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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 __________________________________________________ FORM 10-Q __________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-35535 __________________________________________________ TILLY'S, INC. (Exact name of Registrant as specified in its charter) __________________________________________________ Delaware 45-21647 ...

Tilly's (TLYS) came out with quarterly earnings of $0.1 per share, beating the Zacks Consensus Estimate of a loss of $0.04 per share. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +350.00%. A quarter ago, it was expected that this clothing and accessories retailer would post a loss of $0.66 per share when it actually produced a loss of $0.74, delivering a surprise of -12.12%.Over the last ...

Financial Data and Key Metrics Changes - The company reported a comparable net sales decrease of 4.5%, which was within the outlook range and represented a second consecutive quarter of sequential trend improvement from 2024 [9] - Total net sales were $151.3 million, a decrease of 7.1% compared to the previous year [12] - Earnings per share were $0.10, beating the earnings outlook range and marking the first profitable quarter since 2022 [10][15] - The company ended the quarter with total liquidity of $114 million and no borrowings [16] Business Line Data and Key Metrics Changes - Net sales from physical stores decreased by 7.3%, representing 81.1% of total net sales, while e-commerce net sales decreased by 6.6%, accounting for 18.9% of total net sales [13] - Gross margin improved by 180 basis points to 32.5% of net sales compared to 30.7% last year [13] - Total SG&A expenses were $46.4 million, a decrease of $4.4 million and 50 basis points as a percentage of net sales compared to last year's second quarter [14] Market Data and Key Metrics Changes - Total comparable net sales for fiscal August increased by 0.9% compared to last year, with comparable net sales from stores increasing by 4.5% [17] - E-commerce net sales decreased by 12.1% during fiscal August, primarily due to a distribution decision by a third-party brand [17] Company Strategy and Development Direction - The company aims to stabilize its business and improve product assortment while enhancing marketing efforts to build customer awareness [10][20] - Management is focused on reducing inventory levels and improving inventory aging, with a 14.5% reduction in total balance sheet inventory compared to last year [17] - The company plans to remain debt-free throughout fiscal 2025 and expects to close additional stores as part of its strategy [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about continued improvement in performance under new leadership [20] - The company anticipates a modest impact from tariffs on product costs for the remainder of fiscal 2025, with potential larger impacts in fiscal 2026 [12] - Management noted historical trends of sales slowdown after the back-to-school season, which informs their conservative outlook for the upcoming months [34] Other Important Information - The company ended the second quarter with 232 total stores, a net decrease of 15 stores or 6.1% compared to a year ago [13] - The company has 45 lease decisions remaining to be made by the end of the fiscal year, which may result in additional store closures [19] Q&A Session Summary Question: Broader opportunity and early priorities at Tilly's - The new CEO emphasized the importance of focusing on successful strategies while identifying areas for improvement [22][24] Question: Progression of comparable sales during the second quarter - Management noted a sequential improvement in sales, with fiscal May at -2%, June at -7.6%, and July at -3% [28] Question: Drivers of the positive comp in August - All apparel departments showed positive movement in August, contributing to overall sales improvement [28] Question: Outlook for the third quarter and potential sales erosion - Management indicated that historical patterns suggest a slowdown post-back-to-school, which informed their conservative sales outlook [34] Question: Gross margin and product margin improvements - The company reported improved product margins due to better inventory management and reduced markdowns [36][38] Question: Impact of tariffs and vendor pricing - Management noted that some vendors are adjusting prices in response to tariffs, but the net impact on costs has been limited [39][40] Question: Opportunities for further cost containment in SG&A - Management expects to see continued savings in store labor and other expenses in the upcoming quarters [42][43]

Exhibit 99.1 Fiscal 2025 Second Quarter Operating Results Overview The following comparisons refer to the Company's operating results for the second quarter of fiscal 2025 ended August 2, 2025 versus the second quarter of fiscal 2024 ended August 3, 2024. 1 • Total net sales were $151.3 million, a decrease of 7.1%. Total comparable net sales, including both physical stores and e-commerce ("e-com"), decreased by 4.5%. ◦ Net sales from physical stores were $122.7 million, a decrease of 7.3%. The Company ended ...

Tillys joins a growing list of leading retailers using the Impact Analytics AI-native platform to modernize inventory, pricing, and merchandising strategies. NEW YORK, July 22, 2025 (GLOBE NEWSWIRE) -- Impact AnalyticsⓇ, the leader in AI-native innovation and the only provider of an end-to-end platform for pricing, merchandising, and supply chain, has announced its partnership with Tilly's, Inc. (NYSE: TLYS, "Tillys"), a leading specialty retailer of casual apparel, footwear, and accessories, to drive inven ...

Financial Performance - Total net sales for the first quarter of fiscal 2025 were $107.6 million, a decrease of 7.1% compared to $115.9 million in the same period last year[111]. - Comparable store net sales decreased by 7.0% relative to the comparable 13-week period ended May 4, 2024[114]. - Gross profit was $21.3 million, or 19.8% of net sales, down from $24.3 million, or 21.0% of net sales, last year[115]. - Net sales from physical stores were $85.9 million, a decrease of 7.4%, while e-commerce net sales were $21.7 million, a decrease of 5.8%[117]. - Operating loss was $22.7 million, or 21.1% of net sales, compared to $20.8 million, or 17.9% of net sales last year[118]. - Net loss was $22.2 million, or $0.74 net loss per share, compared to $19.6 million, or $0.65 net loss per share last year[120]. Store Operations - The company expects to close 12 stores during fiscal 2025, with seven already closed by May 2025[98]. - The company operated 238 stores as of May 3, 2025, down from 246 stores at the same time last year[93]. - Average net sales per physical store decreased to $353, down from $373 in the prior year[112]. Expenses - Store payroll and payroll-related expenses represented approximately 45% of total selling, general and administrative expenses in the first quarter of fiscal 2025[95]. - SG&A expenses were $44.0 million, or 40.9% of net sales, compared to $45.1 million, or 38.9% of net sales last year[116]. Cash Flow and Financing - Net cash used in operating activities was $8.1 million this year, a decrease of $17.6 million compared to $25.7 million last year[126]. - Net cash provided by investing activities was $14.3 million this year, compared to net cash used of $1.6 million last year[129]. - As of May 3, 2025, the company had no outstanding borrowings under the Credit Agreement and was eligible to borrow up to $55.4 million[135]. - The company expects to finance operations and capital expenditures with existing cash on hand and cash flows from operations[121]. Taxation - The effective income tax rate is expected to be near zero until the company can return to generating consistent operating profits[97]. - The income tax benefit was $0.1 million, or 0.6% of pre-tax loss, compared to $13 thousand, or 0.1% of pre-tax loss last year[119]. Future Outlook - The company anticipates that a consistent comparable net sales decrease of approximately 10% or more would necessitate borrowing under its credit facility[96]. - Working capital decreased to $10.5 million from $31.6 million, a decrease of $21.1 million[123].

Financial Performance - Tilly's reported a quarterly loss of $0.74 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.66, and compared to a loss of $0.48 per share a year ago, indicating a significant decline in performance [1] - The company posted revenues of $107.61 million for the quarter ended April 2025, missing the Zacks Consensus Estimate by 0.54%, and down from $115.86 million in the same quarter last year [2] - Over the last four quarters, Tilly's has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - Tilly's shares have declined approximately 68.5% since the beginning of the year, contrasting sharply with the S&P 500's gain of 1.5% [3] - The current Zacks Rank for Tilly's is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $147.22 million, and for the current fiscal year, it is -$1.24 on revenues of $549.87 million [7] - The trend of estimate revisions for Tilly's is mixed, and future changes in estimates will be closely monitored following the recent earnings report [6][7] Industry Context - The Retail - Apparel and Shoes industry, to which Tilly's belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests that the performance of stocks can be significantly influenced by the outlook for the industry [8]

Financial Data and Key Metrics Changes - The company's first quarter net sales were $107.6 million, a decrease of 7.1% compared to the previous year [8] - Comparable net sales decreased by 7%, an improvement from an 11.2% decrease in the previous quarter [4] - Gross margin was 19.8% of net sales, down from 21% last year, while product margins improved by 40 basis points [9] - The net loss was $22.2 million or $0.74 per share, compared to a net loss of $19.6 million or $0.65 per share last year [11] Business Line Data and Key Metrics Changes - Net sales from physical stores decreased by 7.4%, while e-commerce net sales decreased by 5.8% [8] - Physical stores represented 79.8% of total net sales, while e-commerce represented 20.2% [8] Market Data and Key Metrics Changes - The company ended the first quarter with 238 total stores, a net decrease of eight stores compared to a year ago [9] - Total balance sheet inventory was 3.8% lower than at the end of last year's first quarter [11] Company Strategy and Development Direction - The company is actively pursuing marketing opportunities to build mindshare with current and prospective customers, including launching a TikTok shop [5][6] - The focus is on solidifying the company's position at the intersection of youth culture, fashion, and music to improve customer affinity [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the potential stabilization of the business, noting improvements in merchandise assortment and customer engagement [15] - The company expects to end the second quarter with total liquidity of approximately $106 million to $111 million, remaining debt-free [13] Other Important Information - The company anticipates a comparable net sales range of a decrease of 5% to flat for the second quarter [12] - There are plans to close two additional stores in the third quarter, with up to 15 more closures possible depending on lease negotiations [13] Q&A Session Summary Question: Can you unpack the cadence of the first quarter and provide transaction versus ticket breakdown? - February was down 5.7%, March down 13.8%, and April was up 1.5%. Traffic was down low single digits, but average sale was up 1% in May [18] Question: Any impact from last year's calendar shift in June and July? - The bulk of sales volume occurs at the end of the quarter, with May typically representing only about 25% of the second quarter [20] Question: What is the outlook on merchandise assortments? - Merchandise is selling better, particularly in the junior category, and traffic has been consistently improving [22][31] Question: What is the expected impact of tariffs on margins? - No material impact is expected from tariffs for the remainder of the year, with product margins anticipated to be consistent with last year [25][26] Question: Have there been discussions with activist investors? - No discussions have occurred with new investors, and no requests for board seats have been made [38] Question: What is the outlook on occupancy costs? - Occupancy costs will continue to be lower due to store closures, but leveraging will depend on achieving flat or positive comparable sales [40][41]

Financial Data and Key Metrics Changes - For Q1 fiscal 2025, total net sales were $107.6 million, a decrease of 7.1% compared to the previous year [7] - Comparable net sales decreased by 7%, an improvement from an 11.2% decrease in Q4 fiscal 2024 [4] - Gross margin was 19.8% of net sales, down from 21% last year, while product margins improved by 40 basis points [9] - Net loss was $22.2 million or $0.74 per share, compared to a net loss of $19.6 million or $0.65 per share last year [11] Business Line Data and Key Metrics Changes - Net sales from physical stores decreased by 7.4%, while e-commerce net sales decreased by 5.8% [7] - Physical stores represented 79.8% of total net sales, while e-commerce represented 20.2% [8] Market Data and Key Metrics Changes - Total comparable net sales for May 2025 decreased by 2.2%, indicating a sequential improvement [11] - The company ended Q1 with 238 total stores, a net decrease of eight stores compared to the previous year [9] Company Strategy and Development Direction - The company is focusing on building mindshare with customers through marketing initiatives, including the launch of a TikTok shop [5] - Plans to close additional stores based on lease negotiations, with up to 15 potential closures by the end of the fiscal year [12] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about stabilization in business trends, particularly with the upcoming back-to-school season [20] - The impact of tariffs on product costs is currently considered minor, with expectations for product margins to be consistent or slightly better than last year [5][24] Other Important Information - Total liquidity at the end of Q1 was $92.6 million, with no borrowings and an undrawn borrowing capacity of $55.4 million [11] - The company expects to maintain a debt-free balance sheet throughout fiscal 2025 [12] Q&A Session Summary Question: Can you unpack the cadence of the first quarter sales? - February was down 5.7%, March down 13.8%, and April up 1.5%, with traffic down low single digits [16][17] Question: What are the expectations for the second quarter guidance? - The bulk of sales volume occurs at the end of the quarter, with cautious optimism for the back-to-school season [20] Question: Are there any impacts from tariffs on margins? - No material impact is expected from tariffs for the remainder of the year, with product margins anticipated to be consistent with last year [22][24] Question: Are there discussions with activist investors? - No discussions have occurred with new investors, and no requests for board seats have been made [37] Question: What is the outlook for product margins? - Product margins are expected to continue to leverage, depending on the ability to achieve flat or positive comparable sales [39]