Tilly's, Inc. Fiscal 2026 First Quarter Comp Sales Increase +22.9%
IRVINE, Calif.--( BUSINESS WIRE)--Tilly’s, Inc. (NYSE: TLYS, the "Company") today announced financial results for the first quarter of fiscal 2026 ended May 2, 2026.
"The turnaround momentum which began in fiscal 2025 continued through the first quarter of fiscal 2026, extending our streak of comparable net sales growth to three consecutive quarters and nine consecutive months, and delivering our fourth consecutive quarter of year-over-year profit improvement," commented Nate Smith, President and Chief Executive Officer. "Returning to profitability is our foremost goal for fiscal 2026. We believe the strength of our start to the fiscal year gives us a clear and credible path to get there, provided we can maintain a strong, positive sales trajectory throughout the year."
Operating Results Overview
Fiscal 2026 First Quarter Compared to Fiscal 2025 First Quarter
The following comparisons refer to the Company's operating results for the first quarter of fiscal 2026 ended May 2, 2026 versus the first quarter of fiscal 2025 ended May 3, 2025.
Balance Sheet and Liquidity
As of May 2, 2026, the Company had total available liquidity of $91.8 million, comprised of $41.1 million of cash, cash equivalents, and marketable securities and $50.7 million of available, undrawn borrowing capacity under its asset-backed credit facility. Total cash, cash equivalents, and marketable securities were $37.2 million at May 3, 2025. Total inventories decreased by 6.4% compared to the end of the first quarter last year. Total year-to-date capital expenditures at the end of the first quarter was $1.4 million this year compared to $1.5 million at the end of the first quarter of fiscal 2025.
Fiscal 2026 Second Quarter Outlook
Total comparable net sales for fiscal May ended May 30, 2026 increased by 8.3% relative to the comparable period of fiscal 2025, marking the Company's 10th consecutive month of comparable net sales growth. Based on current and historical trends, the Company currently estimates the following for the second quarter of fiscal 2026 ending August 1, 2026:
Conference Call Information
A conference call with analysts to discuss these financial results is scheduled for today, June 3, 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) 689-8537 (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 June 10, 2026, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 13760460.
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 220 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)
May 2,
2026
January 31,
2026
May 3,
2025
ASSETS
Current assets:
Cash and cash equivalents
$
31,244
$
46,313
$
27,231
Marketable securities
9,876
—
9,973
Receivables
6,086
6,093
4,914
Merchandise inventories
70,703
61,692
75,572
Prepaid expenses and other current assets
8,101
11,095
9,297
Total current assets
126,010
125,193
126,987
Operating lease assets
157,054
150,364
167,369
Property and equipment, net
32,519
33,504
37,876
Other assets
1,542
1,699
1,919
TOTAL ASSETS
$
317,125
$
310,760
$
334,151
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
28,434
$
21,717
$
31,778
Accrued expenses
14,720
12,102
12,317
Deferred revenue
12,985
13,290
13,305
Accrued compensation and benefits
7,202
7,903
7,537
Current portion of operating lease liabilities
45,314
41,308
47,931
Current portion of operating lease liabilities, related party
3,829
3,745
3,501
Other liabilities
50
50
141
Total current liabilities
112,534
100,115
116,510
Long-term liabilities:
Noncurrent portion of operating lease liabilities
115,629
113,305
123,452
Noncurrent portion of operating lease liabilities, related party
11,108
12,099
14,937
Other liabilities
87
99
137
Total long-term liabilities
126,824
125,503
138,526
Total liabilities
239,358
225,618
255,036
Stockholders’ equity:
Common stock (Class A)
23
23
23
Common stock (Class B)
7
7
7
Preferred stock
—
—
—
Additional paid-in capital
177,316
176,755
175,269
Accumulated deficit
(99,596
)
(91,643
)
(96,343
)
Accumulated other comprehensive income
17
—
159
Total stockholders’ equity
77,767
85,142
79,115
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
317,125
$
310,760
$
334,151
Tilly’s, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Thirteen Weeks Ended
May 2,
2026
May 3,
2025
Net sales
$
124,718
$
107,611
Cost of goods sold (includes buying, distribution, and occupancy costs)
87,714
85,394
Rent expense, related party
932
932
Total cost of goods sold (includes buying, distribution, and occupancy costs)
88,646
86,326
Gross profit
36,072
21,285
Selling, general and administrative expenses
44,037
43,841
Rent expense, related party
133
133
Total selling, general and administrative expenses
44,170
43,974
Operating loss
(8,098
)
(22,689
)
Other income, net
282
398
Loss before income taxes
(7,816
)
(22,291
)
Income tax expense (benefit)
137
(139
)
Net loss
$
(7,953
)
$
(22,152
)
Basic loss per share of Class A and Class B common stock
$
(0.26
)
$
(0.74
)
Diluted loss per share of Class A and Class B common stock
$
(0.26
)
$
(0.74
)
Weighted average basic shares outstanding
30,119
30,060
Weighted average diluted shares outstanding
30,119
30,060
Tilly’s, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
Thirteen Weeks Ended
May 2,
2026
May 3,
2025
Cash flows from operating activities
Net loss
$
(7,953
)
$
(22,152
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
2,259
2,828
Stock-based compensation expense
503
440
Impairment of assets
—
1,008
Loss on disposal of assets
4
15
Gain on maturities of marketable securities
—
(180
)
Changes in operating assets and liabilities:
Receivables
897
(740
)
Merchandise inventories
(9,011
)
(6,394
)
Prepaid expenses and other assets
3,719
1,559
Accounts payable
6,650
20,658
Accrued expenses
2,121
176
Accrued compensation and benefits
(701
)
(1,881
)
Operating lease liabilities
(2,050
)
(2,602
)
Deferred revenue
(305
)
(811
)
Other liabilities
(12
)
(43
)
Net cash used in operating activities
(3,879
)
(8,119
)
Cash flows from investing activities
Purchases of marketable securities
(9,859
)
—
Purchases of property and equipment
(1,389
)
(1,522
)
Proceeds from maturities of marketable securities
—
15,816
Net cash (used in) provided by investing activities
(11,248
)
14,294
Cash flows from financing activities
Proceeds from exercise of stock options
58
—
Net cash provided by financing activities
58
—
Change in cash and cash equivalents
(15,069
)
6,175
Cash and cash equivalents, beginning of period
46,313
21,056
Cash and cash equivalents, end of period
$
31,244
$
27,231
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