Tilly's Valuation Keeps Decreasing, But The Stock Is Not An Opportunity Without Signs Of A Turnaround

Tilly's is an apparel retailer from the US. I started covering the company in February 2024 with a Hold rating. The rating was based on the company's consistently negative comparable sales and operational losses. The company trades at a low valuation if we assume it can return to pre-pandemic profitability levels, but that is uncertain. The 1Q24 results did not change the thesis above. The company posted negative revenue comparables of 9.4%, with negative operating margins of almost 18% and close to $20.8 m ...