Tillys is a specialty retailer selling casual apparel, footwear, accessories, and hardgoods to teens and young adults, with a focus on surf, skate, and streetwear culture. Tillys operates 223 stores across 33 states and sells online through Tillys.com and a mobile app, with e-commerce representing roughly 22% of total net sales. The merchandise mix combines well-known third-party brands like Nike, Vans, and Levi's with Tillys' own proprietary labels. Proprietary brands now account for roughly 37% of net sales, up from 32% in fiscal 2023, led by RSQ (denim and apparel, 26% of net sales) and Full Tilt (7%), with management targeting roughly 40% proprietary penetration over time. Proprietary brands carry higher margins and give Tillys more control over pricing and supply chain. Tillys makes money on product margin, and profitability is heavily tied to comparable store sales growth, given largely fixed occupancy and overhead costs. Roughly 40% of stores are in California, creating outsized exposure to state minimum wage increases. Tillys is highly seasonal, with Q4 and back-to-school the strongest periods. After closing 21 stores in fiscal 2025 and enduring several years of declining comps, Tillys is pivoting toward growth — planning to open four to six new stores in fiscal 2026, deploying AI-driven replenishment and price optimization tools, and expanding its e-commerce presence including through TikTok Shop.