Tilly's, Inc. Exceeds Fiscal 2025 Third Quarter Earnings Outlook
IRVINE, Calif.--( BUSINESS WIRE)--Tilly’s, Inc. (NYSE: TLYS, the "Company") today announced financial results for the third quarter of fiscal 2025 ended November 1, 2025.
"The third quarter of fiscal 2025 produced our first quarter with comparable net sales growth since the fourth quarter of fiscal 2021, and that positive momentum has continued into this year's fourth quarter," commented Nate Smith, President and Chief Executive Officer. "Our third quarter results exceeded our expectations, which we believe demonstrates the effectiveness of our initiatives and our team's ability to execute. Great effort has gone into getting our business to this point, but we also recognize the work that remains to return the company to profitable growth. I am excited to be here with this team as we strive to continue building forward momentum in the fourth quarter and into fiscal 2026."
Operating Results Overview
Fiscal 2025 Third Quarter Compared to Fiscal 2024 Third Quarter
The following comparisons refer to the Company's operating results for the third quarter of fiscal 2025 ended November 1, 2025 versus the third quarter of fiscal 2024 ended November 2, 2024.
Fiscal 2025 Year-to-Date Third Quarter Compared to Fiscal 2024 Year-to-Date Third Quarter
The following comparisons refer to the Company's operating results for the first 39 weeks of fiscal 2025 ended November 1, 2025 versus the first 39 weeks of fiscal 2024 ended November 2, 2024.
Balance Sheet and Liquidity
As of November 1, 2025, the Company had total available liquidity of $100.7 million, comprised of $39.0 million of cash and cash equivalents and $61.6 million of available, undrawn borrowing capacity under its asset-backed credit facility. Total inventories decreased by 12.8% compared to the end of the third quarter last year. Total year-to-date capital expenditures at the end of the third quarter were $3.4 million this year compared to $6.7 million at the end of the third quarter of fiscal 2024.
Fiscal 2025 Fourth Quarter Outlook
Total comparable net sales for the fourth quarter of fiscal 2025 through December 2, 2025, increased by 6.7% relative to the comparable period ended December 3, 2024. Based on current and historical trends, the Company currently estimates the following for the fourth quarter of fiscal 2025 ending January 31, 2026:
Conference Call Information
A conference call with analysts to discuss these financial results is scheduled for today, December 3, 2025, 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 December 10, 2025, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 10204552.
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 230 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)
November 1,
2025
February 1,
2025
November 2,
2024
ASSETS
Current assets:
Cash and cash equivalents
$
39,041
$
21,056
$
26,407
Marketable securities
—
25,653
25,321
Receivables
4,685
4,094
6,136
Merchandise inventories
80,655
69,178
92,481
Prepaid expenses and other current assets
10,747
10,979
11,781
Total current assets
135,128
130,960
162,126
Operating lease assets
145,604
169,805
181,117
Property and equipment, net
34,373
40,139
42,603
Other assets
1,968
1,559
1,424
TOTAL ASSETS
$
317,073
$
342,463
$
387,270
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
37,223
$
11,120
$
32,577
Accrued expenses
12,527
12,750
12,771
Deferred revenue
12,651
14,116
13,333
Accrued compensation and benefits
6,920
9,418
8,127
Current portion of operating lease liabilities
41,367
48,384
49,944
Current portion of operating lease liabilities, related party
3,662
3,423
3,345
Other liabilities
80
172
210
Total current liabilities
114,430
99,383
120,307
Long-term liabilities:
Noncurrent portion of operating lease liabilities
107,840
126,216
135,724
Noncurrent portion of operating lease liabilities, related party
13,074
15,844
16,736
Other liabilities
112
149
192
Total long-term liabilities
121,026
142,209
152,652
Total liabilities
235,456
241,592
272,959
Stockholders’ equity:
Common stock (Class A)
23
23
23
Common stock (Class B)
7
7
7
Preferred stock
—
—
—
Additional paid-in capital
176,172
174,829
174,516
Accumulated deficit
(94,585
)
(74,191
)
(60,527
)
Accumulated other comprehensive income
—
203
292
Total stockholders’ equity
81,617
100,871
114,311
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
317,073
$
342,463
$
387,270
Tilly’s, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Thirteen Weeks Ended
Thirty-Nine Weeks Ended
November 1,
2025
November 2,
2024
November 1,
2025
November 2,
2024
Net sales
$
139,587
$
143,442
$
398,454
$
422,165
Cost of goods sold (includes buying, distribution, and occupancy costs)
96,068
105,314
282,684
307,939
Rent expense, related party
932
931
2,796
2,796
Total cost of goods sold (includes buying, distribution, and occupancy costs)
97,000
106,245
285,480
310,735
Gross profit
42,587
37,197
112,974
111,430
Selling, general and administrative expenses
44,371
51,118
134,503
146,734
Rent expense, related party
134
133
400
397
Total selling, general and administrative expenses
44,505
51,251
134,903
147,131
Operating loss
(1,918
)
(14,054
)
(21,929
)
(35,701
)
Other income, net
536
1,174
1,380
3,114
Loss before income taxes
(1,382
)
(12,880
)
(20,549
)
(32,587
)
Income tax expense (benefit)
25
(5
)
(155
)
(22
)
Net loss
$
(1,407
)
$
(12,875
)
$
(20,394
)
$
(32,565
)
Basic net loss per share of Class A and Class B common stock
$
(0.05
)
$
(0.43
)
$
(0.68
)
$
(1.08
)
Diluted net loss per share of Class A and Class B common stock
$
(0.05
)
$
(0.43
)
$
(0.68
)
$
(1.08
)
Weighted average basic shares outstanding
30,115
30,060
30,089
30,017
Weighted average diluted shares outstanding
30,115
30,060
30,089
30,017
Tilly’s, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
Thirty-Nine Weeks Ended
November 1,
2025
November 2,
2024
Cash flows from operating activities
Net loss
$
(20,394
)
$
(32,565
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
8,143
9,586
Stock-based compensation expense
1,343
1,744
Impairment of assets
1,144
3,605
Loss (gain) on disposal of assets
28
(45
)
Gain on maturities of marketable securities
(363
)
(1,449
)
Changes in operating assets and liabilities:
Receivables
(329
)
611
Merchandise inventories
(11,477
)
(29,322
)
Prepaid expenses and other assets
(219
)
900
Accounts payable
26,103
18,047
Accrued expenses
309
(159
)
Accrued compensation and benefits
(2,498
)
(1,775
)
Operating lease liabilities
(4,704
)
(5,422
)
Deferred revenue
(1,465
)
(1,624
)
Other liabilities
(129
)
(335
)
Net cash used in operating activities
(4,508
)
(38,203
)
Cash flows from investing activities
Purchases of marketable securities
—
(59,557
)
Purchases of property and equipment
(3,353
)
(6,678
)
Proceeds from maturities of marketable securities
25,816
83,500
Proceeds from sale of property and equipment
30
24
Net cash provided by investing activities
22,493
17,289
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
17,985
(20,620
)
Cash and cash equivalents, beginning of period
21,056
47,027
Cash and cash equivalents, end of period
$
39,041
$
26,407
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