Tilly’s Stock Soars on Surprise Q4 Profit, Strong Q1 Sales Outlook

Overview

• Tilly’s posted adjusted Q4 EPS of $0.10 versus an expected loss of $0.32, marking its first profitable fourth quarter since fiscal 2021.
• Revenue rose 5.3% to $155.1 million as comparable sales increased 10.1% (stores up 10.3% and e-commerce up 9.8%), with February comps advancing about 20%.
• Gross margin expanded to 33.2% from 26.0% a year earlier, driven by a 470-basis-point improvement in product margins from higher initial markups and fewer markdowns.
• Q1 2026 guidance calls for revenue of $119 million to $125 million (midpoint $122 million), implying 16%–22% comparable sales growth, alongside an expected net loss of $8.0 million to $10.1 million and SG&A of $44 million to $45 million.
• The company ended Q4 with 223 stores and plans about 220 in Q1 versus 238 a year earlier, reported $87.8 million in liquidity, and saw shares jump roughly 48%–56% on volume exceeding 14 million versus a ~40,000 average.