Tilly's, the 44-year-old mall retailer, reported second quarter fiscal 2026 net sales of $163.5 million, up 8.1% from a year earlier, and projected its first profitable full year since 2022 after closing 40 stores over roughly two years. Comparable net sales rose 12.1% for the quarter, with physical store net sales of $129.0 million, up 5.1%, and e-commerce net sales of $34.5 million, up 20.9%. Gross profit was $58.1 million, or 35.5% of net sales, compared with $49.1 million, or 32.5%, last year, while net income reached $8.4 million, or $0.27 per diluted share, versus $3.2 million, or $0.10 per diluted share, in 2025. The Irvine, California-based chain ended the quarter with 220 total stores, down 12 stores or 5.2% from 232 a year earlier, and expects to finish the fiscal year with 218 stores before targeting 5 to 8 new openings in fiscal 2027. CEO Nate Smith said the company is encouraged by its progress but "not finished," and management plans to launch an AI-driven smart inventory allocation tool and roll out RFID technology in stores starting in early 2027.
Tillys IncTilly's returned to profit with Q2 net income of $8.4M and projected its first profitable full year since 2022 after closing 40 stores.
