Total net sales for the quarter ended May 2, 2026, increased 15.9 per cent YoY to $124.7 million. Physical store sales rose 12.1 per cent to $96.3 million, while e-commerce sales surged 30.9 per cent to $28.4 million, Tilly’s said in a press release.
Tilly’s, Inc has reported a strong Q1 FY26 results, with total comparable sales rising 22.9 per cent and net sales increasing 15.9 per cent to $124.7 million.
E-commerce sales surged 30.9 per cent, while gross margin improved significantly due to stronger full-price selling and lower occupancy costs.
The company projected continued sales growth and a return towards profitability in Q2 FY26.
“The turnaround momentum which began in fiscal 2025 continued through the first quarter of fiscal 2026,” said Nate Smith, president and CEO of Tilly’s. He added that returning to profitability remains the company’s foremost goal for fiscal 2026.
Comparable sales from stores increased 20.8 per cent during the quarter. E-commerce accounted for 22.8 per cent of total sales, compared to 20.2 per cent in the same period last year.
Gross margin strengthens on full-price selling
The gross profit improved sharply to $36.1 million, or 28.9 per cent of net sales, compared to $21.3 million, or 19.8 per cent of net sales, in the prior-year quarter. Product margins improved by 400 basis points (bps), supported by stronger full-price selling and healthier inventory positioning.
Buying, distribution and occupancy costs collectively improved by 520 bps, largely due to lower occupancy expenses resulting from a reduced store base. Tilly’s ended the quarter with 220 stores, down from 238 stores a year earlier.
Selling, general and administrative (SG&A) expenses stood at $44.2 million, compared to $44 million last year. As a percentage of net sales, SG&A improved to 35.4 per cent from 40.9 per cent.
The operating loss narrowed significantly to $8.1 million from $22.7 million a year earlier. Net loss also improved to $8 million, or $0.26 per share, compared to a net loss of $22.2 million, or $0.74 per share, in the corresponding quarter last year.
For May 2026, total comparable net sales increased 8.3 per cent, marking the company’s tenth consecutive month of comparable sales growth.
Tilly’s forecasts return to quarterly profitability
For Q2 FY26 ending August 1, 2026, Tilly’s expects net sales between $154 million and $160 million, representing comparable sales growth of 6-10 per cent YoY. The company also forecasts net income in the range of $3.8 million to $6 million, or diluted earnings per share between $0.13 and $0.20.
Tilly’s expects to operate 221 stores by the end of the second quarter, compared to 232 stores at the end of the same period last year.
Fibre2Fashion News Desk (SG)
