Tilly's, Inc. reported a net loss of $17.5 million for the fiscal year ending January 31, 2026, a significant improvement from the $46.2 million loss recorded in the previous fiscal year. The company's total net sales decreased by 2.8% to $553.6 million, down from $569.5 million in fiscal 2024. This decline was attributed to a reduction in store count, with 223 stores operating at the end of fiscal 2025, compared to 240 the previous year. Despite the overall decrease in sales, comparable store sales, which include both physical and e-commerce sales, showed a slight increase of 0.3%, indicating a positive trend in customer engagement.
The company's gross profit improved to $164.5 million, representing 29.7% of net sales, up from 26.3% in the prior year. This increase was primarily driven by higher initial markups and lower markdowns due to more current inventory management. Selling, general, and administrative expenses decreased to $183.8 million, or 33.2% of net sales, down from 35.0% the previous year, reflecting cost-cutting measures and improved operational efficiencies. The operating loss narrowed to $19.3 million, a notable improvement from the $49.8 million loss in fiscal 2024.
Tilly's continues to focus on enhancing its e-commerce capabilities, which accounted for 22.1% of total net sales, generating $122.5 million in revenue. The company has invested in technology upgrades to improve customer experience and streamline operations, including a new point-of-sale system and enhancements to its website and mobile app. The firm also plans to open four to six new stores in fiscal 2026, targeting existing markets with growth potential while maintaining a disciplined approach to store openings.
As of January 31, 2026, Tilly's had approximately 1,314 full-time and 3,809 part-time employees, with a fluctuating total headcount that varies seasonally. The company has implemented a customer loyalty program, Tillys Rewards, to foster customer engagement and retention. The program has been successful in providing insights into customer preferences and shopping behaviors, which the company aims to leverage for future marketing strategies.
Looking ahead, Tilly's management expressed cautious optimism, acknowledging the ongoing challenges posed by inflation and changing consumer spending patterns. The company aims to improve its financial performance by focusing on comparable store sales growth, enhancing operational efficiencies, and expanding its e-commerce presence. However, management also noted that external factors, including economic conditions and competition, could impact future results.
About TILLY'S, INC.
Tillys is a specialty retailer of casual apparel, footwear, accessories, and hardgoods targeting young men, women, boys, and girls. It offers a broad assortment of global, emerging, and proprietary brands through 240 stores across the U.S. and online. The company emphasizes an active, outdoor, and social lifestyle, providing an engaging shopping experience with a focus on trend responsiveness, omni-channel integration, and community connection.
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