TLDR
- Tilly’s delivered Q4 EPS of $0.10, significantly exceeding Wall Street’s -$0.32 projection
- Net sales reached $155.1 million, marking a 5.3% year-over-year increase and surpassing analyst predictions of approximately $146–$148 million
- Comparable sales climbed 10.1%, extending the positive momentum to seven consecutive months
- Gross profit margin improved dramatically to 33.2% versus 26.0% in the prior-year quarter
- First quarter 2026 revenue forecast of $119M–$125M significantly exceeds the $106.5M Street estimate
Shares of Tilly’s rocketed higher Thursday following the youth apparel retailer’s announcement of its first profitable fourth quarter since the 2021 fiscal year, handily surpassing analyst projections across key metrics.
The retailer announced adjusted earnings per share of $0.10 for the fourth quarter concluded on January 31, 2026. This represented a stunning reversal from the Street’s anticipated loss of $0.32 per share and a substantial uptick from the -$0.45 loss recorded in the year-ago period.
Net sales totaled $155.1 million, reflecting 5.3% growth versus the previous year. The analyst community had projected figures in the $146–$148 million range.
Comparable store sales increased 10.1% during the quarter. Brick-and-mortar locations delivered a 10.3% comparable gain, with digital channels contributing a 9.8% increase.
This marked the seventh month in a row of positive comparable sales performance. The momentum carried into February 2026, which saw comparable sales surge 20%.
CEO Nate Smith highlighted the positive trajectory. “Our positive comparable store net sales momentum accelerated in the fourth quarter of fiscal 2025 and produced our first profitable fourth quarter and full-year positive comp sales since fiscal 2021,” he stated.
Gross profit margin registered at 33.2%, a substantial leap from 26.0% in the comparable quarter last year. The primary catalyst was a 470 basis point enhancement in product margins — attributed to improved initial markups combined with reduced promotional activity.
Operational efficiency also improved. The company maintained tighter inventory controls with fresher merchandise, while SG&A expenses decreased by $3.5 million to $48.9 million, primarily reflecting reduced store labor expenses.
Guidance Clears the Bar
The first quarter 2026 forecast provided additional momentum to the share price surge. Tilly’s projected revenue between $119 million and $125 million, with a $122 million midpoint — substantially above the $106.5 million analyst consensus figure.
This implies comparable sales growth of 16% to 22% for the period. Product margin enhancement is anticipated in the 310 to 330 basis point range.
SG&A expenses are forecast at $44 million to $45 million. The company expects a net loss between $8 million and $10.1 million, translating to -$0.27 to -$0.34 per share — representing marked improvement versus Q1 2025’s loss of $0.74 per share.
The retailer plans to maintain 220 stores throughout the quarter, down from 238 in Q1 2025. The company concluded Q4 with 223 total locations, 17 fewer than the previous year.
Trading Volume Tells the Story
TLYS shares surged more than 65% during pre-market hours Thursday before stabilizing in the 48–56% gain range throughout regular trading. This followed a 3.16% advance the previous session.
Volume exceeded 14 million shares on Thursday. Compared to the three-month average daily volume of merely 40,000 shares, this represented a 350-fold increase.
Prior to Thursday’s session, the stock had declined 18% year-to-date and approximately 38% over the trailing 12-month period.
Total available liquidity at quarter’s end measured $87.8 million.
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