Tilly's Reports Strong Q2 Earnings with Sales Growth, Improved Margins
Tilly's Inc (NYSE:TLYS) reported strong fiscal second-quarter results for 2026, marked by double-digit comparable sales growth and improved profitability. Net sales rose to $163.5 million, up 8.1% year over year, while comparable net sales increased 12.1%, the third consecutive quarter of such gains across both stores and e-commerce channels. The company's gross margin expanded by 300 basis points to 35.5%, driven by improved merchandise margins and lower inventory levels. Net income surged from $3.2 million in the prior year to $8.4 million, or $0.27 per diluted share. Tilly’s also reported a stronger balance sheet with cash and investments reaching $62.2 million and no borrowings. Looking ahead, management expects continued momentum into Q3, forecasting comparable sales growth of 10%–14%. The company is leveraging digital platforms like TikTok to expand its customer reach and has seen significant engagement from loyalty program members.
Tickers: $TLYS
Topics: comparable_sales_growth financial_results profitability