Tillys 2026 Q2 Earnings Strong Turnaround as Net Income Surges 4687%

Tilly's reported its fiscal 2026 Q2 earnings on Sep 04th, 2025. The company posted a net income of $3.17 million compared to a net loss of $69,000 in the same period last year, significantly exceeding expectations. Tilly's maintained stable EPS at $0.11 and guided for a net loss in Q3, with revenue expected to decline slightly.

Revenue
Tilly's total revenue for the second quarter of 2026 declined by 7.1% year-over-year to $151.26 million, compared to $162.87 million in the prior-year period. The drop in revenue reflects a challenging retail environment, though the company remains focused on long-term profitability.

Earnings/Net Income
Tilly's demonstrated a strong turnaround in profitability, posting a net income of $3.17 million for 2026 Q2—up from a net loss of $69,000 in the same period last year. This 4687% increase highlights significant cost discipline and operational improvements, despite the decline in revenue. The stable EPS of $0.11 further underscores the company's ability to maintain profitability in a challenging market.

Price Action
Tilly's stock price declined by 4.11% during the latest trading day but saw a 12.30% increase over the most recent full trading week, and has surged 25.00% month-to-date. The positive momentum suggests investor confidence in the company's long-term strategy.

Post-Earnings Price Action Review
Following the earnings report, Tilly's management expressed optimism about the company’s direction and leadership changes. CEO Nate Smith emphasized his commitment to leveraging his apparel industry experience to drive continued progress, while Executive Chairman Hezy Shaked highlighted the team’s hard work and the company's ongoing stabilization efforts. Both leaders remain focused on building long-term value and operational efficiency.

CEO Commentary
Nate Smith, President, CEO & Director, highlighted his recent appointment and early focus on leveraging his apparel industry experience to build on Tilly's progress. He expressed excitement about the company's future and emphasized a commitment to driving improvements over time. Smith noted that while he would have more to share in the next earnings call, his initial priorities include getting familiar with the team and processes. Hezy Shaked, Co-Founder & Executive Chairman, expressed confidence in the team’s progress and optimism about the leadership transition. Shaked emphasized the team’s hard work and the company's stabilization efforts, describing a cautiously optimistic outlook as the new leadership begins to take shape.

Guidance
Tilly's expects third quarter 2025 net sales of approximately $134 million to $140 million, with comparable net sales declining by 2% or increasing by 2%. The guidance includes SG&A expenses of around $47 million, a near-zero effective tax rate, and a net loss of $10.5 million to $6.9 million, or a net loss per share of $0.35 to $0.23. The company projects closing 4 stores and opening 2, ending the quarter with 230 stores, and maintaining a debt-free balance sheet with liquidity of $83 million to $86 million.

Additional News
Recent developments in the Nigerian market have seen growing political and social tensions. A report from Punch Newspapers on September 3, 2025, highlighted the Niger lynching incident, where citizens called for justice for a man falsely accused of child abduction. Additionally, Lagos deputy speaker distributed scholarships and palliatives to constituents, emphasizing community development. In the political sphere, Kaduna State Police Command summoned former governor Nasir El-Rufai and six ADC leaders over criminal conspiracy allegations, indicating heightened scrutiny in the political landscape.