Tillys Returns to Profit in Q2 2025

Tilly's(NYSE:TLYS) reported its fiscal Q2 2025 results on July 28, 2025, delivering its first profitable quarter since 2022, with earnings per share of $0.10 and a 4.5% year-over-year decrease in comparable net sales. Despite ongoing store closures and a decline in total net sales to $151.3 million, the company improved its gross margin by 180 basis points and continued to reduce inventory and SG&A costs compared to last year's second quarter. The following insights highlight critical factors affecting long-term investors, including improved operational efficiency, evolving digital engagement, and strategic risks related to vendor dependence and tariffs. The fiscal Q2 2025 period ended on August 3, 2025.Gross margin rose to 32.5% of net sales, up 180 basis points year-over-year, with product margins specifically up 210 basis points, reflecting a sharp inventory reduction of 14.5% and better management of markdowns. Store count fell by 15 locations (down 6.1% year-over-year), emphasizing a disciplined approach to footprint rationalization paired with sharper inventory planning.This margin expansion demonstrates management’s effective execution in inventory discipline and cost rationalization during a period of ongoing sales contraction.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool