Tilly's shares surge 22.45% intraday after beating Q3 sales estimates, narrowing loss to $0.05 vs. $0.30 estimate, and raising Q4 guidance.

Tilly's (NYSE:TLYS) surged 22.45% intraday following its Q3 fiscal 2025 earnings report, which revealed a narrower-than-expected GAAP loss of $0.05 per share (beating estimates by 83.3%) and revenue of $139.6 million (2% above estimates despite a 2.7% year-on-year decline). The stock’s rally aligned with the company’s first quarterly comparable net sales growth (2.0%) since late 2021, driven by improved product margins, reduced SG&A expenses, and optimism around Q4 guidance ($148.5 million midpoint, 1.6% above estimates). CEO Nate Smith highlighted operational progress, including a 390-basis-point gross margin improvement and positive momentum into the holiday season. Pre-earnings speculation also fueled the move, as investors anticipated a turnaround after years of declining sales and store closures. The report signaled confidence in management’s execution and potential for sustained recovery.