Tilly's, Inc. (TLYS): Modelo de negócios Canvas [Jan-2025 Atualizado]

Mergulhe no mundo dinâmico da Tilly's, Inc. (Tlys), uma potência de varejo que magistralmente esculpiu seu nicho no mercado de jovens e adolescentes da moda. Com um modelo de negócios estratégico que combina roupas da moda, plataformas inovadoras de comércio eletrônico e uma profunda compreensão da cultura de surf e skate, a Tilly's se transformou de um varejista local da Califórnia em uma marca nacional que ressoa com jovens consumidores da moda. Sua abordagem única combina estilo acessível, coleções com curadoria e uma experiência de compra omnichannel que mantém adolescentes e jovens adultos voltando para mais.

Tilly's, Inc. (TLYS) - Modelo de negócios: Parcerias -chave

Marcas de vestuário e calçados

A Tilly's mantém parcerias estratégicas com várias marcas:

Marca	Detalhes da parceria	Contribuição estimada de vendas
Vans	Distribuição de produtos exclusivos e não exclusivos	Aproximadamente 15-20% da receita total de mercadorias
Nike	Parceria por atacado e distribuição de varejo	Aproximadamente 12-18% da receita total de mercadorias
Adidas	O fornecimento de produtos e parceria de varejo	Aproximadamente 10-15% da receita total de mercadorias

Shopping e gerentes de propriedades do shopping center

As principais parcerias de gerenciamento de propriedades incluem:

• Grupo de Propriedade Simon
• Grupo Westfield
• Macerich Company

A partir de 2023, a Tilly's opera 231 lojas de varejo em 33 estados, principalmente em shopping centers e shoppings.

Plataforma de comércio eletrônico e provedores de tecnologia

Parceiro de tecnologia	Serviço prestado	Ano de implementação
Shopify	Infraestrutura da plataforma de comércio eletrônico	2018
Adobe Commerce	Soluções de comércio digital	2020

As vendas on -line representaram 28,5% do total de vendas líquidas no ano fiscal de 2022.

Parceiros de logística e cadeia de suprimentos

• FedEx Logistics
• Soluções da cadeia de suprimentos da UPS
• Encaminhamento global da DHL

Valor total de inventário em 28 de janeiro de 2023: US $ 76,8 milhões

Influenciadores de mídia social e embaixadores da marca

Categoria de influenciadores	Alcance estimado	Taxa de engajamento
Influenciadores esportivos de ação	500.000-750.000 seguidores	3.5-4.2%
Influenciadores de moda/estilo de vida	250.000-500.000 seguidores	2.8-3.5%

Tilly's, Inc. (TLYS) - Modelo de negócios: atividades -chave

Operações e gerenciamento de lojas de varejo

No terceiro trimestre de 2023, a Tilly's opera 241 lojas de varejo em 20 estados nos Estados Unidos. A empresa mantém um tamanho médio da loja de aproximadamente 4.500 pés quadrados.

Métrica	Valor
Total de lojas de varejo	241
Estados cobertos	20
Tamanho médio da loja	4.500 pés quadrados

Desenvolvimento e manutenção da plataforma de comércio eletrônico

No ano fiscal de 2023, as vendas de comércio eletrônico da Tilly representaram 35,2% do total de vendas líquidas, totalizando US $ 146,1 milhões.

• Plataforma digital lançada em 2010
• Aplicativo móvel disponível no iOS e Android
• Estratégia de varejo omnichannel

Fornecimento de produtos e gerenciamento de inventário

A Tilly's mantém um inventário diversificado de produtos em várias categorias:

Categoria de produto	Porcentagem de inventário
Vestuário	52%
Calçados	28%
Acessórios	20%

Marketing e promoção de marca

As despesas de marketing para o ano fiscal de 2023 foram de US $ 15,3 milhões, representando 3,7% do total de vendas líquidas.

• Marketing de mídia social em várias plataformas
• Parcerias de influenciadores
• Campanhas de marketing por email

Experiência do cliente e previsão de tendências

Tilly dedica recursos significativos à análise de tendências e envolvimento do cliente:

Métrica	Valor
Membros do programa de fidelidade do cliente	1,2 milhão
Pesquisas anuais de clientes conduzidas	4
Projeto de produto iterações por ano	6-8

Tilly's, Inc. (TLYS) - Modelo de negócios: Recursos -chave

Rede de lojas de varejo físico

Até o ano fiscal de 2023, a Tilly's opera 231 lojas de varejo em 19 estados nos Estados Unidos. Armazenamento de armazenamento por tipo:

Tipo de loja	Número de locais
Lojas tradicionais de Tilly	211
RSQ Concept Stores	20

Plataforma de vendas on -line

Métricas de canal de vendas digitais para o ano fiscal de 2023:

• Site de comércio eletrônico: Tillys.com
• Vendas on -line totais: US $ 185,3 milhões
• Porcentagem de vendas on -line da receita total: 35,4%
• Tráfego móvel: 70% das visitas online

Reconhecimento da marca

Alvo demográfico e posicionamento da marca:

Demográfico	Detalhes
Faixa etária primária	13-24 anos
Penetração de mercado	Forte presença no varejo de estilo de vida adolescente e jovem adulto

Inventário de produtos

Redução da categoria de produto para o ano fiscal de 2023:

Categoria	Porcentagem de vendas
Vestuário	62%
Calçados	22%
Acessórios	16%

Equipe de gerenciamento

Principais detalhes da liderança:

• Total de membros da equipe executiva: 5
• Possuir médio no setor de varejo: mais de 15 anos
• As posições de liderança incluem CEO, CFO, diretor de merchandising

Recursos financeiros

Métricas financeiras para o ano fiscal de 2023:

Métrica	Quantia
Receita total	US $ 523,4 milhões
Caixa e equivalentes de dinheiro	US $ 72,6 milhões
Capital de giro	US $ 141,3 milhões

Tilly's, Inc. (TLYS) - Modelo de negócios: proposições de valor

Roupas e acessórios na moda e focados em jovens

A partir do quarto trimestre de 2023, a Tilly's relatou um mix de produtos direcionando 13-24 Demografia Idade com a seguinte quebra de mercadorias:

Categoria de produto	Porcentagem de receita
Camisetas gráficas	28.5%
Jeans/calças	22.3%
Acessórios	15.7%
Roupas externas	18.2%
Calçados	15.3%

Moda acessível para adolescentes e jovens adultos

Preços médios para as principais categorias de produtos:

• T-shirts: US $ 24,50
• Jeans: $ 49,95
• Hoodies: US $ 54,50
• Tênis: US $ 69,90

Mista de mercadorias de marca e marca própria

Composição de mercadorias em 2023:

Tipo de mercadoria	Percentagem
Marcas nacionais	65.4%
Marca própria	34.6%

Estilo de vida com curadoria e coleções inspiradas em surf/skate

Parcerias de marca e coleções destaques em 2023:

• Vans: 12,3% do total de vendas
• Billabong: 8,7% do total de vendas
• Quiksilver: 7,5% do total de vendas
• Nike: 11,2% do total de vendas

Experiência de compra omnichannel

Distribuição de canais de vendas para 2023:

Canal de vendas	Porcentagem de receita
Lojas de varejo	62.5%
Comércio eletrônico	37.5%

Tilly's, Inc. (Tlys) - Modelo de Negócios: Relacionamentos do Cliente

Engajamento da mídia social

A partir de 2024, a Tilly's mantém a presença ativa das mídias sociais entre as plataformas:

Plataforma	Contagem de seguidores	Taxa de engajamento
Instagram	387.000 seguidores	3.2%
Tiktok	156.000 seguidores	2.8%
Facebook	212.000 seguidores	1.9%

Programa de fidelidade

Recursos do Programa de Fidelidade Insider de Tilly:

• 5% de reembolso nas compras
• Recompensas trimestrais totalizando US $ 47.500 distribuídos
• 36.750 membros de fidelidade ativa
• Gastes médios de membro: US $ 385 anualmente

Comunicações de marketing personalizadas

Canal de comunicação	Alcance mensal	Taxa de conversão
Marketing por e -mail	275.000 assinantes	4.3%
Marketing de SMS	98.000 assinantes	3.7%

Atendimento ao cliente na loja

Métricas de atendimento ao cliente para locais de varejo físico:

• Tempo médio de interação do cliente: 12,5 minutos
• Classificação de satisfação do cliente: 4.2/5
• Horário de treinamento da equipe: 36 horas por ano por funcionário

Interação do aplicativo móvel

Métrica de aplicativo móvel	2024 dados
Downloads de aplicativos totais	247,000
Usuários ativos mensais	89,500
Duração média da sessão	7,3 minutos
Porcentagem de vendas móveis	22,6% da receita total

Tilly's, Inc. (Tlys) - Modelo de Negócios: Canais

Lojas de varejo físico

A partir do quarto trimestre de 2023, a Tilly's opera 231 lojas de varejo em 33 estados nos Estados Unidos. A pegada da loja da empresa cobre aproximadamente 1.337.000 pés quadrados totais de espaço de varejo.

Métrica da loja	Quantidade
Número total de lojas	231
Estados cobertos	33
Espaço total de varejo	1.337.000 pés quadrados

Site de comércio eletrônico

Tillys.com gerou US $ 186,7 milhões em vendas on -line durante o ano fiscal de 2023, representando 38,4% da receita total da empresa.

Aplicativo de compra móvel

O aplicativo móvel da Tilly foi baixado mais de 500.000 vezes em plataformas iOS e Android, com uma classificação média de usuário de 4,2 em 5 estrelas.

Plataformas de mídia social

• Seguidores do Instagram: 1,2 milhão
• TIKTOK seguidores: 275.000
• Seguidores do Facebook: 650.000

Vendas de catálogo

As vendas de catálogo representam menos de 2% da receita total da empresa, com aproximadamente 125.000 catálogos distribuídos anualmente.

Canal	Contribuição da receita
Lojas físicas	61.6%
Comércio eletrônico	38.4%
Vendas de catálogo	Menos de 2%

Tilly's, Inc. (TLYS) - Modelo de negócios: segmentos de clientes

Adolescentes (13 a 19 anos)

A partir do quarto trimestre 2023, o segmento de clientes principal de Tilly compreende adolescentes com as seguintes características:

Faixa etária	Porcentagem de base de clientes	Gastos médios anuais
13-16 anos	22%	$275
17-19 anos	28%	$385

Jovens adultos (20 a 30 anos)

Redução demográfica para segmento de jovens adultos:

• Representação total do cliente: 35% da base de clientes de Tilly
• Poder de compra média anual: US $ 450
• O maior envolvimento através de plataformas digitais

Consumidores conscientes da moda

Métricas específicas para segmentos para clientes orientados para a moda:

Categoria	Percentagem	Valor médio da transação
Compradores focados em tendências	18%	$325
Consumidores de marca de marca	12%	$275

Entusiastas da cultura de surf e skate

Análise especializada para segmentos de clientes:

• Representação total do segmento: 15% da base de clientes
• Gastos anuais médios: US $ 520
• Faixa de idade primária: 16 a 25 anos

Compradores sensíveis ao preço

Características do segmento de clientes orientadas a preços:

Sensibilidade com desconto	Porcentagem de clientes	Expectativa média de desconto
Alto	25%	30-40% de desconto
Moderado	20%	20-30% de desconto

Tilly's, Inc. (TLYS) - Modelo de negócios: estrutura de custos

Aluguel de lojas e operações da loja de varejo

Até o ano fiscal de 2023, as 237 lojas de varejo de Tilly operavam em 13 estados. Os custos totais de ocupação foram de US $ 54,3 milhões no ano.

Categoria de custo	Valor anual
Aluguel da loja	US $ 42,1 milhões
Utilitários	US $ 6,2 milhões
Manutenção	US $ 6,0 milhões

Compras de inventário

Os custos de compras de estoque para o Tilly's no ano fiscal de 2023 totalizaram US $ 185,6 milhões.

• Custo dos bens vendidos (engrenagens): US $ 185,6 milhões
• Taxa de rotatividade de inventário: 3,2x
• Valor médio de inventário: US $ 58,0 milhões

Salários dos funcionários

As despesas com o trabalho total do Tilly no ano fiscal de 2023 foram de US $ 98,7 milhões.

Categoria de funcionários	Despesas salariais anuais
Funcionários da loja de varejo	US $ 76,3 milhões
Funcionários corporativos	US $ 22,4 milhões

Despesas de marketing e publicidade

As despesas de marketing para o ano fiscal de 2023 totalizaram US $ 12,5 milhões.

• Marketing Digital: US $ 7,2 milhões
• Publicidade tradicional: US $ 3,8 milhões
• Eventos promocionais: US $ 1,5 milhão

Infraestrutura de tecnologia e comércio eletrônico

Os investimentos em tecnologia para o ano fiscal de 2023 foram de US $ 8,9 milhões.

Categoria de custo de tecnologia	Valor anual
Plataforma de comércio eletrônico	US $ 4,2 milhões
Infraestrutura de TI	US $ 3,1 milhões
Software e sistemas	US $ 1,6 milhão

Tilly's, Inc. (TLYS) - Modelo de negócios: fluxos de receita

Vendas de roupas e acessórios

Para o ano fiscal de 2023, a Tilly relatou vendas líquidas totais de US $ 571,3 milhões. Roupas e acessórios compreendiam uma parcela significativa desta receita.

Categoria de produto	Contribuição da receita
Roupas	US $ 392,4 milhões
Acessórios	US $ 89,6 milhões

Vendas de calçados

Os calçados representavam um fluxo de receita importante para a Tilly's, gerando US $ 134,2 milhões em vendas para o ano fiscal de 2023.

Mercadoria de marca própria

A mercadoria de marca própria contribuiu com US $ 145,5 milhões para a receita total de Tilly em 2023.

• As marcas de marca própria representavam 25,5% do total de vendas líquidas
• A margem bruta para mercadorias de marca própria foi de aproximadamente 40,3%

Varejo online e na loja

Para o ano fiscal de 2023, o canal de vendas digital de Tilly gerou US $ 178,6 milhões em receita.

Canal de vendas	Receita	Porcentagem de vendas totais
Varejo na loja	US $ 392,7 milhões	68.7%
Varejo online	US $ 178,6 milhões	31.3%

Coleções sazonais e itens de tendência

Coleções sazonais e mercadorias de tendências geraram US $ 97,3 milhões em receita para o ano fiscal de 2023.

• Vendas de coleta de verão: US $ 42,6 milhões
• Vendas de coleta de inverno: US $ 38,7 milhões
• Itens de edição e tendência de edição limitada: US $ 16 milhões

Tilly's, Inc. (TLYS) - Canvas Business Model: Value Propositions

You're looking at how Tilly's, Inc. is positioning itself to win with the teen and young adult crowd as of late 2025. The core value is definitely in the product mix they curate.

Tilly's, Inc. offers an extensive, curated assortment that mixes iconic global names with emerging and proprietary brands. Management is actively working to shift this mix, planning to increase proprietary brand sales penetration to approximately 40% on an annualized basis, which represents an increase of approximately 3 points from the current year-to-date penetration. This move is designed to improve product exclusivity and control over logistics and pricing.

The authentic connection to youth culture, fashion, and active/social lifestyles is maintained by leaning into relevant platforms. They are seeing rapid growth in sales from their TikTok shop, which launched back in March. Furthermore, they recently completed an extensive consumer segmentation survey to better tailor assortments and marketing efforts for their core demographic.

The omnichannel shopping experience is a key delivery channel, balancing physical presence with digital reach. As of the end of the third quarter of fiscal 2025, Tilly's, Inc. operated 230 total stores, reflecting a net reduction of 16 stores or 6.5% compared to the prior year. Still, physical stores remain dominant, representing 79.0% of total net sales, up from 77.6% last year. E-commerce sales were $29.3 million, a decrease of 9.0%.

This curated offering positions Tilly's, Inc. as a destination retailer for self-expression in the teen and young adult market. The effectiveness of their strategy is showing up in comparable sales, which increased by 2.0% in Q3 2025, marking the first positive quarterly comparable net sales result since the fourth quarter of fiscal 2021.

Financially, the focus on better inventory management and pricing is yielding results directly in the cost of goods sold. Product margins improved by 390 basis points in Q3 2025, driven by higher initial markups and lower markdowns. The resulting gross margin was 30.5% of net sales, a significant jump from 25.9% in the third quarter of fiscal 2024.

Here's a quick look at how the Q3 2025 performance metrics tie into the execution of these value propositions:

Metric Category	Key Metric	Fiscal Q3 2025 Result	Comparison/Target
Product Mix Value	Proprietary Brand Penetration Goal	40% (Annualized Target)	Up approx. 3 points YTD
Financial Impact	Product Margin Improvement	390 basis points	Q3 2025 Improvement
Omnichannel Reach	Total Store Count	230 stores	Down 16 stores Y/Y
Omnichannel Sales Mix	Physical Store Net Sales %	79.0%	Up from 77.6% last year
Customer Engagement	Comparable Net Sales Growth	2.0%	First positive comp since Q4 2021

The total net sales for the quarter were $139.6 million. Finance: draft 13-week cash view by Friday.

Tilly's, Inc. (TLYS) - Canvas Business Model: Customer Relationships

Building brand affinity involves targeted outreach to the core demographic. Tilly's, Inc. executed a brand ambassador campaign featuring Loren Gray and held an exclusive pop-up event with Malibu Skyye founder and CEO, Tia McKenzie, which was live-streamed via TikTok.

Direct interaction occurs within the physical footprint, which is designed as a larger store format offering an extensive assortment. At the end of the third quarter of fiscal 2025, the store count was anticipated to reach 223 by year-end, representing a net decrease of 17 stores or 7.1% from fiscal 2024. For the third quarter of fiscal 2025, comparable net sales from physical stores increased by 5.3%. Physical stores accounted for 79% of total net sales in Q3 2025, up from 77.6% the prior year.

Digital engagement is driven by specific channels and data-informed strategies. The company leaned heavily into social commerce, seeing rapid growth in sales from its TikTok Shop, which launched in March 2025. The overall comparable net sales growth for Q3 2025 was 2%. For Q3 2025, the conversion rate, average sale value, and transaction count all saw an increase of 6% to 7%, while traffic remained roughly flat.

The following table summarizes key channel performance metrics for recent quarters:

Metric	Q3 Fiscal 2025	Q2 Fiscal 2025	Q1 Fiscal 2025
Total Net Sales	$139.6 million	$151.3 million	$107.6 million
E-commerce Net Sales Change (YoY)	Decreased by 9%	Decreased by 6.6%	Decreased by 5.8%
E-commerce % of Total Net Sales	21%	18.9%	20.2%

Loyalty and personalization efforts are informed by recent data collection. Tilly's, Inc. recently completed an extensive consumer segmentation survey that defined 6 primary consumer profiles driving a substantial majority of the business.

Self-service is facilitated through the e-commerce platform, www.tillys.com. In Q3 2025, e-commerce net sales represented 21% of total net sales, compared to 22.4% in the prior year period. For the first quarter of fiscal 2025, e-commerce net sales were $21.7 million.

Tilly's, Inc. (TLYS) - Canvas Business Model: Channels

You're looking at how Tilly's, Inc. gets its product into the hands of its young adult and teen customer base as of late 2025. The channel strategy is a mix of established brick-and-mortar presence and digital outreach, though the balance is shifting based on recent performance.

Physical retail stores remain the primary revenue driver, but the footprint is actively being managed for profitability. As of November 1, 2025, Tilly's, Inc. operated 230 total stores across 33 US states. This represented a year-over-year reduction of 16 stores or 6.5% compared to the end of the third quarter last year. The company expects to close another seven stores near the end of the fourth quarter, aiming to finish fiscal 2025 with 223 locations. Despite the reduced count, physical stores generated 79.0% of total net sales for the third quarter of fiscal 2025. Comparable store net sales for that same 13-week period showed a positive increase of 5.3%.

The e-commerce website, tillys.com, serves as the secondary, yet crucial, point of sale. For the third quarter of fiscal 2025, net sales from e-commerce were $29.3 million. This digital channel represented 21.0% of total net sales for the quarter, a slight decrease from 22.4% in the prior year period. The comparable net sales trend for e-commerce was negative, showing a 9% decrease for the 13-week period ended November 1, 2025. This online dip was largely due to a 51.0% reduction in clearance selling compared to the prior year's third quarter.

Here's a quick look at how the two main channels stacked up in Q3 2025:

Metric	Physical Stores	E-commerce Website
Q3 2025 Net Sales (Millions USD)	$110.3 million	$29.3 million
Q3 2025 Sales as % of Total Sales	79.0%	21.0%
Q3 2025 Comparable Net Sales Change	+5.3%	-9%
Store Count (as of 11/1/2025)	230 locations	N/A

Social commerce is an area of active investment to drive future engagement. Tilly's, Inc. recently held an exclusive pop-up event with Malibu Skyye that was live streamed via TikTok. Furthermore, in late October, the company launched a brand ambassador campaign featuring TikTok content creator Loren Gray. While the outline specifies direct sales through a recently launched TikTok Shop, the latest reported figures do not isolate its specific sales contribution from the overall e-commerce channel.

The company is also working on its mobile application and other digital marketing platforms to support its omnichannel approach. Specific financial contributions or user statistics for the mobile application were not detailed in the Q3 2025 operating results release.

You should track the Q4 comparable sales growth, which was reported at 6.7% through December 2, 2025, to see if the digital and social momentum is accelerating into year-end.

Tilly's, Inc. (TLYS) - Canvas Business Model: Customer Segments

You're looking at the core audience for Tilly's, Inc. (TLYS) as of late 2025. This retailer has a very specific focus, targeting the youth market with an active lifestyle bent. They define their core customer base as:

• Young men, young women, boys, and girls, squarely focused on the teen and young adult demographic.
• Consumers whose interests align with surf, skate, streetwear, and active/outdoor lifestyles.
• Shoppers who are value-conscious but still demand a mix of well-known brands and Tilly's own merchandise.

To better serve this group, Tilly's, Inc. recently finished an extensive consumer segmentation survey. This work is key because management knows they serve a variety of consumer types, not just one monolithic group. The goal now is operationalizing this new knowledge into how they buy and market product.

Here's the quick math on where these customers are shopping as of the third quarter of fiscal 2025:

Sales Channel	Q3 2025 Net Sales Percentage	Q3 2025 Net Sales Amount (Approx.)	Year-over-Year Change (Sales)
Physical Stores	79%	$110.3 million	Decreased by 0.9%
E-commerce	21.0%	$29.3 million	Decreased by 9.0%
Total Net Sales	100%	$139.6 million	Decreased by 2.7%

The refinement of the customer segments is directly tied to the merchandise strategy. Tilly's, Inc. is pushing its own labels to capture better profitability, which speaks directly to the value-conscious shopper looking for a good deal on relevant styles. They have successfully increased the sales penetration of their proprietary brands, aiming for approximately 40% on an annualized basis. This mix helps them manage margins, which improved by 460 basis points in Q3 2025 compared to the prior year.

The new internal survey defined specific groups that drive the business. You should track how these profiles translate into future sales performance. Management is focused on building greater customer affinity by solidifying their position at the intersection of youth culture, fashion, and music.

• The survey defined 6 primary consumer profiles.
• These profiles drive a substantial majority of the business.
• The company operates 230 stores as of the end of Q3 2025.
• The average net sales per physical store for Q3 2025 was $478,000.

The goal is to use these insights to ensure their assortment choices speak clearly to these specific consumer profiles to build greater following for Tilly's over longer periods of time. If onboarding this new segmentation proves difficult, execution risk rises, especially as they navigate a challenging macro environment where Q4 2025 revenue guidance is projected to be between $146 million and $151 million.

Finance: draft 13-week cash view by Friday.

Tilly's, Inc. (TLYS) - Canvas Business Model: Cost Structure

You're looking at the cost side of Tilly's, Inc. (TLYS) operations as of late 2025, focusing on the figures reported through the third quarter of fiscal 2025. The cost structure reflects a clear effort to rationalize the physical footprint while managing inventory tightly.

High fixed costs from store occupancy and lease obligations remain a structural factor, though management is actively reducing this exposure. Occupancy costs, which include rent, maintenance, and property taxes, decreased by $4.3 million in the third quarter of fiscal 2025 compared to the prior year's third quarter. This reduction is directly tied to operating 16 fewer net stores compared to the previous year. This ongoing footprint rationalization is a key lever for managing these fixed overheads.

Selling, General, and Administrative (SG&A) expenses show significant year-over-year improvement. For the third quarter of fiscal 2025, SG&A expenses were reported at $44.5 million, which was a decrease of $6.7 million compared to $51.3 million in the third quarter of fiscal 2024. This reduction reflects successful cost control across several areas.

The Cost of Goods Sold (COGS) component, reflected in the Gross Profit, is showing positive movement due to better inventory management. Gross profit, which includes buying, distribution, and occupancy costs, reached $113.0 million, representing 28.4% of net sales for Q3 2025. This is an improvement from 26.4% of net sales in the third quarter of the previous year. Product margins specifically improved due to the combination of higher initial markups and lower markdowns, a direct result of operating with reduced, more current inventory.

Labor costs are a major component of the controllable SG&A. The reduction in SG&A for Q3 2025 was significantly driven by lower store payroll and related benefits, which decreased by $1.5 million year-over-year for the quarter. Similarly, e-commerce fulfillment labor costs also saw a reduction of $1.5 million in the third quarter compared to last year. It's defintely clear that labor management is a focus area.

You can see a breakdown of these key cost metrics below:

Cost Element	Fiscal 2025 Q3 Amount/Metric	Comparison/Context
SG&A Expenses	$44.5 million	Represents a $6.7 million decrease versus Q3 2024 ($51.3 million)
Gross Profit Margin	28.4% of net sales	Improved from 26.4% of net sales in Q3 2024
Occupancy Cost Change (Q3)	Decrease of $4.3 million	Due to operating 16 fewer net stores
Store Payroll & Benefits Change (Q3)	Decrease of $1.5 million	A primary driver of SG&A reduction
E-commerce Fulfillment Labor Change (Q3)	Decrease of $1.5 million	A primary driver of SG&A reduction
Year-to-Date Capital Expenditures	$3.4 million	As of the end of Q3 2025
Year-to-Date Capital Expenditures	$2.1 million	As of the end of Q2 2025

The company is managing its capital deployment conservatively. Total year-to-date capital expenditures through the end of the second quarter of fiscal 2025 were $2.1 million, which was lower than the $4.6 million spent in the same period last year. By the end of the third quarter, year-to-date CapEx had risen to $3.4 million compared to $6.7 million at the end of Q3 2024.

• The cost structure is actively being streamlined by reducing the physical store base.
• Inventory management is directly impacting COGS favorably through better markups.
• SG&A is being controlled through reductions in both store and e-commerce labor.
• The company maintained a debt-free status as of November 1, 2025, meaning interest expense on borrowings is not a current cost factor.

Finance: draft 13-week cash view by Friday.

Tilly's, Inc. (TLYS) - Canvas Business Model: Revenue Streams

You're looking at how Tilly's, Inc. (TLYS) brings in its money as of late 2025, focusing on the most recent hard numbers from the third quarter.

The total net sales for Tilly's, Inc. (TLYS) in the third quarter of fiscal 2025 landed at $139.6 million. This figure represents a 2.7% decrease compared to the third quarter of the prior year.

Here's the quick math on how those sales channels broke down for the thirteen weeks ended November 1, 2025:

Revenue Channel	Net Sales Amount (Q3 2025)	Percentage of Total Sales (Q3 2025)
Physical Stores	$110.3 million	79.0%
E-commerce	$29.3 million	21.0%

The physical store channel remains the dominant source of revenue, bringing in $110.3 million, which accounted for 79.0% of the total. The e-commerce segment contributed $29.3 million, making up the remaining 21.0% of net sales for the period.

A key strategic focus for Tilly's, Inc. (TLYS) is shifting the mix toward higher-margin proprietary (private label) brands. Management has stated a goal to increase the sales penetration of these internal brands to approximately 40% on an annualized basis.

The remaining portion of the revenue stream is comprised of sales from third-party branded apparel, footwear, and accessories. These are the well-known labels that Tilly's, Inc. (TLYS) carries, which are sold alongside the growing proprietary offerings.

You can see the core revenue generation points below:

• Net sales from physical stores: $110.3 million in Q3 2025.
• Net sales from e-commerce: $29.3 million in Q3 2025.
• Q3 2025 total net sales: $139.6 million.
• Targeted sales penetration for proprietary brands: approximately 40% annualized.

Finance: draft 13-week cash view by Friday.