Tilly’s (NYSE:TLYS) Releases Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Posted by on Sep 3rd, 2026

Tilly’s (NYSE:TLYS – Get Free Report) issued its quarterly earnings results on Wednesday. The specialty retailer reported $0.27 earnings per share (EPS) for the quarter, topping the consensus estimate 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 negative net margin of 0.57% and a negative return on equity of 3.98%. 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

Shares of NYSE:TLYS opened at $3.81 on Thursday. Tilly’s has a 1 year low of $1.14 and a 1 year high of $5.90. The company has a market cap of $116.04 million, a P/E ratio of -34.61 and a beta of 0.13. The stock’s fifty day moving average price is $3.99 and its 200-day moving average price is $3.84.

Hedge Funds Weigh In On Tilly’s

A number of hedge funds have recently bought and sold shares of the business. Bank of America Corp DE grew its stake in shares of Tilly’s by 31.4% in the fourth quarter. Bank of America Corp DE now owns 17,566 shares of the specialty retailer’s stock worth $75,000 after acquiring an additional 4,193 shares during the period. State Street Corp raised its holdings in shares of Tilly’s by 10.5% during the fourth quarter. State Street Corp now owns 107,108 shares of the specialty retailer’s stock valued at $213,000 after purchasing an additional 10,200 shares during the last quarter. Bridgeway Capital Management LLC lifted its position in Tilly’s by 27.9% during the fourth quarter. Bridgeway Capital Management LLC now owns 65,931 shares of the specialty retailer’s stock valued at $131,000 after purchasing an additional 14,400 shares during the period. Qube Research & Technologies Ltd bought a new position in Tilly’s during the second quarter valued at approximately $27,000. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in Tilly’s by 133.1% in the third quarter. Arrowstreet Capital Limited Partnership now owns 60,645 shares of the specialty retailer’s stock worth $125,000 after purchasing an additional 34,627 shares during the last quarter. Hedge funds and other institutional investors own 76.38% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on TLYS. Roth Capital reissued a “neutral” rating and issued a $5.50 price target on shares of Tilly’s in a research report on Monday, June 8th. Zacks Research cut Tilly’s from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 4th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Tilly’s in a report on Monday, June 15th. Two analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Tilly’s presently has an average rating of “Reduce” and an average target price of $5.50.

Get Our Latest Research Report on TLYS

Tilly’s News Roundup

Here are the key news stories impacting Tilly’s this week:

  • Positive Sentiment: Q2 earnings and revenue beat estimates: Tilly’s reported adjusted earnings of $0.27 per share, exceeding the $0.17 analyst consensus, while revenue rose to $163.5 million versus expectations of $157.0 million. Earnings also improved from $0.10 per share in the year-earlier period. Tilly’s Q2 Earnings and Revenues Surpass Estimates
  • Positive Sentiment: Optimistic guidance: Management forecast third-quarter EPS of $0.07-$0.12, well above the consensus estimate for a $0.07 loss. Revenue guidance of $150 million-$155 million also topped the $140.8 million analyst forecast. The company additionally guided for a full-year profit, improving investor expectations for its earnings trajectory. Tilly’s Guides for Full-year Profit after Strong Q2
  • Positive Sentiment: Market reaction reflects the upside surprise: Reports characterized the quarterly performance as a strong beat, with shares rising sharply in after-hours trading. The earnings call and management commentary provide additional context on the outlook and operating performance. Tilly’s Fiscal Q2 Earnings, Sales Rise; Shares Rise After Hours
  • Neutral Sentiment: Tilly’s remains financially fragile despite the improved quarter, with a negative net margin and negative return on equity. Investors will be watching whether the stronger sales and profitability can persist through the important retail season.

About Tilly’s

(Get Free Report)

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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Earnings History for Tilly's (NYSE:TLYS)

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