 199.2%, respectively, from the year-ago period.Capri Holdings, a global fashion luxury group, carries a Zacks Rank #2 (Buy). The company’s bottom line has outperformed the Zacks Consensus Estimate by a wide margin in the trailing four quarters.The Zacks Consensus Estimate for Capri Holdings’ current financial year sales and EPS suggests growth of 33.2% and 181.1%, respectively, from the year-ago period. CPRI has an expected EPS growth rate of 32.2% for three-five years. Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100S of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report Citi Trends, Inc. (CTRN): Free Stock Analysis Report Tilly's, Inc. (TLYS): Free Stock Analysis Report Capri Holdings Limited (CPRI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research