Tillys Inc

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.

Tilly's reported fiscal second-quarter GAAP earnings of $0.27 per share, beating estimates by $0.10, and revenue of $163.51 million, up 8.1% year over year and surpassing consensus by $6.51 million. The company also provided third-quarter guidance, projecting net sales between $150 million and $155 million, above the consensus of $140.30 million, with comparable net sales expected to rise 10% to 14%. It anticipates net income of $2.2 million to $3.7 million, or $0.07 to $0.12 per diluted share, marking a sixth consecutive quarter of year-over-year profit improvement. The company expects to end the quarter with 220 stores and total liquidity of approximately $125 million or more. Shares jumped 18% in after-hours trading.

Victoria's Secret reported first-quarter revenue of $1.56 billion, up 15.3% year on year and exceeding analyst expectations by 2.6%. The company also beat earnings per share and gross margin estimates, with double-digit sales growth across its Victoria's Secret, PINK, and Beauty segments. It raised its full-year guidance by the most among the eight apparel retailers tracked, and its stock has surged 54.4% since the announcement to $83.85. Among peers, Tilly's posted the fastest revenue growth at 15.9% and the biggest estimate beat, while Lululemon delivered the weakest guidance update, with its stock falling 8.9%.

Zacks Investment Research added five stocks to its Zacks Rank Number 1 Strong Buy list on June 30th. Fomento Económico Mexicano, a beverage bottling company, saw its current-year earnings consensus estimate increase 18.5% over the last 60 days. Avnet, an electronic components company, had its estimate rise 10.8%. Tilly's, a specialty retailer, experienced a 64.7% increase. Reddit, an online community platform, saw a 21.4% rise. Hamilton Insurance Group, an insurance and reinsurance company, also had an 18.5% increase.

Urban Outfitters reported record first-quarter sales and earnings, with revenue rising 11.4% year on year to $1.48 billion, beating analyst estimates by 1.4%. The company was one of eight apparel retailers tracked by StockStory that collectively exceeded revenue consensus by 1% and issued in-line guidance for the next quarter. Among the group, Tilly's delivered the strongest performance with revenue up 15.9% to $124.7 million and the biggest analyst beat, while Lululemon was the weakest, missing full-year EPS guidance and seeing its stock fall 15.6%. Abercrombie & Fitch and American Eagle posted mixed results, with revenue of $1.11 billion and $1.20 billion respectively. On average, share prices of the eight retailers have held steady, rising 1.8% since the latest earnings reports.