Tilly’s (NYSE:TLYS – Get Free Report) announced its quarterly earnings data on Wednesday. The specialty retailer reported $0.27 earnings per share for the quarter, beating analysts’ consensus estimates of $0.17 by $0.10, FiscalAI reports. The company had revenue of $163.51 million during the quarter, compared to analyst estimates of $157.00 million. Tilly’s had a net margin of 0.34% and a return on equity of 2.41%. 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 Price Performance
NYSE TLYS opened at $4.37 on Friday. Tilly’s has a 1 year low of $1.14 and a 1 year high of $6.25. The company has a market capitalization of $133.20 million, a PE ratio of 72.83 and a beta of 0.13. The company has a fifty day moving average of $3.99 and a two-hundred day moving average of $3.86.
Hedge Funds Weigh In On Tilly’s
Analyst Upgrades and Downgrades
A number of brokerages have recently weighed in on TLYS. Wall Street Zen upgraded Tilly’s from a “hold” rating to a “buy” rating in a research note on Saturday. Roth Capital reissued a “neutral” rating and issued a $5.50 price objective on shares of Tilly’s in a report on Monday, June 8th. Weiss Ratings reissued a “sell (d-)” rating on shares of Tilly’s in a report on Monday, June 15th. Finally, Zacks Research downgraded Tilly’s from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 4th. Two investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Reduce” and an average price target of $5.50.
View Our Latest Stock 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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