Tilly’s (TLYS) investor relations material

Executive summary

• Achieved third consecutive quarter and ninth consecutive month of comparable net sales growth, with total sales at the top of the outlook range for Q1 fiscal 2026 and a clear path to profitability if sales momentum continues.

• Comparable net sales rose 22.9% year-over-year, with both stores and e-commerce exceeding 20% growth.

• Net loss narrowed to $8 million ($0.26 per share), a significant improvement from over $22 million in the prior year’s Q1, marking the fourth consecutive quarter of year-over-year profit improvement.

• Store count decreased to 220 from 238, with e-commerce sales up 30.9% and representing 22.8% of total net sales.

• Customer engagement increased, with store and online traffic growth, 10% loyalty program growth, and a doubling of TikTok following since launching TikTok Shop.

Financial highlights

• Total net sales were $124.7 million, up 15.9% year-over-year.

• Gross profit rose to $36.1 million (28.9% of net sales), up from $21.3 million (19.8%), driven by improved product margins and lower occupancy costs.

• SG&A expenses were $44.2 million (35.4% of net sales), nearly flat in dollar terms but down as a percentage of sales from 40.9% last year.

• Ended Q1 with $41.1 million in cash and investments, no debt, and $50.7 million in undrawn borrowing capacity.

• Working capital decreased to $13.5 million from $25.1 million at the start of the quarter.

Outlook and guidance

• Q2 2026 net sales expected at $154–$160 million, with comparable net sales growth of 6%–10%.

• Product margins projected to be flat to slightly up versus last year’s record rate.

• SG&A expected at $48–$49 million; net income guidance of $3.8–$6 million ($0.13–$0.20 per diluted share).

• Store count expected to be 221 at Q2 end, a net decrease of 11 stores year-over-year.

• Total liquidity expected to exceed $120 million at Q2 end.