Tilly's records narrowing net loss and Q1 sales growth of 15.9 percent

US apparel retailer Tilly's, Inc. has announced its financial results for the first quarter of fiscal year 2026, ended May 2, 2026, revealing sustained turnaround momentum and a third consecutive quarter of comparable net sales growth.

Total net sales for the period reached 124.70 million dollars, representing a 15.9 percent increase compared to the first quarter of fiscal year 2025. Total comparable net sales, which include both physical brick and mortar stores and e-commerce, grew by 22.9 percent.

Nate Smith, president and chief executive officer at the US-based brand, stated that the turnaround momentum which began in fiscal year 2025 extended their streak of comparable net sales growth to nine consecutive months. Smith added that returning to profitability is the foremost goal for fiscal year 2026, and the strong start provides a clear path to achieve it.

Channel performance and store network contraction

Net sales from physical stores rose by 12.1 percent to 96.30 million dollars. Comparable net sales from physical locations grew by 20.8 percent relative to the comparable 13-week period ended May 3, 2025.

Physical retail channels represented 77.2 percent of total net sales, down from 79.8 percent in the prior year period. The retailer ended the quarter with 220 total stores, marking a net decrease of 18 stores.

Net sales from e-commerce grew by 30.9 percent to 28.40 million dollars. Online sales increased their share of the business, representing 22.8 percent of total net sales compared to 20.2 percent in the first quarter of the previous fiscal year.

Second quarter outlook

For the second quarter of fiscal year 2026, ending August 1, 2026, the company estimates net sales to be between 154 million dollars and 160 million dollars, representing an estimated comparable net sales increase of 6 percent to 10 percent. Product margins are projected to be flat to up slightly compared to the record rate of the second quarter last year.

Net income is expected to range between 3.80 million dollars and 6 million dollars, translating to net income per diluted share between 0.13 dollars and 0.20 dollars, compared to 0.10 dollars in the second quarter of fiscal year 2025. The company anticipates operating 221 stores at the close of the second quarter.