TLYS

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a return to trailing 12-month and year-to-date profitability, working toward producing what is expected to be the company's first profitable fiscal year since 2022 through disciplined inventory and labor management. Delivered a third consecutive quarter of double-digit comparable sales growth, fueled by broad-based strength across all departments except footwear. Realized 140 basis points of product margin improvement, attributed to healthier full-price selling and AI-driven price optimization for aged clearance inventory. Leveraged digital growth of 20.9% by expanding presence on emerging social platforms like TikTok, which helped grow the active loyalty program to 4.6 million members. Maintained a lean inventory position with total dollars down 1.3% despite an 8.1% increase in total net sales, indicating significantly improved inventory productivity. Optimized the physical footprint by closing underperforming locations, ending the third quarter with an expected 214 total stores while still growing store-level sales by 5.1%. Q3 guidance assumes a comparable sales increase of 10% to 14%, accounting for potential historical trends where sales decelerate post-back-to-school season. Planned deployment of an AI-driven smart inventory allocation tool to enhance unit and sizing accuracy across the store fleet and online channels. Scheduled implementation of RFID technology starting with footwear in early 2027 to improve size availability and in-store operational efficiency. Targeting 5 to 8 new store openings for fiscal 2027, contingent upon securing appropriate lease economics and market opportunities. Anticipates continued year-over-year profit improvement in Q3, which would represent the sixth consecutive quarter of bottom-line growth. SG&A expenses included a $1.5 million bonus accrual due to performance exceeding internal targets, a cost that had not existed in the model for four years. Maintained a debt-free balance sheet with total liquidity expected to reach approximately $125 million by the end of the third quarter. Income tax results continue to be impacted by a full non-cash deferred tax asset valuation allowance, resulting in a low-to-mid teens effective tax rate for Q3. Occupancy cost savings from a reduced store count were largely offset by higher e-commerce shipping expenses associated with rapid digital sales growth. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that the 14.6% August comp was broad-based across geographies and departments, with the exception of footwear which required some inventory chasing. The momentum is attributed to a well-positioned back-to-school assortment and continuous sharpening of the product mix by the merchandising team. Management clarified that recent performance inflections do not fundamentally change brand conversations, as Tilly's is already viewed as a strong retail partner. Strategic focus remains on identifying brands that fit the Tilly's customer base rather than using financial recovery as a primary recruitment tool. The Q3 range accounts for the fact that in three of the last four years, comps decelerated by approximately 8 points after the need-based back-to-school period ended. October is identified as the toughest year-over-year comparison for the quarter, despite being the smallest month by volume. Tilly's has 20 lease decisions remaining for the current fiscal year and expects to retain all of those locations. Approximately 60 to 65 leases expire in fiscal 2027, with most decisions occurring 15 to 16 months out; management does not currently foresee significant additional closures.

This article first appeared on GuruFocus. Total Net Sales: $163.5 million, an increase of 8.1% year-over-year. Comparable Net Sales: Increased 12.1%, marking the third consecutive quarter of double-digit growth. E-commerce Net Sales: Increased 20.9%, representing 21.1% of total net sales. Physical Store Net Sales: Increased 5.1%, representing 78.9% of total net sales. Gross Margin: Improved by 300 basis points to 35.5% of net sales. Product Margins: Improved by 140 basis points year-over-year. SG&A Expenses: $49.9 million, or 30.5% of net sales, compared to $46.4 million, or 30.7% of net sales last year. Pre-Tax Income: $8.5 million, or 5.2% of net sales, compared to $3.1 million last year. Net Income: $8.4 million, or $0.27 per diluted share, compared to $3.2 million, or $0.10 per diluted share last year. Cash and Investments: $62.2 million at the end of the second quarter. Inventory: Decreased by 1.3% year-over-year. Store Count: Opened one new store and closed one store during the quarter; expects to end fiscal 2026 with 218 total stores. Fiscal August Comparable Net Sales: Increased 14.6% year-over-year. Warning! GuruFocus has detected 4 Warning Signs with TLYS. Is TLYS fairly valued? Test your thesis with our free DCF calculator. Release Date: September 02, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Tilly's Inc (NYSE:TLYS) delivered its third consecutive quarter of double-digit comparable net sales growth, with a 12.1% increase in Q2 and a 14.6% increase in fiscal August, marking 13 consecutive months of growth. The company achieved its fifth consecutive quarter of year-over-year profit improvement, returning to profitability on both a trailing four-quarter and year-to-date basis for the first time since fiscal 2022. Product margins improved by 140 basis points in Q2, driven by stronger full-price selling, more current inventory aging, and the positive impact of AI price optimization on clearance items. E-commerce net sales grew by 20.9% in Q2, supported by a near doubling of TikTok followers to over 325,000 and a 20% increase in active loyalty program membership to 4.6 million. The company maintains a debt-free balance sheet with $62.2 million in cash and investments, and no borrowings, providing strong liquidity of approximately $125 million expected at the end of Q3. Tilly's Inc (NYSE:TLYS) is investing in future growth with plans to launch an AI-driven smart inventory allocation tool and implement RFID in stores by early 2027, while tentatively targeting five to eight new store openings in fiscal 2027. Footwear was the only department that did not post a double-digit comp sales gain in Q2, indicating a specific weakness in that category. The company's Q3 guidance accounts for a potential deceleration in comp sales after back-to-school, as three of the last four years saw September comps slow by about eight points relative to August. SG&A expenses increased by $3.5 million in Q2, driven by $1.5 million in bonus accruals and $0.8 million in higher marketing expenses, which could pressure margins if sales growth slows. Total net sales from physical stores increased only 5.1% in Q2, despite a 12.1% total comp increase, due to operating 12 fewer stores year-over-year, reflecting a reduced physical footprint. The company expects to end fiscal 2026 with 218 total stores, a net decrease from the prior year, and faces 60 to 65 lease decisions in fiscal 2027, creating potential for further closures. Income tax expense remains impacted by a full non-cash deferred tax asset valuation allowance, which could limit future tax benefits despite returning to profitability. Q: Can you discuss the acceleration in August comps to nearly 15% despite tougher year-over-year comparisons, and what is driving this momentum?A: Michael Henry (CFO): The acceleration is broad-based, with almost all departments posting double-digit positive comps in the second quarter, a trend that continued through August. All departments except footwear were up double-digits, and the performance was consistent across geographies, reflecting strong momentum through the back-to-school season. Q: How do you feel about your inventory and assortment setup heading into the fall and holiday seasons, and are you in "chase mode"?A: Nathan Smith (CEO): We feel very strong about our positioning. During back-to-school, we were largely where we needed to be, with only a slight gap in footwear that we chased. Heading into fall and holiday, we feel good about our inventory levels, especially given that sales were up 8% while inventory dollars were down 1% in Q2. Our team is continually sharpening the assortment to stay well-positioned. Q: What is the single biggest swing factor that could determine whether you land at the top or bottom of your Q3 guidance range?A: Michael Henry (CFO): Most scenarios point toward the upper end of the range. However, in three of the last four years, comps decelerated by about 8 points in September after the back-to-school need-based period ended. We are allowing for a potential deceleration in September-October, and we acknowledge that October will be the toughest comparison of the quarter, as it had the strongest performance last year. Q: Given the strong two-year stack, can you hold a double-digit comp against the tough Q4 comparison from last year?A: Michael Henry (CFO): We haven't issued specific Q4 guidance yet, but the two-year stack suggests we can comp the 10% from last year. Whether it's single-digit or double-digit remains to be seen during the holiday season. We are planning for and expecting a positive comp in Q4, but it's too early to specify the extent. Q: With e-commerce growing and its mix increasing, does buying, distribution, and occupancy still leverage on a positive comp?A: Michael Henry (CFO): Yes, it has been leveraging as we've produced strong comps. Occupancy is mostly recognized on a straight-line basis, so dollars remain stable with a consistent store count. Distribution has relatively fixed elements, but e-commerce shipping costs are variable and move with volume. Buying costs remain consistent quarter-to-quarter as they are primarily salaries. Q: How many leases are up for renewal in the next 12 months, and what does the renewal spread look like versus expiring rent?A: Nathan Smith (CEO) & Michael Henry (CFO): We have 20 lease decisions left for this fiscal year and anticipate keeping all 20 stores. For fiscal 2027, we have roughly 60 to 65 lease decisions to make, and we've already begun conversations and agreed to certain terms. We don't currently know of any additional closures, though some may arise. Most leases expire toward the end of the fiscal year, so many 2027 decisions are still 15-16 months out. Q: Has the inflection in your business changed discussions with vendors or brands you previously wanted to bring into the store?A: Nathan Smith (CEO): The business inflection hasn't changed those conversations. We are a strong retailer, and brands understand the value of our customer base and store experience. Our discussions revolve around whether a brand is a great fit for Tilly's, rather than waiting for an inflection point. We are actively pursuing several brands and feel good about our prospects. Q: What is holding back SG&A leverage in Q3 guidance, given the strong positive comps?A: Michael Henry (CFO): SG&A should improve slightly as a percentage of sales relative to last year's Q3. However, bonus accruals are a significant factor, as we've returned to profitability and are beating targets significantly. This expense hasn't existed in our model for four years, so it's a non-comparable cost that may add more to SG&A than typically expected. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

IRVINE, Calif., September 02, 2026--(BUSINESS WIRE)--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%. 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. 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%. 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 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 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260902961851/en/ Contacts Investor Relations Contact:Michael L. HenryExecutive Vice President, Chief Financial Officer(949) 609-5599, ext. [email protected]

Interested in Tilly's, Inc.? Here are five stocks we like better. Tilly’s delivered strong fiscal Q2 results: Net sales rose 8.1% to $163.5 million, comparable sales increased 12.1% for the third consecutive quarter, and net income climbed to $8.4 million from $3.2 million. Profitability and liquidity improved: Gross margin expanded 300 basis points to 35.5% as inventory became more current, while cash and investments increased to $62.2 million and the company carried no borrowings. Momentum continued into the third quarter: August comparable sales rose 14.6%, and management expects Q3 comparable sales growth of 10%–14%, with net income forecast at $2.2 million–$3.7 million. Three Mall Retailers For Your Reopening Watchlist Tilly's (NYSE:TLYS) reported fiscal 2026 second-quarter results marked by double-digit comparable sales growth, wider gross margins and a significant increase in profitability, while management said momentum continued through the key back-to-school period. Total net sales for the quarter rose 8.1% year over year to $163.5 million. Comparable net sales, including stores and e-commerce, increased 12.1%, representing the company’s third consecutive quarter of double-digit comparable sales gains. Net income increased to $8.4 million, or $0.27 per diluted share, from $3.2 million, or $0.10 per share, a year earlier. → AST SpaceMobile Is Down 54%—Can FCC Progress and BlueBirds Reverse the Slide? Betting On Tilly’s Inc (NYSE:TLYS) 12% Yield President and CEO Nate Smith said the retailer has now generated four consecutive quarters and 13 consecutive months of year-over-year comparable net sales growth. He also pointed to improved merchandise margins, lower inventory levels and operating efficiencies as elements of the company’s turnaround. “We have now returned to profitability on a trailing four quarters basis, as well as on a year-to-date basis for fiscal 2026,” Smith said. He said Tilly’s generated just under $2 million of profit during the trailing four quarters and approximately $400,000 of year-to-date profit. → Palo Alto’s Rally Has One Big Problem Ahead of Earnings Physical-store net sales increased 5.1% despite the company operating 12 fewer stores than at the end of the prior-year second quarter. Stores accounted for 78.9% of quarterly sales, compared with 81.1% a year earlier. E-commerce sales climbed 20.9% and represented 21.1% of total revenue, up from 18.9% in the prior-year quarter. Smith said Tilly’s has expanded its presence on platforms used by its customers, including TikTok and other emerging channels. The company’s TikTok follower count nearly doubled to more than 325,000, while one-year active loyalty-program membership increased 20% from a year earlier to 4.6 million members. → Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season Smith said all merchandise departments except footwear posted double-digit comparable sales increases in the second quarter. Apparel performance was strong among both proprietary and third-party brands, he said. Store sales were supported by conversion, units per transaction and average sale growth, with comparable sales gains across all geographic markets. During the analyst question-and-answer session, Chief Financial Officer Mike Henry said the broad-based sales trends continued through August, with nearly all departments posting double-digit gains. Gross margin improved 300 basis points to 35.5% of net sales from 32.5% a year earlier. Product margin rose 140 basis points, which Henry attributed primarily to stronger full-price sales of more current inventory and improved clearance-item productivity. Buying, distribution and occupancy costs improved 160 basis points as the company spread those expenses over higher sales. Balance-sheet inventory declined 1.3% from the end of the prior-year second quarter and was more current, with inventory aged within 90 days several percentage points higher than a year earlier. Smith said the retailer was “largely speaking where we needed to be” on inventory during back-to-school, though footwear had a gap that required some chasing. He said management feels positive about its fall and holiday assortment and continues to refine merchandise selections weekly. Tilly’s also cited technology investments intended to support inventory management and pricing. The company’s AI-driven price-optimization tool, launched in October of the prior year, has helped improve average unit retails on aged clearance merchandise, according to Smith. Tilly’s plans to launch an AI-based inventory-allocation tool and begin implementing RFID in stores in early 2027, starting in footwear. Selling, general and administrative expense rose to $49.9 million from $46.4 million, but declined 20 basis points as a percentage of sales to 30.5%. The quarter included $1.5 million of bonus accruals tied to operating performance exceeding budgeted sales and earnings targets. Marketing spending increased $0.8 million, while store payroll and related benefits rose $0.6 million but improved 70 basis points as a percentage of sales. The company ended the quarter with $62.2 million in cash and investments, up from $50.7 million a year earlier, and reported no borrowings. Available undrawn borrowing capacity under its asset-backed credit facility was $63.3 million. Tilly’s opened stores in late July and early August and expects another opening in mid-November. It also closed one store in mid-July and expects additional closures through the end of the fiscal year, targeting 218 stores at year-end. For fiscal 2027, management is tentatively targeting five to eight new stores, subject to opportunities and lease economics. Henry said the company has 20 lease decisions remaining in fiscal 2026 and anticipates retaining all 20 stores. It expects roughly 60 to 65 lease decisions during fiscal 2027, though management said it does not yet know of specific additional closures. For fiscal August, which ended Aug. 29, Tilly’s reported a 14.6% comparable net sales increase, extending its comparable-sales growth streak to 13 months. For the fiscal third quarter, the company forecast: Net sales of approximately $150 million to $155 million. Comparable net sales growth of 10% to 14%. Slight product-margin improvement from the prior-year third quarter. SG&A expense of approximately $47 million to $49 million, excluding potential non-cash asset impairment charges. Net income of approximately $2.2 million to $3.7 million, or $0.07 to $0.12 per diluted share. The outlook compares with a net loss of $1.4 million, or $0.05 per share, in the prior-year third quarter. Henry said most internal scenarios point toward the upper end of the comparable-sales guidance range, but the company incorporated the possibility of a sales deceleration after the back-to-school period, as occurred in three of the past four years. Management expects to finish the third quarter with 220 stores and total liquidity of approximately $125 million or more, including roughly $62 million to $65 million of cash and investments and about $63 million of undrawn credit capacity. Tilly's, Inc is an American specialty retailer of casual apparel, footwear, accessories and hardgoods. Founded in 1982 by Hezy Shaked and Tilly Levine, the company has grown from a single denim and tops store in Garden Grove, California, to a nationwide retail chain. Headquartered in Irvine, California, Tilly's serves a youth-oriented market with an emphasis on surf, skate and streetwear brands. The company's merchandise assortment includes products from leading lifestyle brands such as Vans, Nike, Billabong and Quiksilver, alongside its own private-label offerings. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Tilly's Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Tilly's (TLYS) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.17 per share. This compares to earnings of $0.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +58.82%. A quarter ago, it was expected that this clothing and accessories retailer would post a loss of $0.33 per share when it actually produced a loss of $0.26, delivering a surprise of +21.21%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Tilly's, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $163.51 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 4.14%. This compares to year-ago revenues of $151.26 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Tilly's shares have added about 99% since the beginning of the year versus the S&P 500's gain of 11.5%. While Tilly's has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Tilly's was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.07 on $140.8 million in revenues for the coming quarter and -$0.06 on $580.75 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Apparel and Shoes is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Vera Bradley (VRA), has yet to report results for the quarter ended July 2026. The results are expected to be released on September 15. This handbag and accessories company is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of -300%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Vera Bradley's revenues are expected to be $65.96 million, down 6.9% from the year-ago quarter. 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 Tilly's, Inc. (TLYS) : Free Stock Analysis Report Vera Bradley, Inc. (VRA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Young adult apparel retailer Tilly’s (NYSE:TLYS) will be reporting earnings this Wednesday afternoon. Here’s what to look for. Tilly's beat analysts’ revenue expectations last quarter, reporting revenues of $124.7 million, up 15.9% year on year. It was a stunning quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ gross margin estimates. Is Tilly's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Tilly’s revenue to grow 3.8% year on year, a reversal from the 7.1% decrease it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Tilly's has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at Tilly’s peers in the apparel retailer segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Abercrombie and Fitch delivered year-on-year revenue growth of 4.8%, beating analysts’ expectations by 1.8%, and Gap reported a revenue decline of 2%, falling short of estimates by 0.9%. Abercrombie and Fitch traded up 33.9% following the results while Gap was also up 12.7%. Read our full analysis of Abercrombie and Fitch’s results here and Gap’s results here. Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the apparel retailer stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.2% on average over the last month. Tilly's is up 5.3% during the same time and is heading into earnings with an average analyst price target of $5.50 (compared to the current share price of $4.18). ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.