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For Q1 ended May 2, 2026, Tillys reported total net sales of $124.7 million, representing a 15.9 per cent increase year on year. Comparable net sales, which include both physical stores and e-commerce, rose by 22.9 per cent. Net sales from physical stores reached $96.3 million, up 12.1 per cent, while e-commerce sales surged 30.9 per cent to $28.4 million.<\/p>\n
Tillys reported a strong start to fiscal 2026, with Q1 net sales rising 15.9 per cent year on year to $124.7 million and comparable sales increasing 22.9 per cent.
\nGross margin expanded 910 basis points to 28.9 per cent, while the net loss narrowed to $8 million.
\nThe retailer expects Q2 sales growth of 6-10 per cent and remains focused on returning to full-year profitability.<\/p>\n
Gross profit improved to $36.1 million, or 28.9 per cent of net sales, up from $21.3 million and 19.8 per cent of net sales in the prior year. The net loss narrowed to $8 million, or $0.26 per share, compared to a net loss of $22.2 million, or $0.74 per share, in the first quarter of fiscal 2025. Operating loss improved to $8.1 million from $22.7 million a year earlier.<\/p>\n
\u201cThe turnaround momentum which began in fiscal 2025 continued through the first quarter of fiscal 2026, extending our streak of comparable net sales growth to three consecutive quarters and nine consecutive months, and delivering our fourth consecutive quarter of year-over-year profit improvement. Returning to profitability is our foremost goal for fiscal 2026. We believe the strength of our start to the fiscal year gives us a clear and credible path to get there, provided we can maintain a strong, positive sales trajectory throughout the year,\u201d said Nate Smith, president and chief executive officer, Tillys, Inc<\/em><\/strong>.<\/p>\n Gross profit margin expanded by 910 basis points to 28.9 per cent, driven by improved full-price selling and better inventory management.<\/p>\n Product margins increased by 400 basis points, while buying, distribution, and occupancy costs improved by 520 basis points, mainly due to lower occupancy expenses from a reduced store count.<\/p>\n Selling, general and administrative (SG&A) expenses were $44.2 million, or 35.4 per cent of net sales, compared to $44 million, or 40.9 per cent, last year.<\/p>\n Total inventories declined by 6.4 per cent year on year, reflecting disciplined inventory management.<\/p>\n Tillys operated 220 stores at the end of Q1, down from 238 a year earlier. Comparable store sales increased 20.8 per cent, while e-commerce represented 22.8 per cent of total net sales, up from 20.2 per cent last year.<\/p>\n The company\u2019s liquidity position remained strong, with $91.8 million in total available liquidity, including $41.1 million in cash, cash equivalents, and marketable securities, and $50.7 million in undrawn borrowing capacity.<\/p>\n For the second quarter (Q2) ending August 1, 2026, Tillys forecasts net sales in the range of $154 million to $160 million, with comparable net sales expected to increase by 6 to 10 per cent year on year.<\/p>\n Product margins are anticipated to be flat to slightly up compared to last year\u2019s record rate for a fiscal second quarter.<\/p>\n SG&A expenses are projected at $48 million to $49 million. Net income is expected to be between $3.8 million and $6 million, or $0.13 to $0.20 per diluted share, compared to $0.10 per diluted share in the prior year\u2019s second quarter.<\/p>\n The company expects to operate 221 stores at the end of the second quarter, down from 232 a year earlier, according to the company\u2019s earnings release.<\/p>\n Tillys remains focused on returning to full-year profitability in fiscal 2026 by sustaining its positive sales trajectory, optimising margins, and maintaining disciplined cost controls.<\/p>\n
<\/p>\n Fibre2Fashion News Desk (CG)<\/p>\n
\n <\/p><\/div>\n\tImproved margins and cost discipline<\/strong><\/h3>\n
\tStore and e-commerce performance<\/h3>\n
\tQ2 FY26 outlook<\/h3>\n