Tilly's, Inc. Fiscal 2025 Fourth Quarter Results Exceed Expectations
IRVINE, Calif.--( BUSINESS WIRE)--Tilly’s, Inc. (NYSE: TLYS, the "Company") today announced financial results for the fourth quarter of fiscal 2025 ended January 31, 2026.
"Our positive comparable store net sales momentum accelerated in the fourth quarter of fiscal 2025 and produced our first profitable fourth quarter and full-year positive comp sales since fiscal 2021," commented Nate Smith, President and Chief Executive Officer. "Since turning positive in August, we have now produced seven consecutive months of comparable net sales growth, including February 2026 increasing by 20 percent. We are off to a strong start to fiscal 2026 and we feel optimistic about our prospects for the year."
Operating Results Overview
Fiscal 2025 Fourth Quarter Compared to Fiscal 2024 Fourth Quarter
The following comparisons refer to the Company's operating results for the fourth quarter of fiscal 2025 ended January 31, 2026 versus the fourth quarter of fiscal 2024 ended February 1, 2025.
Fiscal 2025 Full Year Operating Results Overview
The following comparisons refer to the Company's operating results for fiscal 2025 ended January 31, 2026 versus fiscal 2024 ended February 1, 2025.
Balance Sheet and Liquidity
As of January 31, 2026, the Company had total available liquidity of $87.8 million, comprised of $46.3 million of cash and cash equivalents and $41.5 million of available, undrawn borrowing capacity under its asset-backed credit facility. Total inventories decreased by 10.8% compared to the end of the fourth quarter last year. Total year-to-date capital expenditures at the end of the fourth quarter were $4.7 million this year compared to $8.2 million at the end of the fourth quarter of fiscal 2024.
Fiscal 2026 First Quarter Outlook
Total comparable net sales for the first fiscal month of fiscal 2026 ended February 28, 2026 increased by 20.1% relative to the comparable period of fiscal 2025. Based on current and historical trends, the Company currently estimates the following for the first quarter of fiscal 2026 ending May 2, 2026:
Promotion of Michael J. Cingolani to Chief Merchandising Officer
On March 10, 2026, the Company promoted Michael J. Cingolani to the position of Chief Merchandising Officer in recognition of his efforts and positive contributions to the Company's business performance since his appointment as Senior Vice President, General Merchandising Manager in November 2024.
Conference Call Information
A conference call with analysts to discuss these financial results is scheduled for today, March 11, 2026, at 4:30 p.m. ET (1:30 p.m. PT). Analysts interested in participating in the call are invited to dial (877) 300-8521 (domestic) or (412) 317-6026 (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 March 18, 2026, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 10206873.
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 224 total stores across 33 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.
Tilly’s, Inc.
Consolidated Balance Sheets
(In thousands, except par value)
(unaudited)
January 31,
2026
February 1,
2025
ASSETS
Current assets:
Cash and cash equivalents
$
46,313
$
21,056
Marketable securities
—
25,653
Receivables
6,093
4,094
Merchandise inventories
61,692
69,178
Prepaid expenses and other current assets
11,095
10,979
Total current assets
125,193
130,960
Operating lease assets
150,364
169,805
Property and equipment, net
33,504
40,139
Other assets
1,699
1,559
TOTAL ASSETS
$
310,760
$
342,463
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
21,717
$
11,120
Accrued expenses
12,102
12,750
Deferred revenue
13,290
14,116
Accrued compensation and benefits
7,903
9,418
Current portion of operating lease liabilities
41,308
48,384
Current portion of operating lease liabilities, related party
3,745
3,423
Other liabilities
50
172
Total current liabilities
100,115
99,383
Long-term liabilities:
Noncurrent portion of operating lease liabilities
113,305
126,216
Noncurrent portion of operating lease liabilities, related party
12,099
15,844
Other liabilities
99
149
Total long-term liabilities
125,503
142,209
Total liabilities
225,618
241,592
Stockholders’ equity:
Common stock (Class A)
23
23
Common stock (Class B)
7
7
Preferred stock
—
—
Additional paid-in capital
176,755
174,829
Accumulated deficit
(91,643
)
(74,191
)
Accumulated other comprehensive income
—
203
Total stockholders’ equity
85,142
100,871
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
310,760
$
342,463
Tilly’s, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Thirteen Weeks Ended
Fifty-Two Weeks Ended
January 31,
2026
February 1,
2025
January 31,
2026
February 1,
2025
Net sales
$
155,131
$
147,288
$
553,585
$
569,453
Cost of goods sold (includes buying, distribution, and occupancy costs)
102,707
108,090
385,391
416,029
Rent expense, related party
931
931
3,727
3,727
Total cost of goods sold (includes buying, distribution, and occupancy costs)
103,638
109,021
389,118
419,756
Gross profit
51,493
38,267
164,467
149,697
Selling, general and administrative expenses
48,770
52,280
183,273
199,014
Rent expense, related party
134
135
534
532
Total selling, general and administrative expenses
48,904
52,415
183,807
199,546
Operating income (loss)
2,589
(14,148
)
(19,340
)
(49,849
)
Other income, net
371
723
1,751
3,837
Income (loss) before income taxes
2,960
(13,425
)
(17,589
)
(46,012
)
Income tax expense (benefit)
18
239
(137
)
217
Net income (loss)
$
2,942
$
(13,664
)
$
(17,452
)
$
(46,229
)
Basic earnings (loss) per share of Class A and Class B common stock
$
0.10
$
(0.45
)
$
(0.58
)
$
(1.54
)
Diluted earnings (loss) per share of Class A and Class B common stock
$
0.10
$
(0.45
)
$
(0.58
)
$
(1.54
)
Weighted average basic shares outstanding
30,115
30,060
30,095
30,028
Weighted average diluted shares outstanding
30,261
30,060
30,095
30,028
Tilly’s, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
Fifty-Two Weeks Ended
January 31,
2026
February 1,
2025
Cash flows from operating activities
Net loss
$
(17,452
)
$
(46,229
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization
10,584
12,771
Stock-based compensation expense
1,926
2,057
Impairment of assets
1,155
4,366
Loss (gain) on disposal of assets
62
(29
)
Gain on maturities of marketable securities
(363
)
(1,823
)
Changes in operating assets and liabilities:
Receivables
(1,585
)
2,856
Merchandise inventories
7,486
(6,019
)
Prepaid expenses and other assets
(1,144
)
1,044
Accounts payable
10,572
(3,405
)
Accrued expenses
(374
)
73
Accrued compensation and benefits
(1,515
)
(484
)
Operating lease liabilities
(4,274
)
(6,019
)
Deferred revenue
(826
)
(841
)
Other liabilities
(154
)
(336
)
Net cash provided by (used in) operating activities
4,098
(42,018
)
Cash flows from investing activities
Purchases of marketable securities
—
(74,547
)
Purchases of property and equipment
(4,687
)
(8,224
)
Proceeds from maturities of marketable securities
25,816
98,500
Proceeds from sale of property and equipment
30
24
Net cash provided by investing activities
21,159
15,753
Cash flows from financing activities
Proceeds from exercise of stock options
—
294
Net cash provided by financing activities
—
294
Change in cash and cash equivalents
25,257
(25,971
)
Cash and cash equivalents, beginning of period
21,056
47,027
Cash and cash equivalents, end of period
$
46,313
$
21,056
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)
2024 Q1
248
2
4
246
1,784
2024 Q2
246
1
—
247
1,791
2024 Q3
247
—
1
246
1,780
2024 Q4
246
4
10
240
1,730
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