Tilly’s (NYSE:TLYS – Get Free Report) issued its quarterly earnings results on Wednesday. The specialty retailer reported $0.27 EPS for the quarter, beating the consensus estimate of $0.17 by $0.10, FiscalAI reports. The firm had revenue of $163.51 million during the quarter, compared to analysts’ expectations of $157.00 million. Tilly’s had a return on equity of 2.37% and a net margin of 0.34%. Tilly’s updated its Q3 2026 guidance to 0.070-0.120 EPS.
Here are the key takeaways from Tilly’s’ conference call:
- Strong sales momentum continued: Fiscal Q2 comparable sales rose 12.1%, marking the third consecutive quarter of double-digit growth, while August comps accelerated to 14.6% despite tougher comparisons.
- Profitability and margins improved materially, with gross margin expanding 300 basis points to 35.5% and net income increasing to $8.4 million, or $0.27 per diluted share, from $3.2 million, or $0.10, a year ago.
- Tilly’s maintained tight inventory discipline, with inventory down 1.3% year over year while sales increased, and ended the quarter debt-free with $62.2 million in cash and investments.
- Management projected Q3 comparable sales growth of 10%–14% and net income of $2.2 million–$3.7 million, which would represent a sixth consecutive quarter of year-over-year profit improvement.
- The company plans to reduce its store base to 218 locations by fiscal year-end, while tentatively targeting five to eight new stores in fiscal 2027; management also noted that lease decisions and potential closures remain ongoing.
Tilly’s Stock Down 0.7%
Shares of TLYS opened at $4.37 on Monday. The business’s fifty day moving average is $3.99 and its 200 day moving average is $3.88. Tilly’s has a 12-month low of $1.14 and a 12-month high of $6.25. The stock has a market cap of $133.20 million, a P/E ratio of 72.83 and a beta of 0.13.
Hedge Funds Weigh In On Tilly’s
Wall Street Analysts Forecast Growth
A number of research firms have commented on TLYS. Wall Street Zen upgraded Tilly’s from a “hold” rating to a “buy” rating in a research note on Saturday. Roth Capital reiterated a “neutral” rating and set a $5.50 target price on shares of Tilly’s in a research report on Monday, June 8th. Zacks Research lowered Tilly’s from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 4th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Tilly’s in a research report on Monday, June 15th. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Reduce” and an average price target of $5.50.
View Our Latest Report on TLYS
About Tilly’s
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.
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