Tilly’s stock surged on Thursday after the retailer posted its first profitable fourth quarter since fiscal 2021, blowing past Wall Street expectations on both earnings and revenue.
Tilly's, Inc. (TLYS) $TLYS
**RATING: BUY**
**EXECUTIVE SUMMARY**
This report is prompted by Tilly's, Inc. fourth quarter and full year 2025 earnings call, where the company reported a turnaround in sales momentum and profitability. The management's optimistic outlook for… pic.twitter.com/AdBNxQQnB3— SellSyde.AI (@MarketsHistory) March 12, 2026
The company reported adjusted EPS of $0.10 for Q4, ending January 31, 2026. That was a dramatic turnaround from analyst forecasts of a loss of $0.32 per share, and a big improvement from the -$0.45 reported in Q4 2024.
Revenue came in at $155.1 million, up 5.3% year-over-year. Analysts had been expecting around $146–$148 million.
Comparable store sales jumped 10.1% for the quarter. Physical stores drove a 10.3% comp gain, while e-commerce posted a 9.8% rise.
That made it seven consecutive months of positive comparable sales growth. February 2026 continued the trend, with comp sales climbing 20%.
CEO Nate Smith called out the momentum directly. “Our positive comparable store net sales momentum accelerated in the fourth quarter of fiscal 2025 and produced our first profitable fourth quarter and full-year positive comp sales since fiscal 2021,” he said.
Gross profit margin came in at 33.2%, up from 26.0% in the year-ago period. A 470 basis point improvement in product margins — driven by higher initial markups and fewer markdowns — was the main driver.
The company also ran leaner. Inventory levels were reduced and more current, and SG&A expenses fell $3.5 million to $48.9 million, mostly due to lower store payroll costs.
The Q1 2026 outlook added more fuel to the rally. Tilly’s guided for revenue of $119 million to $125 million, with a midpoint of $122 million — well above the $106.5 million analyst consensus.
That implies a comparable sales increase of 16% to 22% for the quarter. Product margin improvement is expected in the range of 310 to 330 basis points.
SG&A is projected at $44 million to $45 million. Net loss is expected between $8 million and $10.1 million, or -$0.27 to -$0.34 per share — a clear improvement from Q1 2025’s loss of $0.74 per share.
The company plans to operate 220 stores during the quarter, down from 238 in Q1 2025. It ended Q4 with 223 total stores, 17 fewer than a year ago.
TLYS stock was up more than 65% in pre-market trading Thursday before settling into a 48–56% gain during the session. That followed a 3.16% rise the day before.
More than 14 million shares changed hands on Thursday. That compares to a three-month average daily volume of just 40,000 — a 350x spike.
The stock had been down 18% year-to-date and around 38% over the prior 12 months before Thursday’s session.
Total available liquidity at quarter end stood at $87.8 million.
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