Tilly’s stock soars 48%, reports unexpected profit in Q4 and issues strong guidance

2026-03-11 21:26:37

Irvine, California - Tilly’s, Inc. (NYSE:TLYS) stock surged 48% after the company announced its Q4 earnings report, marking its first Q4 profit since 2021 fiscal year.

For the quarter ending January 31, 2026, the specialty retailer reported adjusted earnings per share of $0.10, well above analysts’ expected loss of $0.32 per share.

Revenue reached $155.1 million, up 5.3% year-over-year, surpassing the market consensus of $146.1 million. Comparable store sales soared 10.1%, marking the seventh consecutive month of positive comparable sales growth.

President and CEO Nate Smith stated, “Our comparable store net sales momentum accelerated in Q4 2025, achieving our first Q4 profit and full-year positive comparable sales since 2021. Since turning positive in August, we have maintained seven months of consecutive comparable net sales growth, including a 20% increase in February 2026.”

Gross margin expanded from 26.0% last year to 33.2%, driven by a 470 basis point increase in product profit margins due to higher initial markups and reduced markdowns. The company operates with fewer, newer inventory levels. Selling, general, and administrative expenses decreased by $3.5 million to $48.9 million, mainly due to lower store wage costs.

For Q1 2026, Tilly’s issued guidance well above expectations. The company projects revenue of $119 million to $125 million, with a midpoint of $122 million, significantly exceeding analysts’ consensus of $106.5 million. This implies an estimated comparable sales growth of 16% to 22%. The company expects a net loss per share of $0.27 to $0.34, compared to analysts’ consensus of a $0.41 loss per share, an improvement from last year’s Q1 loss of $0.74 per share.

At the end of the quarter, the company operated 223 stores, down 17 stores from the previous year, with total available liquidity of $87.8 million.

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