Tilly’s Reports Improved Earnings Amid Sales Growth

Tilly’s ( (TLYS) ) has released its Q3 earnings. Here is a breakdown of the information Tilly’s presented to its investors.

Tilly’s, Inc. is a specialty retailer offering casual apparel, footwear, and accessories for young men, women, boys, and girls, with a focus on active, outdoor, and social lifestyles, operating both physical stores and an online platform.

In its fiscal 2025 third-quarter earnings report, Tilly’s revealed a notable improvement in its financial performance, surpassing its earnings outlook. The company reported its first quarter of comparable net sales growth since fiscal 2021, indicating a positive shift in momentum that has continued into the early stages of the fourth quarter.

Key financial highlights include total net sales of $139.6 million, a slight decrease of 2.7% from the previous year, but with a 2.0% increase in comparable net sales. Physical store sales saw a 5.3% rise in comparable sales despite a reduction in store count, while e-commerce sales decreased by 9.0%. Gross profit improved significantly to $42.6 million, driven by better product margins and reduced occupancy costs. The company also reported a reduced net loss of $1.4 million, a substantial improvement from the $12.9 million loss in the prior year.

For the year-to-date period, Tilly’s experienced a 5.6% decline in total net sales, with a 3.0% decrease in comparable net sales. However, the company managed to improve its operating loss and net loss figures compared to the previous year, showcasing effective cost management and strategic adjustments.

Looking ahead, Tilly’s management remains optimistic about maintaining its sales momentum into the fourth quarter and fiscal 2026. The company anticipates continued improvement in product margins and aims to manage expenses effectively, despite the challenges posed by a reduced store count and ongoing economic uncertainties.