Tilly's shares surge 15.52% after-hours on Q3 profitability improvement, narrower net loss, and strong Q4 guidance.

Tilly's surged 15.52% in after-hours trading following the release of its Q3 2025 earnings, which highlighted stronger profitability despite a 2.7% sales decline. The company reported a narrowed net loss of $1.4 million, 2% comparable sales growth (the first increase since Q4 2021), and a 390-basis-point improvement in gross margins to 30.5%. Strong early Q4 trends, including 6.7% comp sales growth through December 2, 2025, and guidance for 4–8% comp growth in Q4, further bolstered optimism. Liquidity of $100.7 million and reduced inventory levels underscored operational progress. While a separate analysis raised concerns about cash burn relative to market cap, the earnings report’s positive metrics—margin expansion, reduced losses, and strategic store closures—directly aligned with the stock’s sharp after-hours rise.