Tilly’s returns to profitability in fourth quarter fiscal 2025

US apparel retailer Tilly’s has reported a return to profitability for the fourth quarter of fiscal 2025, ended January 31, 2026. The company achieved its first profitable fourth quarter and full-year positive comparable net sales since fiscal 2021, driven by a significant acceleration in store performance.

Tilly’s president and chief executive officer, Nate Smith, noted that the business has maintained positive momentum since August. According to Smith, the retailer has produced seven consecutive months of comparable net sales growth, with February 2026 showing a 20 percent increase.

Fourth quarter financial performance

Total net sales for the quarter reached 155.1 million dollars, representing an increase of 5.3 percent compared to the previous year. Total comparable net sales, which include both physical stores and e-commerce, rose by 10.1 percent.

Net sales from physical stores contributed 112.2 million dollars, an increase of 3.6 percent. This growth occurred despite a reduced store fleet, as the company ended the period with 223 locations, 17 fewer than the 240 stores operated a year prior. Comparable net sales for these locations grew by 10.3 percent.

E-commerce sales for the period were 43 million dollars. Comparable net sales for the digital channel increased by 9.8 percent, with e-commerce now representing 27.7 percent of total net sales compared to 26.5 percent in the prior year.

Margin improvement and operational efficiency

Gross profit rose to 51.5 million dollars, or 33.2 percent of net sales, up from 26 percent last year. Operating income for the quarter reached 2.6 million dollars, a significant recovery from the operating loss of 14.1 million dollars reported in the same period last year. Net income improved by 16.6 million dollars to reach 2.9 million dollars.

Full year results and executive promotion

For the full fiscal 2025, total net sales were 553.6 million dollars, a decrease of 2.8 percent. However, total comparable net sales saw a slight increase of 0.3 percent. The annual net loss narrowed significantly to 17.5 million dollars, compared to a net loss of 46.2 million dollars in fiscal 2024.

The company also announced the promotion of Michael J. Cingolani to the position of chief merchandising officer on March 10, 2026. Cingolani previously served as senior vice president and general merchandising manager since November 2024.

Looking ahead to the first quarter of fiscal 2026, Tilly’s expects net sales between 119 million and 125 million dollars. This forecast suggests an estimated comparable net sales increase of 16 percent to 22 percent relative to the first quarter of the previous year.