Tilly’s, Inc. (NYSE: TLYS) shares surged more than 50% intra-day Thursday after the specialty apparel retailer reported a strong fourth-quarter earnings beat, marking its first profitable fourth quarter since fiscal 2021.
The company posted adjusted earnings of $0.10 per share for the quarter ended January 31, 2026, significantly outperforming analyst expectations for a loss of $0.32 per share.
Revenue reached $155.1 million, increasing 5.3% year over year and exceeding the consensus estimate of $146.1 million. Comparable store sales climbed 10.1%, representing the seventh straight month of positive comparable sales growth.
Gross profit margin expanded to 33.2%, up from 26.0% in the prior-year period. The improvement reflected a 470-basis-point increase in product margins driven by higher initial markups and reduced markdown activity. The company also operated with leaner and more current inventory levels.
Selling, general and administrative expenses declined by $3.5 million to $48.9 million, primarily due to lower store payroll costs.
For the first quarter of fiscal 2026, Tilly’s issued guidance that exceeded expectations. The company forecast revenue between $119 million and $125 million, with the midpoint of $122 million well above the analyst consensus estimate of $106.5 million. The outlook implies comparable sales growth between 16% and 22%.
Tilly’s expects a net loss of $0.27 to $0.34 per share in the quarter, compared with a consensus estimate and representing an improvement from the $0.74 loss reported in the same period last year.
