Tilly's records four consecutive quarters of comparable net sales growth

US retailer Tilly’s, Inc. (Tilly’s) has announced its financial results for the second quarter of fiscal 2026 ended August 1, 2026, recording four consecutive quarters of year-over-year comparable net sales growth.

The company reported total net sales of 163.5 million dollars for the period, an increase of 8.1 percent compared to 151.2 million dollars in the second quarter of fiscal 2025. Total comparable net sales, including physical stores and e-commerce (e-com), rose by 12.1 percent.

Net sales from physical stores totaled 129.0 million dollars, up 5.1 percent from last year, despite ending the period with 220 total stores, a reduction of 12 locations compared to the 232 stores recorded in the second quarter of fiscal 2025. Comparable net sales for physical locations grew 10.3 percent year-over-year (YoY). E-com net sales increased 20.9 percent to 34.5 million dollars, representing 21.1 percent of total net sales compared to 18.9 percent in the prior-year period.

Gross profit and operational performance

Gross profit reached 58.1 million dollars, or 35.5 percent of net sales, an improvement of nine million dollars compared to 49.1 million dollars, or 32.5 percent of net sales, in the previous year. Product margins improved by 140 basis points, marking the seventh consecutive quarter of YoY margin gains.

Operating income for the quarter improved to 8.2 million dollars, or 5 percent of net sales, compared to 2.7 million dollars, or 1.8 percent of net sales, last year. Net income reached 8.4 million dollars, or 0.27 dollars per diluted share, up from 3.2 million dollars, or 0.10 dollars per diluted share, in the second quarter of fiscal 2025.

In a statement, Nate Smith, president and chief executive officer of Tilly's, said: “We maintained our positive operating momentum throughout the second quarter and the important back-to-school season. We have now produced four consecutive quarters of year-over-year comparable net sales growth and, inclusive of fiscal August to start the third quarter, thirteen consecutive months of year-over-year comparable net sales growth. We also delivered our fifth consecutive quarter of year-over-year profit improvement in the second quarter.”

Smith added: “We are now profitable on a trailing four quarters basis and on a year-to-date basis for fiscal 2026. Based on our year-to-date performance and assuming our positive momentum continues, we believe we are well positioned to produce our first profitable fiscal year since 2022.”

Third quarter outlook

For the third quarter of fiscal 2026 ending October 31, 2026, Tilly’s expects net sales between approximately 150 million dollars and 155 million dollars, representing an estimated LFL net sales increase of 10 percent to 14 percent.

Net income is expected between 2.2 million dollars and 3.7 million dollars, or 0.07 dollars to 0.12 dollars per diluted share. The company anticipates maintaining 220 open stores at the end of the period.