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 Co-Founder, Executive Chairman of the Board of Directors, 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) income for fiscal years 2024, 2023 and 2022 were as follows (in thousands):


	Fiscal Year Ended
	February 1, 2025		February 3, 2024		January 28, 2023
Net sales	$	569,453	$	623,083	$	672,280
Product COGS (1)	268,985		303,830		317,785
Occupancy (2)	101,002		103,942		99,626
Other COGS (3)	49,769		49,654		52,121
Gross profit	149,697		165,657		202,748
Store payroll	77,292		77,172		76,096
Marketing	23,996		24,407		23,157
Other selling costs (4)	38,900		37,697		39,918
Office costs (5)	59,358		57,363		52,390
Operating (loss) income	(49,849)		(30,982)		11,187
Other income, net	3,837		5,199		1,980
Income tax expense	217		8,709		3,490
Net (loss) income	$	(46,229)	$	(34,492)	$	9,677

(1) Product COGS consists of branded and private label merchandise costs, including design, sourcing, and inbound freight costs.

(2) Occupancy consists of store operating lease charges and depreciation.

(3) Other COGS consists of buying, and distribution costs, including but not limited to outbound shipping costs, buying and distribution payroll and related benefits, depreciation, and temporary labor.

(4) Other selling costs consists primarily of e-com fulfillment labor, credit card processing fees, store supplies and equipment, and other store services.

(5) Office costs consists primarily of corporate office payroll and related benefits, computer services, non-cash asset impairment charges, consulting and professional services, and insurance.

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

TILLY'S, INC. Segments Disclosure

About Segments Disclosures

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