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Here are 1-3 brief analogies to describe Tilly's (TLYS):

• Urban Outfitters (URBN) for the action sports and casual lifestyle crowd.
• Foot Locker (FL) for surf, skate, and casual apparel.

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• Casual Apparel: Tilly's offers a wide selection of clothing items including t-shirts, hoodies, jeans, shorts, dresses, and outerwear for men, women, and juniors.
• Footwear: The company sells various styles of shoes, such as sneakers, sandals, boots, and skate shoes, from popular brands.
• Accessories: Tilly's provides a range of complementary items including hats, backpacks, sunglasses, jewelry, belts, and socks.

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Tilly's (TLYS) Major Customers

Tilly's (TLYS) operates as a specialty retailer of casual apparel, footwear, and accessories. It sells primarily to individuals through its retail stores and e-commerce platform, rather than to other companies.

Based on its target market and product offerings, Tilly's serves the following categories of individual customers:

• Youth-Oriented Demographic: The core customer base consists primarily of high school and college-aged individuals, typically Gen Z and younger Millennials. These customers are generally fashion-conscious and seeking current trends in casual apparel, footwear, and accessories.
• Action Sports and Streetwear Enthusiasts: Tilly's caters to individuals who embrace the action sports lifestyle (skate, surf, snow) and streetwear culture. Its product assortment includes popular brands and styles associated with these subcultures, reflecting a relaxed, active, and trend-aware lifestyle.
• Brand-Conscious Casual Shoppers: Customers who are looking for a wide assortment of popular and aspirational brands across various categories, including denim, activewear, graphic tees, hoodies, and sneakers. These shoppers seek both established and emerging brands relevant to casual and youth fashion.

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Nate Smith, President, Chief Executive Officer

Nate Smith joined Tilly's in August 2025. Prior to this, he served as Chief Executive Officer of Marolina Outdoor, Inc. since September 2024. From June 2017 to April 2024, he was President, Americas at Boardriders, Inc. Smith also held leadership roles at Oakley, Inc., serving as Vice President/General Manager, North American Wholesale from September 2015 to June 2017, and Vice President, Oakley Defense from July 2012 to June 2017. His career includes executive positions at Ipath Footwear, MV Transportation, Inc., and Patagonia, Inc., following eight years of service in the United States Navy.

Michael Henry, Executive Vice President, Chief Financial Officer

Michael Henry became Tilly's Chief Financial Officer in June 2015. Before joining Tilly's, he was Senior Vice President, Global Controller at Quiksilver, Inc. from July 2012 to May 2015. For over a decade prior to Quiksilver, he served Pacific Sunwear of California, Inc. in various capacities, including Senior Vice President and Chief Financial Officer from January 2008 to April 2011. He also worked in the audit practice of Deloitte & Touche LLP from September 1994 to September 2000. Henry is a certified public accountant (inactive).

Hezy Shaked, Co-Founder, Executive Chairman, Chief Strategy Officer

Hezy Shaked co-founded the Tilly's concept in 1982 and established the company in 1984. He currently serves as Executive Chairman and Chief Strategy Officer, a role he will fully transition into on August 18, 2025, upon Nate Smith's appointment as CEO. Shaked has served as Chairman of the Board since Tilly's inception and as Chief Strategy Officer since February 2011. He has held the President and Chief Executive Officer role multiple times, including from the company's inception to September 2006, from September 2008 to February 2011, and most recently as interim CEO from January 2024 before being appointed permanent CEO in September 2024. He immigrated to the United States from Israel and began his retail career at swap meets. In 2005, Tilly's received a majority stake investment from private equity firm Golden Gate Capital, before going public in 2012.

Michael Cingolani, Senior Vice President, General Merchandising Manager

Michael Cingolani was promoted to Senior Vice President, General Merchandising Manager in November 2024. He previously served as Tilly's Senior Director, Divisional Merchandise Manager, Men's and Boys Apparel, since August 2024. His prior experience includes serving as Chief Merchandising Officer at rue21 from July 2022 to May 2024, and earlier, as Tilly's Divisional Merchandise Manager, Men's and Boys Branded Apparel and Fashion Tops for five years. He also held a Director/Sr. Buyer position at Foot Locker, Inc.

Shelly Bueno-Johnson, Vice President of Stores

Shelly Bueno-Johnson serves as the Vice President of Stores for Tilly's.

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Key Business Risks for Tilly's (TLYS)

1. Intense Competition and Rapidly Shifting Consumer Preferences: Tilly's operates in a highly competitive apparel retail market, contending with numerous mall-based specialty retailers, large diversified online platforms, department stores, off-price retailers, and direct marketers. Many of its competitors possess significantly greater financial, marketing, and other resources. The challenge is further amplified by the need to constantly adapt to the rapidly evolving fashion trends and preferences of its core youth demographic. Tilly's has faced difficulties in meeting customer demands, which has contributed to declining comparable store sales.
2. Declining Sales and Profitability: The company has experienced a trend of declining total net sales and comparable net sales in recent fiscal years, leading to operating and net losses. For example, fiscal year 2024 saw total net sales decrease by 8.6% compared to the previous year, with comparable net sales down by 11.2%. While some recent sequential improvements in comparable net sales have been noted, achieving sustained profitable growth remains a significant challenge. This risk is compounded by operational issues, including merchandising problems and the effective management of inventory.
3. Macroeconomic Uncertainties: Tilly's is susceptible to broader macroeconomic conditions, such as inflationary pressures and shifts in consumer spending sentiment. These factors can directly influence discretionary purchases of apparel and footwear, impacting Tilly's sales performance. The cyclical nature of the retail industry means that economic downturns or uncertainties can lead to reduced consumer confidence and spending, thereby adversely affecting the company's financial results.

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Tilly's (symbol: TLYS) operates as a specialty retailer primarily focused on casual apparel, footwear, accessories, and hardgoods for a youth-oriented demographic, typically aged 12 to 30, across the United States.

The addressable markets for Tilly's main products and services in the U.S. region are:

• U.S. Clothing and Clothing Accessory Retailers Market: This broad market, which encompasses both clothing and various related accessories, was valued at approximately $309.0 billion in 2024 and is projected to reach $309.9 billion in 2025.
• U.S. Footwear Market: The footwear market in the United States is a significant addressable market for Tilly's, projected to grow from $103 billion in 2025 to $130.95 billion by 2030. In 2024, the market size was approximately $94.7 billion.
• U.S. Fashion Accessories Market: For specific fashion accessories like jewelry, handbags, watches, belts, wallets, and sunglasses, the U.S. fashion accessories market was valued at USD 223.2 billion in 2024 and is projected to reach USD 477.4 billion by 2034.

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Tilly's (TLYS) is focusing on several key areas to drive future revenue growth over the next 2-3 years, despite operating in a challenging retail environment characterized by declining sales. The company's strategy appears to center on optimizing its existing business and selectively pursuing growth opportunities.

Here are 3-5 expected drivers of future revenue growth:

1. Enhanced Merchandise Assortment and Marketing Efforts: Tilly's aims to improve its merchandise assortment and bolster its marketing efforts, including increasing its presence on social platforms like TikTok. This strategy is intended to address evolving consumer behaviors and competitive pressures, ultimately aiming to boost customer engagement and sales per customer.
2. Optimized E-commerce Performance: Despite facing recent declines in e-commerce sales, Tilly's has articulated a goal to grow its online business. Strategic initiatives in this area could involve improving the online shopping experience, expanding digital marketing, and leveraging new platforms to drive increased online revenue.
3. Improved Product Margins and Inventory Management: A significant focus for Tilly's is the improvement of product margins, partly through higher initial markups and reduced markdowns. Coupled with more efficient inventory management, ensuring popular products are available while minimizing excess stock, this can support revenue growth by allowing for more competitive pricing and reducing lost sales due to out-of-stock items.
4. Strategic Store Optimization: While Tilly's has been undertaking store closures to address underperforming locations, the company has also indicated "geographic portability and real estate flexibility," suggesting a potential for strategic new store openings over time. This targeted approach to optimizing its physical footprint, rather than just widespread closures, could contribute to revenue growth in more profitable or strategically important locations.

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Share Repurchases

• Tilly's authorized a share repurchase program in March 2022, allowing for the repurchase of up to two million shares of its Class A common stock over the subsequent twelve months.
• The company repurchased approximately $10.9 million of common stock during fiscal year 2022.

Share Issuance

• In fiscal year 2023, Tilly's generated $0.4 million from employee exercises of stock options.
• The number of Tilly's outstanding shares increased by 0.43% in one year.

Capital Expenditures

• Tilly's reported capital expenditures of $6 million in fiscal 2022 and $4 million in fiscal 2023.
• For the first half of fiscal 2025, year-to-date capital expenditures totaled $2.1 million, compared to $4.6 million during the same period in fiscal 2024.
• The primary focus of capital expenditures includes opening a limited number of new stores within existing markets and reinvesting in existing stores to enhance customer experience.