Tilly’s Shares Rocket 42% on Surprise Q4 Profit and Upbeat Outlook
Tilly’s Inc. (NYSE: TLYS) ripped higher after delivering a surprise Q4 profit, stronger‑than‑expected revenue, and upbeat guidance that points to a sustained turnaround in comps.
Q4 earnings beat and margin recovery
- Adjusted EPS came in at $0.10, smashing expectations for a $0.32 loss and marking Tilly’s first profitable Q4 since fiscal 2021.
- Revenue grew 5.3% year over year to $155.1 million, topping the consensus estimate of $146.1 million.
- Comparable store sales increased 10.1%, extending a positive comp streak to seven consecutive months, with February 2026 comps up 20%.
Gross margin expanded to 33.2% from 26.0%, driven by a 470 bps lift in product margins on higher initial markups and reduced markdown activity, supported by leaner, more current inventory. SG&A fell by $3.5 million to $48.9 million, helped by lower store payroll, underscoring improving cost discipline.
Strong FY26 guidance signals ongoing comp momentum
For Q1 FY2026, Tilly’s guided revenue to $119–$125 million, with a midpoint of $122 million versus Street expectations of $106.5 million, implying 16–22% comparable sales growth. The company still expects a net loss of $0.27–$0.34 per share, but that’s a meaningful improvement versus last year’s $0.74 loss as operating leverage kicks in.
Tilly’s ended the quarter with 223 stores (down 17 YoY) and total liquidity of $87.8 million, giving it flexibility to manage the footprint while investing behind the current sales momentum. For investors, the surprise profitability, accelerating comps, and better‑than‑feared guidance collectively support the sharp move higher in Tilly’s and strengthen the early‑stage turnaround narrative around the brand.
