Financial Analysis

Commitments and Contingencies Indemnifications, Commitments, and Guarantees During the normal course of business, we have made certain indemnifications, commitments, and guarantees under which we may be required to make payments for certain transactions. These indemnifications include, but are not limited to, those given to various lessors in connection with facility leases for certain claims arising from such facility or lease, and indemnifications to our directors and officers to the maximum extent permitted under the laws of the state of Delaware. The majority of these indemnifications, commitments, and guarantees do not provide for any limitation of the maximum potential future payments we could be obligated to make, and their duration may be indefinite. We have not recorded any liability for these indemnifications, commitments, and guarantees in the accompanying Consolidated Balance Sheets. Purchase Obligations At January 31, 2026, our future minimum payments under agreements to purchase services primarily for software maintenance aggregated to $5.5 million, payable as follows: $2.0 million in fiscal 2026, $1.8 million in fiscal 2027, and $1.7 million in fiscal 2028. The amounts purchased, related to these agreements, was as follows: $2.2 million in fiscal 2025, $2.0 million in fiscal 2024, and $1.2 million in fiscal 2023. Legal Proceedings From time to time, we may become involved in lawsuits and other claims arising in our ordinary course of business. We establish loss …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Asset-Backed Credit Agreement On April 27, 2023 (the Closing Date), we entered into an asset-backed credit agreement and revolving line of credit note (the ""Note"" and, collectively, the Credit Agreement) with Wells Fargo Bank, National Association, as lender (the Bank). The Credit Agreement provides for an asset-based, senior secured revolving credit facility (as amended, the ""Revolving Facility) of up to $65.0 million (Revolving Commitment) consisting of revolving loans, letters of credit and swing line loans, with a sub-limit on letters of credit outstanding at any time of $10.0 million and a sub-limit for swing line loans of $7.5 million, which replaced our previous senior secured credit agreement. The Credit Agreement also includes an uncommitted accordion feature whereby we may increase the Revolving Commitment by an aggregate amount not to exceed $12.5 million, subject to certain conditions. On March 25, 2025, we entered into an amendment of the Credit Agreement which extended the maturity date to June 25, 2027. The payment and performance in full of the secured obligations under the Revolving Facility are secured by a lien on and security interest in all of our assets. The maximum borrowings permitted under the Revolving Facility is equal to the lesser of (x) the Revolving Commitment and (y) the applicable borrowing base, which is equal to (i) 90% of our eligible credit card receivables, plus (ii) 90% of the cost of certain adjusted eligible inventory, less certain …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table summarizes net sales from our retail stores and e-com (in thousands): Fiscal Year Ended January 31, 2026 February 1, 2025 February 3, 2024 Retail stores $ 431,129 $ 444,725 $ 485,630 E-com 122,456 124,728 137,453 Total net sales $ 553,585 $ 569,453 $ 623,083 The following table summarizes the percent of net sales by department: Fiscal Year Ended January 31, 2026 February 1, 2025 February 3, 2024 Mens 36 % 36 % 38 % Womens 28 % 28 % 27 % Accessories 14 % 15 % 15 % Footwear 12 % 12 % 12 % Boys 5 % 5 % 4 % Girls 5 % 4 % 4 % Total net sales 100 % 100 % 100 % The following table summarizes the percent of net sales by third-party and proprietary branded merchandise: Fiscal Year Ended January 31, 2026 February 1, 2025 February 3, 2024 Third-party brands 63 % 67 % 68 % Proprietary brands 37 % 33 % 32 % Total net sales 100 % 100 % 100 %

DisaggregationOfRevenueTableTextBlock

"Share-Based Compensation The Tilly's, Inc. 2012 Third Amended and Restated Equity and Incentive Plan (the ""2012 Plan""), authorizes up to 8,613,900 shares for issuance of options, shares or rights to acquire our Class A common stock and allows for, among other things, operating income and comparable store sales growth targets as additional performance goals that may be used in connection with performance-based awards granted under the 2012 Plan. As of January 31, 2026, there were 786,915 shares available for future issuance under the 2012 Plan. Stock Options We grant stock options to certain employees that gives them the right to acquire our Class A common stock under the 2012 Plan. The exercise price of options granted is equal to the closing price per share of our stock at the date of grant. The non-qualified options vest at a rate of 25% on each of the first four anniversaries of the grant date provided that the award recipient continues to be employed by us through each of those vesting dates, and expire ten years from the date of grant. Performance-Based Stock Options In fiscal year 2025, in conjunction with the hiring of our President and Chief Executive Officer, we granted 900,000 time-based stock options and 900,000 performance-based stock options pursuant to the 2012 Plan. Vesting of these performance-based stock options is dependent upon the achievement of certain stock price targets based on the 30 consecutive trading day trailing average market closing price of …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements We determine fair value based on a three-level valuation hierarchy as described below. Fair value is defined as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date. The three-level hierarchy of inputs used to determine fair value is as follows: Level 1 Quoted prices in active markets for identical assets and liabilities. Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs (i.e. projections, estimates, interpretations, etc.) that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We measure certain financial assets at fair value on a recurring basis, including our marketable securities which are classified as available-for-sale securities, and certain cash equivalents, specifically money market securities, commercial paper, municipal bonds and certificates of deposits. The money market accounts are valued based on quoted market prices in active markets. The available-for-sale marketable securities are valued based on other observable inputs for those securities (including mark …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Income Taxes For the year ended January 31, 2026 the pre-tax loss from operations was entirely from domestic operations. The components of income tax (benefit) expense for fiscal years 2025, 2024 and 2023 were as follows (in thousands): Fiscal Year Ended January 31, 2026 February 1, 2025 February 3, 2024 Current: Federal $ (203) $ $ 83 State 66 217 245 (137) 217 328 Deferred: Federal 4,882 State 3,499 8,381 Total income tax (benefit) expense $ (137) $ 217 $ 8,709 A reconciliation of income tax benefit to the amount computed at the federal statutory rate for fiscal year 2025 is as follows (in thousands): Fiscal Year Ended January 31, 2026 Amount Percent Income tax (benefit) at statutory federal rate $ (3,693) 21.0 % State and local income tax, net of federal benefits (1) 52 (0.3) % Tax credits Work opportunity tax credit (138) 0.8 % Changes in valuation allowance 3,257 (18.5) % Nontaxable or nondeductible items Nondeductible executive compensation 55 (0.3) % Enhanced contribution deduction (34) 0.2 % Share-based compensation 212 (1.2) % Permanent items - other 80 (0.5) % Other Return to provision and true-ups 72 (0.4) % Total income tax benefit $ (137) 0.8 % (1) The states that contribute to the majority (greater than 50%) of the tax effect in this category include California and Texas for fiscal year 2025. A reconciliation of income tax expense to the amount computed at the federal statutory rate for fiscal years 2024 and 2023 is as follows (in thousands): Fiscal Year Ended …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Leases We conduct all of our retail sales and corporate operations in leased facilities. Lease terms generally range up to ten years in duration (subject to elective extensions) and provide for escalations in base rents. Many of our store leases contain one or more options to renew the lease at our sole discretion. Generally, we do not consider any additional renewal periods to be reasonably certain of being exercised. Most store leases include tenant allowances from landlords, rent escalation clauses and/or contingent rent provisions. Certain leases provide for additional rent based on a percentage of sales and annual rent increases generally based upon the Consumer Price Index. In addition, most of our store leases are net leases, which typically require us to be responsible for certain property operating expenses, including property taxes, insurance, common area maintenance, in addition to base rent. Many of our store leases contain certain co-tenancy provisions that permit us to pay rent based on a pre-determined percentage of sales when the occupancy of the retail center falls below minimums established in the lease. For non-cancelable operating lease agreements, operating lease assets and operating lease liabilities are established for leases with an expected term greater than one year and we recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a straight-line basis. Leases with terms of 12 months or less are expe …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Adopted Accounting Standards In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, (ASU 2023-09). ASU 2023-09 requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid and other disclosures. The new standard is effective for public entities with annual periods beginning after December 15, 2024, with early adoption permitted and should be applied prospectively with the option of retrospective application. This guidance was effective for us for the annual report for fiscal 2025 and we have adopted the guidance as of the effective date on a prospective basis. Other than the new disclosure requirements, the adoption of this guidance did not have a significant impact on our consolidated financial statements. Refer to ""Note 14: Income Taxes"" for further information. New Accounting Standards Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement (Subtopic 220-40): Reporting Comprehensive Income - Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses, (""ASU 2024-03""). ASU 2024-03 requires public business entities to disclose in the notes to the financial statements, among other things, specific information about certain costs and expenses including purchases of inventory, employee compensation, and depreciation and amortization. This new standard is effective for fiscal years b …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Retirement Savings PlanThe Tillys 401(k) Plan (the 401(k) Plan) is a qualified plan under Section401(k) of the Internal Revenue Code of 1986, as amended (the ""Code""). The 401(k) Plan covers all employees that have attained age 21 and completed at least three months of employment tenure. Matching contributions to the 401(k) Plan by the Company may be made at the discretion of our Board of Directors. The Company did not make any matching contributions to the 401(k) Plan in fiscal 2025, 2024 or 2023"

PensionAndOtherPostretirementBenefitsDisclosureTextBlock

Related Party Transactions Certain Leases As discussed in Note 9: Leases, we lease certain facilities from companies that are owned by the co-founders of Tillys. Tilly's Life Center Tillys Life Center, (TLC), is a charitable organization which provides underprivileged youth a healthy and caring environment. One of the Companys co-founders is also the founder and President of TLC. In fiscal 2025, 2024 and 2023, our Board of Directors approved annual financial support for TLC of $0.1 million, $0.2 million and $0.2 million, respectively. We sublease a portion of our office space, approximately 5,887 square feet, in the 17 Pasteur Irvine, California facility to TLC, a related party and a charitable organization. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

"Segment Information Tillys operates in one, consolidated operating and reportable segment, which is as a retailer of casual apparel, footwear, accessories, and hardgoods (the ""retail segment""). Our chief operating decision maker (""CODM"") for the periods presented is our President and Chief Executive Officer. Our CODM reviews financial information on a consolidated basis for the purposes of evaluating financial performance, allocating resources and making operational decisions. The retail segment derives revenues from our stores located in a variety of retail centers in the United States and via our website. We identified one reportable segment based on the similar nature of products sold, production, merchandising and distribution processes involved, target customers, and economic characteristics. The CODM measures performance for the segment primarily based on operating (loss) income. The CODM uses operating (loss) income to evaluate operating performance and determine allocation of resources to attempt to drive improved performance. The measure of segment assets is reported as total assets on the Consolidated Balance Sheet. The accounting policies of the retail segment are the same as those described in ""Note 2: Summary of Significant Accounting Policies"". Financial information, including segment revenue, significant expenses, and operating loss for fiscal years 2025, 2024 and 2023 were as follows (in thousands): Fiscal Year Ended January 31, 2026 February 1, 2025 Fe …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Cash and Cash Equivalents We consider all short-term investments with an initial maturity of 90 days or less when purchased to be cash equivalents. Marketable Securities Marketable debt securities are classified as available-for-sale or held-to-maturity and are carried at fair value or amortized cost plus accrued income, respectively. Unrealized holding gains and losses, net of income taxes, on available-for-sale debt securities are reflected as a separate component of stockholders equity until realized. For the purposes of computing realized and unrealized gains and losses, cost is determined on a specific identification basis. We have elected the portfolio approach to eliminate the deferred tax consequences that remain in accumulated other comprehensive income. We classify all marketable securities within current assets on our accompanying Consolidated Balance Sheets. Merchandise Inventories Merchandise inventories are comprised of finished goods offered for sale at our retail stores and online. Inventories are stated at the lower of cost or net realizable value using the retail inventory method. An initial markup is applied to inventory at cost in order to establish a cost-to-retail ratio. We believe that the retail inventory method approximates cost. Shipping and handling costs for merchandise shipped to customers of $16.9 million, $14.7 million and $17.0 million in fiscal years 2025, 2024 and 2023, respectively, are included in …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Subsequent Event On February 26, 2026, the Board of Directors (the ""Board"") of the Company approved, and the Company executed, an amendment to the Company's Third Amended and Restated Tilly's 2012 Equity and Incentive Award Plan (""Amended 2012 Plan"") to increase the maximum aggregate number of shares of the Company's Class A common stock that may be subject to one or more awards granted to any person pursuant to the 2012 Plan during any calendar year to 2,500,000 shares."

SubsequentEventsTextBlock

Commitments and Contingencies Indemnifications, Commitments, and Guarantees During the normal course of business, we have made certain indemnifications, commitments, and guarantees under which we may be required to make payments for certain transactions. These indemnifications include, but are not limited to, those given to various lessors in connection with facility leases for certain claims arising from such facility or lease and indemnifications to our directors and officers to the maximum extent permitted under the laws of the state of Delaware. The majority of these indemnifications, commitments, and guarantees do not provide for any limitation of the maximum potential future payments we could be obligated to make, and their duration may be indefinite. We have not recorded any liability for these indemnifications, commitments, and guarantees in the accompanying Consolidated Balance Sheets. Legal Proceedings From time to time, we may become involved in lawsuits and other claims arising from our ordinary course of business. We establish loss provisions for matters in which losses are probable and can be reasonably estimated. For some matters, we are currently unable to predict the ultimate outcome, determine whether a liability has been incurred or make an estimate of the reasonably possible liability that could result from an unfavorable outcome because of the uncertainties related to the occurrence, amount and range of loss on any pending litigation or claim. Because of …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Asset-Backed Credit Agreement On April 27, 2023 (the Closing Date), we entered into an asset-backed credit agreement and revolving line of credit note (the ""Note"" and, collectively, the Credit Agreement) with Wells Fargo Bank, National Association, as lender (the Bank). The Credit Agreement provides for an asset-based, senior secured revolving credit facility (as amended, the ""Revolving Facility) of up to $65.0 million (Revolving Commitment) consisting of revolving loans, letters of credit and swing line loans, with a sub-limit on letters of credit outstanding at any time of $10.0 million and a sub-limit for swing line loans of $7.5 million, which replaced our previous senior secured credit agreement. The Credit Agreement also includes an uncommitted accordion feature whereby we may increase the Revolving Commitment by an aggregate amount not to exceed $12.5 million, subject to certain conditions. On March 25, 2025, we entered into an amendment of the Credit Agreement which extended the maturity date to June 25, 2027. The payment and performance in full of the secured obligations under the Revolving Facility are secured by a lien on and security interest in all of our assets. The maximum borrowings permitted under the Revolving Facility is equal to the lesser of (x) the Revolving Commitment and (y) the applicable borrowing base, which is equal to (i) 90% of our eligible credit card receivables, plus (ii) 90% of the cost of certain adjusted eligible inventory, less certain …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table summarizes net sales from our retail stores and e-com (in thousands): Thirteen Weeks Ended May 2, 2026 May 3, 2025 Retail stores $ 96,317 $ 85,912 E-com 28,401 21,699 Total net sales $ 124,718 $ 107,611 The following table summarizes the percentage of net sales by department: Thirteen Weeks Ended May 2, 2026 May 3, 2025 Mens 32 % 36 % Womens 32 % 31 % Footwear 14 % 13 % Accessories 11 % 12 % Girls 6 % 4 % Boys 5 % 4 % Total net sales 100 % 100 % The following table summarizes the percentage of net sales by third-party and proprietary branded merchandise: Thirteen Weeks Ended May 2, 2026 May 3, 2025 Third-party 59 % 63 % Proprietary 41 % 37 % Total net sales 100 % 100 %

DisaggregationOfRevenueTableTextBlock

"Share-Based Compensation The Tilly's, Inc. 2012 Third Amended and Restated Equity and Incentive Plan (the ""2012 Plan""), authorizes up to 8,613,900 shares for issuance of options, shares or rights to acquire our Class A common stock and allows for, among other things, operating income and comparable store sales growth targets as additional performance goals that may be used in connection with performance-based awards granted under the 2012 Plan. As of May 2, 2026, there were 366,290 shares available for future issuance under the 2012 Plan. Stock Options We grant stock options to certain employees that give them the right to acquire our Class A common stock under the 2012 Plan. The exercise price of options granted is equal to the closing price per share of our stock at the date of grant. The non-qualified options vest at a rate of 25% on each of the first four anniversaries of the grant date provided that the award recipient continues to be employed by us through each of those vesting dates and expire ten years from the date of grant. Performance-Based Stock Options In fiscal year 2025, in conjunction with the hiring of our President and Chief Executive Officer, we granted 900,000 time-based stock options and 900,000 performance-based stock options pursuant to the 2012 Plan. Vesting of these performance-based stock options is dependent upon the achievement of certain stock price targets based on the 30 consecutive trading day trailing average market closing price of the Com …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"Fair Value Measurements We determine fair value based on a three-level valuation hierarchy as described below. Fair value is defined as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date. The three-level hierarchy of inputs used to determine fair value is as follows: Level 1 Quoted prices in active markets for identical assets and liabilities. Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs (i.e. projections, estimates, interpretations, etc.) that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We measure certain financial assets at fair value on a recurring basis, including our marketable securities which are classified as available-for-sale securities, and certain cash equivalents, specifically money market securities, commercial paper, municipal bonds and certificates of deposits. The money market accounts are valued based on quoted market prices in active markets. The available-for-sale marketable securities are valued based on other observable inputs for those securities (including mar …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"New Accounting Standards Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement (Subtopic 220-40): Reporting Comprehensive Income - Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses, (""ASU 2024-03""). ASU 2024-03 requires public business entities to disclose in the notes to the financial statements, among other things, specific information about certain costs and expenses including purchases of inventory, employee compensation, and depreciation and amortization. This new standard is effective for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted and should be applied prospectively with the option of retrospective application. We are currently evaluating the impact of this guidance on our consolidated financial statements. In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other - Internal-Use Software: Targeted Improvements to the Accounting for Internal-Use Software , (""ASU 2025-06""). ASU 2025-06 requires entities to begin capitalizing internal-use software when management has authorized and committed to funding the project and it is probable that the project will be completed and the software will be used to perform the function intended. This new standard is effective for fiscal years beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. Early adoption is …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Segment Information Tillys operates in one, consolidated operating and reportable segment, which is as a retailer of casual apparel, footwear, accessories, and hardgoods (the ""retail segment""). Our chief operating decision maker (""CODM"") is our President and Chief Executive Officer. Our CODM reviews financial information on a consolidated basis for the purposes of evaluating financial performance, allocating resources and making operational decisions. The retail segment derives revenues from our stores located in a variety of retail centers in the United States and via our website. We identified one reportable segment based on the similar nature of products sold, production, merchandising and distribution processes involved, target customers, and economic characteristics. The CODM measures performance for the segment primarily based on operating (loss) income. The CODM uses operating (loss) income to evaluate operating performance and determine allocation of resources to seek to promote improved performance. The measure of segment assets is reported as total assets on the Consolidated Balance Sheet. The accounting policies of the retail segment are the same as those described in ""Note 2: Summary of Significant Accounting Policies"". Financial information, including segment revenue, significant expenses, and operating loss for the thirteen week periods ended May 2, 2026 and May 3, 2025 were as follows (in thousands): Thirteen Weeks Ended May 2, 2026 May 3, 2025 Net sales …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Information regarding our significant accounting policies is contained in Note 2, Summary of Significant Accounting Policies, of the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026. Revenue Recognition Revenue is recognized for store sales when the customer receives and pays for the merchandise at the register, net of estimated returns and taxes collected from our customers. For e-commerce (""e-com"") net sales, we recognize revenue, net of sales taxes and estimated sales returns, and the related cost of goods sold at the time the merchandise is shipped to the customer. Amounts related to shipping and handling that are billed to customers are reflected in net sales, and the related costs are reflected in cost of goods sold in the Consolidated Statements of Operations. The following table summarizes net sales from our retail stores and e-com (in thousands): Thirteen Weeks Ended May 2, 2026 May 3, 2025 Retail stores $ 96,317 $ 85,912 E-com 28,401 21,699 Total net sales $ 124,718 $ 107,611 The following table summarizes the percentage of net sales by department: Thirteen Weeks Ended May 2, 2026 May 3, 2025 Mens 32 % 36 % Womens 32 % 31 % Footwear 14 % 13 % Accessories 11 % 12 % Girls 6 % 4 % Boys 5 % 4 % Total net sales 100 % 100 % The following table summarizes the percentage of net sales by third-party and proprietary branded merchandise: Thirteen Weeks Ended May 2, 2026 …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing