Tilly’s (NYSE:TLYS) Issues Earnings Results, Beats Expectations By $0.10 EPS

Tilly’s (NYSE:TLYS) issued its earnings results on Wednesday. The specialty retailer reported $0.27 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.17 by $0.10, FiscalAI reports. The business had revenue of $163.51 million during the quarter, compared to the consensus estimate of $157.00 million. Tilly’s had a negative return on equity of 3.98% and a negative net margin of 0.57%. 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 Performance

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

Institutional Trading of Tilly’s

Several institutional investors and hedge funds have recently made changes to their positions in TLYS. Bank of America Corp DE increased its position in Tilly’s by 31.4% during the 4th quarter. Bank of America Corp DE now owns 17,566 shares of the specialty retailer’s stock worth $75,000 after purchasing an additional 4,193 shares in the last quarter. Qube Research & Technologies Ltd acquired a new stake in shares of Tilly’s during the 2nd quarter worth about $27,000. Corient Private Wealth LLC purchased a new stake in shares of Tilly’s during the second quarter worth about $48,000. CIBC Bancorp USA Inc. purchased a new stake in shares of Tilly’s during the third quarter worth about $82,000. Finally, Squarepoint Ops LLC acquired a new position in shares of Tilly’s in the third quarter valued at approximately $97,000. 76.38% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

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

Tilly’s Company Profile

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.