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Aug 02, 2025
Tillys Q2 2025 Earnings Report
Tilly's returned to profitability in Q2 2025, driven by improved product margins and disciplined cost control.
Key Takeaways
Tilly's posted a net income of $3.2M in Q2 FY25, reversing last year's loss. The company saw margin expansion despite a 7.1% drop in revenue and remains focused on stabilizing operations and inventory efficiency.
Revenue declined 7.1% YoY to $151.3M, driven by lower sales in both physical stores and e-commerce.
Gross margin expanded to 32.5%, benefiting from higher markups and fewer markdowns.
SG&A expenses were reduced by $4.4M, supporting a return to profitability.
Net income was $3.2M compared to a net loss of $0.1M last year.
Revenue by Segment
Forward Guidance
Tilly's expects Q3 FY25 sales to range between $134M–$140M, with flat to slightly positive comparable net sales and a net loss forecasted between $7M and $10.5M.
Positive Outlook
- Comparable sales improved by 0.9% in fiscal August.
- Inventory management continued to improve.
- No debt on the balance sheet.
- Liquidity expected to remain strong at $83M–$86M.
- E-commerce sales held relatively steady as a percent of total revenue.
Challenges Ahead
- Q3 is expected to return to a net loss of up to $10.5M.
- Sales guidance implies flat growth at best.
- Continued store closures planned into Q4.
- Operating lease liabilities remain high.
- Revenue trend still below prior-year levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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