Tilly's, Inc. Beats Outlook, Reports Third Consecutive Quarter of Double-Digit Percentage Comp Sales Increases
IRVINE, Calif.--( 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.
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.
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:
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.
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
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
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
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