Californian fashion retailer Tillys has managed to return to growth after a period of decline, with the company’s CEO lauding the company’s future potential.

Year-end sales of $553.6 million represented a 2.8 per cent decrease from the 2024 financial year. The final quarter, however, recorded a 5.3 per cent increase in sales.

Fourth quarter sales from Tillys’ stores was $112.2 million, an increase of 3.6 per cent on the prior comparable period. Online sales continue to grow, reaching $43 million in the quarter, a 9.8 per cent increase. 

“Since turning positive in August, we have now produced seven consecutive months of comparable net sales growth, including February 2026 increasing by 20 percent,” said Nate Smith, president and CEO.

“We are off to a strong start to fiscal 2026 and we feel optimistic about our prospects for the year.”

A gross profit margin 33.2 per cent for the quarter represented a jump from the full-year figure of 29.7 per cent. Going forward, Tillys expects its sales to increase by 16 to 22 per cent by the end of the current financial year.