Tilly's Q2 net income rises to $8.4M on sales growth
Tilly’s posts strong Q2 2026 sales and margin gains, returns to year-to-date profitability, and guides to continued revenue and earnings improvement in Q3.
Rhea-AI Filing Summary
Tilly’s, Inc. (TLYS) reported significantly improved results for the second quarter of fiscal 2026, with net sales rising to $163.5 million, up 8.1% year over year, and total comparable net sales increasing 12.1%. Net income grew to $8.4 million ($0.27 per diluted share) from $3.2 million ($0.10 per diluted share).
Gross profit expanded to $58.1 million, or 35.5% of net sales, improving 300 basis points as product margins rose for the seventh consecutive quarter and leverage on fixed costs improved. Operating income increased to $8.2 million, or 5.0% of net sales, compared to $2.7 million, or 1.8%, last year.
For the first half of fiscal 2026, Tilly’s swung to a modest profit of $0.4 million from a $19.0 million loss, with net sales up 11.3% and comparable net sales up 16.5%. The company ended the quarter with $125.5 million of available liquidity and guided to third-quarter net sales of $150–$155 million and net income of $2.2–$3.7 million, which would mark a sixth consecutive quarter of year-over-year profit improvement.
Positive
- Q2 net sales grew 8.1% to $163.5 million, with total comparable net sales up 12.1%, showing broad-based demand across stores and e-commerce.
- Q2 gross margin improved 300 bps to 35.5% of net sales, driven by 140 bps higher product margins and better leverage on buying, distribution, and occupancy costs.
- Q2 operating income tripled to $8.2 million (5.0% margin) from $2.7 million (1.8% margin), reflecting stronger sales and cost discipline.
- First-half results swung to a profit of $0.4 million from a $19.0 million loss, with net sales up 11.3% and comparable net sales up 16.5%.
- Liquidity is robust at $125.5 million, including $62.2 million in cash, cash equivalents and marketable securities and $63.3 million of undrawn ABL capacity.
- Q3 guidance calls for continued growth, with net sales of $150–$155 million, comparable net sales up 10–14%, and net income of $2.2–$3.7 million versus a prior-year loss.
Negative
- Store base continues to contract, with 220 stores at Q2-end versus 232 a year earlier and an expectation of 220 vs. 230 at the end of Q3, reflecting ongoing physical footprint reduction.
Filing Explained
As of August 1, 2026, $125.5 million of liquidity consisted of $62.2 million held and $63.3 million of undrawn borrowing capacity.
This Form 8-K furnishes the company’s second-quarter fiscal 2026 earnings release under Item 2.02; results for the quarter ended
That liquidity comprises
The release expects approximately 220 stores and at least approximately
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Q2 2026 Net Sales: $163.5 million
Q2 2026 Total Comparable Net Sales Increase: 12.1%
Q2 2026 Gross Margin: 35.5% of net sales
+5 more
8 metrics
Q2 2026 Net Sales
$163.5 million
Thirteen weeks ended August 1, 2026, up 8.1% year over year
Q2 2026 Total Comparable Net Sales Increase
12.1%
Includes physical stores and e-commerce versus Q2 2025
Q2 2026 Gross Margin
35.5% of net sales
Gross profit $58.1 million vs. 32.5% last year, +300 bps
Q2 2026 Operating Income
$8.2 million
5.0% of net sales vs. $2.7 million, 1.8%, in Q2 2025
Q2 2026 Net Income
$8.4 million
Earnings of $0.27 per diluted share vs. $3.2 million, $0.10, last year
First-Half 2026 Net Sales
$288.2 million
Twenty-six weeks ended August 1, 2026, up 11.3% year over year
First-Half 2026 Net Income (Loss)
$0.4 million
Improved from a net loss of $19.0 million in the first half of 2025
Total Liquidity
$125.5 million
As of August 1, 2026, cash, cash equivalents, marketable securities and undrawn credit facility
Key Terms
comparable net sales, gross profit, asset-backed credit facility, valuation allowance, +1 more
5 terms
comparable net sales financial
"We have now produced four consecutive quarters of year-over-year comparable net sales growth"
"Comparable net sales" shows how much a company's sales have grown or shrunk compared to the same period last year, excluding new stores or closures. It helps investors see if the core business is doing well, much like checking if a restaurant's sales are up because more people are dining there, not just because the restaurant opened new locations.
gross profit financial
"Gross profit, including buying, distribution, and occupancy costs, was $58.1 million"
Gross profit is the amount a business keeps from sales after subtracting the direct costs to make or buy the products or services sold — like the money left from a lemonade stand after paying for lemons, sugar and cups. Investors watch gross profit to judge how well a company’s core operations and pricing cover those direct costs, revealing its basic profitability and whether margins are improving or shrinking over time.
asset-backed credit facility financial
"available, undrawn borrowing capacity under its asset-backed credit facility"
An asset-backed credit facility is a type of loan where a borrower borrows money using valuable assets, like inventory or property, as collateral. If they can't repay the loan, the lender can take those assets to recover their money. It matters because it helps companies get funding more easily by promising assets they already own.
valuation allowance financial
"continuing impact of a full, non-cash deferred tax asset valuation allowance"
A valuation allowance is a reserve set aside to reduce the value of certain assets on a company's financial records when there is uncertainty about whether they will generate the expected benefits. It acts like a caution sign, indicating that some assets might not be fully recoverable or worth their recorded amount. This matters to investors because it provides a more realistic picture of a company's financial health and potential risks.
forward-looking statements regulatory
"Certain statements in this press release are forward-looking statements"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Earnings Snapshot
Q2 2026 Net Sales: $163.5 million · Guidance included
Second quarter and first half of fiscal 2026 ended August 1, 2026
Q2 2026 Net Sales
$163.5 million
Up 8.1% from $151.3 million in Q2 2025
Q2 2026 Gross Margin
35.5%
Improved 300 basis points from 32.5% in Q2 2025
Q2 2026 Net Income
$8.4 million
Up from $3.2 million in Q2 2025
First-Half 2026 Net Sales
$288.2 million
Up 11.3% from $258.9 million in first-half 2025
First-Half 2026 Net Income (Loss)
$0.4 million
Improved from a $19.0 million loss in first-half 2025
Q3 2026 Net Sales Guidance
$150–$155 million
Implied comparable net sales increase of 10–14% vs. Q3 2025
Q3 2026 EPS Guidance
$0.07–$0.12 per diluted share
Versus a loss of $0.05 per share in Q3 2025
Guidance
For Q3 2026, Tilly’s estimates net sales of $150–$155 million, comparable net sales up 10–14%, SG&A expenses of $47–$49 million, an effective tax rate in the low to mid-teens, and net income of $2.2–$3.7 million or $0.07–$0.12 per diluted share.
FAQ
How did Tilly’s (TLYS) perform in Q2 fiscal 2026 versus last year?
Tilly’s reported Q2 2026 net sales of $163.5 million, up 8.1%, and total comparable net sales up 12.1%. Net income rose to $8.4 million ($0.27 per diluted share) from $3.2 million ($0.10 per diluted share) in the prior-year quarter.
What happened to TLYS’s profitability and margins in Q2 2026?
Q2 2026 gross profit was $58.1 million, or 35.5% of net sales, up from 32.5%, a 300-basis-point margin improvement. Operating income increased to $8.2 million, or 5.0% of net sales, versus $2.7 million, or 1.8%, a year earlier.
Did Tilly’s (TLYS) return to profitability for the first half of fiscal 2026?
Yes. For the first half of fiscal 2026, Tilly’s reported net income of $0.4 million compared to a net loss of $19.0 million last year. Net sales rose 11.3% to $288.2 million, and total comparable net sales increased 16.5%.
What is Tilly’s (TLYS) liquidity position as of August 1, 2026?
As of August 1, 2026, Tilly’s had total liquidity of $125.5 million, including $62.2 million of cash, cash equivalents and marketable securities and $63.3 million of available, undrawn borrowing capacity under its asset-backed credit facility.
What guidance did Tilly’s (TLYS) provide for Q3 fiscal 2026?
For Q3 2026, Tilly’s expects net sales of $150–$155 million, implying comparable net sales up 10–14%, SG&A expenses of $47–$49 million, and net income of $2.2–$3.7 million, or $0.07–$0.12 per diluted share, versus a $1.4 million loss last year.
How are Tilly’s (TLYS) stores and e-commerce performing?
In Q2 2026, store net sales were $129.0 million, up 5.1%, with store comparable net sales up 10.3%. E-commerce net sales were $34.5 million, up 20.9%, representing 21.1% of total net sales versus 18.9% a year earlier.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________
FORM 8-K
_______________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): September 2, 2026
_______________________________________________
(Exact Name of Registrant as Specified in its Charter)
(State of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) | ||||||||||||
(Address of Principal Executive Offices) (Zip Code)
(Registrant’s Telephone Number, Including Area Code)
______________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 | Results of Operations and Financial Condition | ||||
On September 2, 2026, Tilly's, Inc. (the "Company") issued an earnings press release for the second quarter ended August 1, 2026. The press release is furnished as Exhibit 99.1 and is incorporated herein by reference. The information furnished pursuant to this Item 2.02, including Exhibit 99.1 attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01 | Financials Statements and Exhibits | ||||
The following exhibits are being furnished herewith.
(d) Exhibits.
Exhibit No. | Exhibit Title or Description | ||||
| 99.1 | Press Release of Tilly's, Inc., dated September 2, 2026. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TILLY’S, INC. | ||||||||
| Date: September 2, 2026 | By: | /s/ Michael L. Henry | ||||||
| Name: | Michael L. Henry | |||||||
| Title: | Executive Vice President, Chief Financial Officer | |||||||
Exhibit 99.1
Tilly's, Inc. Beats Outlook, Reports Third Consecutive Quarter of Double-Digit Percentage Comp Sales Increases
Irvine, CA –September 2, 2026 – Tilly’s, Inc. (NYSE: TLYS, the "Company") today announced financial results for the second quarter of fiscal 2026 ended August 1, 2026.
"We maintained our positive operating momentum throughout the second quarter and the important back-to-school season. We have now produced four consecutive quarters of year-over-year comparable net sales growth and, inclusive of fiscal August to start the third quarter, thirteen consecutive months of year-over-year comparable net sales growth. We also delivered our fifth consecutive quarter of year-over-year profit improvement in the second quarter," commented Nate Smith, President and Chief Executive Officer. "We are now profitable on a trailing four quarters basis and on a year-to-date basis for fiscal 2026. Based on our year-to-date performance and assuming our positive momentum continues, we believe we are well positioned to produce our first profitable fiscal year since 2022."
Operating Results Overview
Fiscal 2026 Second Quarter Compared to Fiscal 2025 Second Quarter
The following comparisons refer to the Company's operating results for the second quarter of fiscal 2026 ended August 1, 2026 versus the second quarter of fiscal 2025 ended August 2, 2025.
•Total net sales were $163.5 million, an increase of 8.1%. Total comparable net sales, including both physical stores and e-commerce ("e-com"), increased by 12.1%.
◦Net sales from physical stores were $129.0 million, an increase of 5.1%. The Company ended the second quarter with 220 total stores, a decrease of 12 stores or 5.2%, compared to 232 total stores at the end of the second quarter last year. Comparable net sales from physical stores increased by 10.3% relative to the comparable 13-week period ended August 2, 2025. Net sales from physical stores represented 78.9% of total net sales this year compared to 81.1% of total net sales last year.
◦Net sales from e-com were $34.5 million, an increase of 20.9%. E-com net sales represented 21.1% of total net sales this year compared to 18.9% of total net sales last year.
•Gross profit, including buying, distribution, and occupancy costs, was $58.1 million, or 35.5% of net sales, an improvement of $9.0 million or 300 basis points as a percentage of net sales compared to $49.1 million, or 32.5% of net sales, last year. Product margins improved by 140 basis points as a percentage of net sales, marking the Company's seventh consecutive quarter with year-over-year product margin improvement. Buying, distribution, and occupancy costs improved by 160 basis points as a percentage of net sales due to carrying these costs against higher net sales this year. Lower occupancy costs primarily associated with our reduced store count were largely offset by higher e-com shipping expenses associated with e-com net sales growth.
•Selling, general and administrative ("SG&A") expenses were $49.9 million, or 30.5% of net sales, compared to $46.4 million, or 30.7% of net sales, last year. The $3.5 million increase in SG&A was primarily attributable to incentive bonus accruals of $1.5 million associated with achieving improved operating performance, marketing expenses of $0.8 million, and store payroll and related benefits of $0.6 million. SG&A expenses improved by 20 basis points as a percentage of net sales due to carrying these expenses against higher net sales this year.
•Operating income improved to $8.2 million, or 5.0% of net sales, compared to $2.7 million, or 1.8% of net sales, last year, due to the combined impact of the factors noted above.
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•Income tax expense was $0.1 million, or 1.0% of pre-tax income, compared to an income tax benefit of $41 thousand, or (1.3)% of pre-tax income, last year. Both periods include the continuing impact of a full, non-cash deferred tax asset valuation allowance.
•Net income was $8.4 million, or $0.27 per diluted share, an improvement of $5.2 million or $0.17 per diluted share, compared to $3.2 million, or $0.10 per diluted share, last year. Weighted average diluted shares were 31.2 million this year compared to 30.3 million diluted shares last year.
Fiscal 2026 First Half Compared to Fiscal 2025 First Half
The following comparisons refer to the Company's operating results for the first half of fiscal 2026 ended August 1, 2026 versus the first half of fiscal 2025 ended August 2, 2025.
•Total net sales were $288.2 million, an increase of 11.3%. Total comparable net sales, including both physical stores and e-commerce ("e-com"), increased by 16.5%.
◦Net sales from physical stores were $225.3 million, an increase of 8.0%. Comparable net sales from physical stores increased by 14.5% relative to the comparable 26-week period ended August 2, 2025. Net sales from physical stores represented 78.2% of total net sales this year compared to 80.6% of total net sales last year.
◦Net sales from e-com were $62.9 million, an increase of 25.2%. E-com net sales represented 21.8% of total net sales this year compared to 19.4% of total net sales last year.
•Gross profit, including buying, distribution, and occupancy costs, was $94.2 million, or 32.7% of net sales, an improvement of $23.8 million or 550 basis points as a percentage of net sales compared to $70.4 million, or 27.2% of net sales, last year. Product margins improved by 240 basis points primarily due to improved full-price selling associated with operating with inventories that were more current in terms of aging compared to last year as well as improved average unit retail prices on aged, clearance items. Buying, distribution, and occupancy costs improved by 310 basis points due to carrying these costs against higher net sales this year. Lower occupancy costs largely associated with our reduced store count were partially offset by higher e-com shipping expenses associated with e-com net sales growth.
•SG&A expenses were $94.1 million, or 32.6% of net sales, compared to $90.4 million, or 34.9% of net sales, last year. The $3.7 million increase in SG&A was primarily attributable to incentive bonus accruals of $1.9 million associated with achieving improved operating performance, marketing expenses of $1.4 million, and store payroll and related benefits of $1.1 million. These increases were partially offset by a decrease in non-cash store asset impairment charges of $1.1 million. SG&A expenses improved by 230 basis points as a percentage of net sales due to carrying these expenses against higher net sales this year.
•Operating income was $75 thousand, or 0.0% of net sales, an improvement of $20.1 million compared to an operating loss of $(20.0) million, or (7.7)% of net sales, last year, due to the combined impact of the factors noted above.
•Income tax expense was $0.2 million, or 34.3% of pre-tax income, compared to an income tax benefit of $0.2 million, or 0.9% of pre-tax loss, last year. The effective tax rate for the current period exceeded the combined federal and state statutory tax rate primarily due to state tax true-up adjustments, the impact of tax rate changes, and changes in the valuation allowance.
•Net income was $0.4 million, or $0.01 per diluted share, an improvement of $19.4 million or $0.64 per diluted share, compared to a net loss of $(19.0) million, or $(0.63) per share, last year. Weighted average diluted shares were 30.8 million this year compared to 30.1 million shares last year.
Balance Sheet and Liquidity
As of August 1, 2026, the Company had total available liquidity of $125.5 million, comprised of $62.2 million of cash, cash equivalents, and marketable securities and $63.3 million of available, undrawn borrowing capacity under its asset-backed credit facility. Total cash and cash equivalents were $50.7 million at August 2, 2025. Total inventories decreased by 1.3% compared to the end of the second
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quarter last year. Total year-to-date capital expenditures at the end of the second quarter were $2.8 million this year compared to $2.1 million at the end of the second quarter of fiscal 2025.
Fiscal 2026 Third Quarter Outlook
Total comparable net sales for fiscal August ended August 29, 2026 increased by 14.6% relative to the comparable period of fiscal 2025, marking the Company's 13th consecutive month of comparable net sales growth. Based on current and historical trends, the Company currently estimates the following for the third quarter of fiscal 2026 ending October 31, 2026:
•Net sales in the range of approximately $150 million to $155 million, translating to an estimated comparable net sales increase of 10% to 14%, respectively, relative to last year's third quarter;
•Product margins to be slightly improved compared to last year's third quarter;
•SG&A expenses to be approximately $47 million to $49 million;
•An estimated effective income tax rate in the low to mid-teens as a percentage of pre-tax income, with the continuing impact of a full, non-cash valuation allowance on deferred tax assets; and
•Net income of approximately $2.2 million to $3.7 million, respectively to net sales, and net income per diluted share of $0.07 to $0.12, respectively, based on approximately 32.0 million diluted shares. This compares to a net loss of $(1.4) million, or $(0.05) per share, during last year's third quarter. These results would represent a 6th consecutive quarter of year-over-year profit improvement for the Company.
•The Company currently expects to have 220 stores open at the end of the third quarter of fiscal 2026 compared to 230 at the end of last year's third quarter.
•The Company expects to end the third quarter with total liquidity of approximately $125 million or more, comprised of cash and investments of approximately $62 million to $65 million and available, undrawn borrowing capacity of approximately $63 million under its asset-back credit facility.
Conference Call Information
A conference call with analysts to discuss these financial results is scheduled for today, September 2, 2026, at 4:30 p.m. ET (1:30 p.m. PT). Analysts interested in participating in the call are invited to dial (877) 423-9813 (domestic) or (201) 689-8573 (international). The conference call will also be available to interested parties through a live webcast at www.tillys.com. Please visit the website and select the “Investor Relations” link at least 15 minutes prior to the start of the call to register and download any necessary software. A telephone replay of the call will be available until September 9, 2026, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 13762136.
About Tillys
Tillys is a destination specialty retailer of casual apparel, footwear, and accessories for young men, young women, boys and girls with an extensive selection of iconic global, emerging, and proprietary brands rooted in an active, outdoor and social lifestyle. Tillys is headquartered in Irvine, California and currently operates 221 total stores across 32 states, as well as its website, www.tillys.com.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, statements regarding our current operating expectations in light of historical results, the improvement in our comparable net sales trend and our ability to maintain or improve upon it, the impacts of inflation, tariffs, and potential recession on us and our customers, including on our future financial condition or operating results, expectations regarding changes in the macro-economic environment, customer traffic, our supply chain, our ability to properly manage our inventory levels, and any other statements about our future cash position, financial flexibility, expectations, plans, intentions, beliefs or prospects expressed by management are forward-looking
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statements. These forward-looking statements are based on management’s current expectations and beliefs, but they involve a number of risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to the impact of inflation on consumer behavior and our business and operations, supply chain difficulties, and our ability to respond thereto, our ability to respond to changing customer preferences and trends, attract customer traffic at our stores and online, execute our growth and long-term strategies, expand into new markets, grow our e-commerce business, effectively manage our inventory and costs, effectively compete with other retailers, attract talented employees, or enhance awareness of our brand and brand image, general consumer spending patterns and levels, including changes in historical spending patterns, the markets generally, our ability to satisfy our financial obligations, including under our credit facility and our leases, and other factors that are detailed in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”), including those detailed in the section titled “Risk Factors” and in our other filings with the SEC, which are available on the SEC’s website at www.sec.gov and on our website at www.tillys.com under the heading “Investor Relations”. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We do not undertake any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. This release should be read in conjunction with our financial statements and notes thereto contained in our Form 10-K.
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Tilly’s, Inc.
Consolidated Balance Sheets
(In thousands, except par value)
(unaudited)
| August 1, 2026 | January 31, 2026 | August 2, 2025 | |||||||||||||||
| ASSETS | |||||||||||||||||
| Current assets: | |||||||||||||||||
| Cash and cash equivalents | $ | 52,334 | $ | 46,313 | $ | 50,680 | |||||||||||
| Marketable securities | 9,863 | — | — | ||||||||||||||
| Receivables | 12,585 | 6,093 | 10,410 | ||||||||||||||
| Merchandise inventories | 80,161 | 61,692 | 81,229 | ||||||||||||||
| Prepaid expenses and other current assets | 6,975 | 11,095 | 8,251 | ||||||||||||||
| Total current assets | 161,918 | 125,193 | 150,570 | ||||||||||||||
| Operating lease assets | 151,385 | 150,364 | 157,342 | ||||||||||||||
| Property and equipment, net | 32,087 | 33,504 | 35,844 | ||||||||||||||
| Other assets | 1,757 | 1,699 | 1,775 | ||||||||||||||
| TOTAL ASSETS | $ | 347,147 | $ | 310,760 | $ | 345,531 | |||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
| Current liabilities: | |||||||||||||||||
| Accounts payable | $ | 42,349 | $ | 21,717 | $ | 41,703 | |||||||||||
| Accrued expenses | 22,574 | 12,102 | 19,327 | ||||||||||||||
| Deferred revenue | 13,159 | 13,290 | 13,004 | ||||||||||||||
| Accrued compensation and benefits | 12,605 | 7,903 | 10,121 | ||||||||||||||
| Current portion of operating lease liabilities | 45,099 | 41,308 | 44,832 | ||||||||||||||
| Current portion of operating lease liabilities, related party | 3,914 | 3,745 | 3,581 | ||||||||||||||
| Other liabilities | 50 | 50 | 119 | ||||||||||||||
| Total current liabilities | 139,750 | 100,115 | 132,687 | ||||||||||||||
| Long-term liabilities: | |||||||||||||||||
| Noncurrent portion of operating lease liabilities | 110,300 | 113,305 | 116,205 | ||||||||||||||
| Noncurrent portion of operating lease liabilities, related party | 10,100 | 12,099 | 14,015 | ||||||||||||||
| Other liabilities | 75 | 99 | 124 | ||||||||||||||
| Total long-term liabilities | 120,475 | 125,503 | 130,344 | ||||||||||||||
| Total liabilities | 260,225 | 225,618 | 263,031 | ||||||||||||||
| Stockholders’ equity: | |||||||||||||||||
| Common stock (Class A) | 23 | 23 | 23 | ||||||||||||||
| Common stock (Class B) | 7 | 7 | 7 | ||||||||||||||
| Preferred stock | — | — | — | ||||||||||||||
| Additional paid-in capital | 178,049 | 176,755 | 175,648 | ||||||||||||||
| Accumulated deficit | (91,215) | (91,643) | (93,178) | ||||||||||||||
| Accumulated other comprehensive income | 58 | — | — | ||||||||||||||
| Total stockholders’ equity | 86,922 | 85,142 | 82,500 | ||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 347,147 | $ | 310,760 | $ | 345,531 | |||||||||||
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Tilly’s, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||
| August 1, 2026 | August 2, 2025 | August 1, 2026 | August 2, 2025 | ||||||||||||||||||||
| Net sales | $ | 163,508 | $ | 151,256 | $ | 288,226 | $ | 258,867 | |||||||||||||||
| Cost of goods sold (includes buying, distribution, and occupancy costs) | 104,481 | 101,222 | 192,195 | 186,616 | |||||||||||||||||||
| Rent expense, related party | 932 | 932 | 1,864 | 1,864 | |||||||||||||||||||
| Total cost of goods sold (includes buying, distribution, and occupancy costs) | 105,413 | 102,154 | 194,059 | 188,480 | |||||||||||||||||||
| Gross profit | 58,095 | 49,102 | 94,167 | 70,387 | |||||||||||||||||||
| Selling, general and administrative expenses | 49,789 | 46,291 | 93,826 | 90,132 | |||||||||||||||||||
| Rent expense, related party | 133 | 133 | 266 | 266 | |||||||||||||||||||
| Total selling, general and administrative expenses | 49,922 | 46,424 | 94,092 | 90,398 | |||||||||||||||||||
| Operating income (loss) | 8,173 | 2,678 | 75 | (20,011) | |||||||||||||||||||
| Other income, net | 294 | 446 | 576 | 844 | |||||||||||||||||||
| Income (loss) before income taxes | 8,467 | 3,124 | 651 | (19,167) | |||||||||||||||||||
| Income tax expense (benefit) | 86 | (41) | 223 | (180) | |||||||||||||||||||
| Net income (loss) | $ | 8,381 | $ | 3,165 | $ | 428 | $ | (18,987) | |||||||||||||||
| Basic net income (loss) per share of Class A and Class B common stock | $ | 0.28 | $ | 0.11 | $ | 0.01 | $ | (0.63) | |||||||||||||||
| Diluted net income (loss) per share of Class A and Class B common stock | $ | 0.27 | $ | 0.10 | $ | 0.01 | $ | (0.63) | |||||||||||||||
| Weighted average basic shares outstanding | 30,253 | 30,091 | 30,186 | 30,075 | |||||||||||||||||||
| Weighted average diluted shares outstanding | 31,159 | 30,266 | 30,824 | 30,075 | |||||||||||||||||||
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Tilly’s, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
| Twenty-Six Weeks Ended | |||||||||||
| August 1, 2026 | August 2, 2025 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net income (loss) | $ | 428 | $ | (18,987) | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 4,429 | 5,606 | |||||||||
| Stock-based compensation expense | 1,177 | 819 | |||||||||
| Impairment of assets | 6 | 1,134 | |||||||||
| Loss on disposal of assets | 4 | 18 | |||||||||
| Gain on maturities of marketable securities | (50) | (363) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Receivables | (5,277) | (6,054) | |||||||||
| Merchandise inventories | (18,469) | (12,051) | |||||||||
| Prepaid expenses and other assets | 4,650 | 2,599 | |||||||||
| Accounts payable | 20,596 | 30,570 | |||||||||
| Accrued expenses | 9,319 | 6,927 | |||||||||
| Accrued compensation and benefits | 4,702 | 703 | |||||||||
| Operating lease liabilities | (2,868) | (3,869) | |||||||||
| Deferred revenue | (131) | (1,112) | |||||||||
| Other liabilities | (24) | (90) | |||||||||
| Net cash provided by operating activities | 18,492 | 5,850 | |||||||||
| Cash flows from investing activities | |||||||||||
| Purchases of marketable securities | (14,755) | — | |||||||||
| Purchases of property and equipment | (2,833) | (2,051) | |||||||||
| Proceeds from maturities of marketable securities | 5,000 | 25,816 | |||||||||
| Proceeds from sale of property and equipment | — | 9 | |||||||||
| Net cash (used in) provided by investing activities | (12,588) | 23,774 | |||||||||
| Cash flows from financing activities | |||||||||||
| Proceeds from exercise of stock options | 117 | — | |||||||||
| Net cash provided by financing activities | 117 | — | |||||||||
| Change in cash and cash equivalents | 6,021 | 29,624 | |||||||||
| Cash and cash equivalents, beginning of period | 46,313 | 21,056 | |||||||||
| Cash and cash equivalents, end of period | $ | 52,334 | $ | 50,680 | |||||||
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Tilly's, Inc.
Store Count and Square Footage
| Store Count at Beginning of Quarter | New Stores Opened During Quarter | Stores Permanently Closed During Quarter | Store Count at End of Quarter | Total Gross Square Footage End of Quarter (in thousands) | |||||||||||||||||||||||||
| 2025 Q1 | 240 | 1 | 3 | 238 | 1,707 | ||||||||||||||||||||||||
| 2025 Q2 | 238 | 1 | 7 | 232 | 1,657 | ||||||||||||||||||||||||
| 2025 Q3 | 232 | 2 | 4 | 230 | 1,642 | ||||||||||||||||||||||||
| 2025 Q4 | 230 | — | 7 | 223 | 1,593 | ||||||||||||||||||||||||
| 2026 Q1 | 223 | 1 | 4 | 220 | 1,568 | ||||||||||||||||||||||||
| 2026 Q2 | 220 | 1 | 1 | 220 | 1,569 | ||||||||||||||||||||||||
Investor Relations Contact:
Michael L. Henry
Executive Vice President, Chief Financial Officer
(949) 609-5599, ext. 17000
irelations@tillys.com
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