SCHEDULE 13G/A: Divisar Capital Management Discloses 5.5% Passive Stake in Tilly's, Inc.

Divisar Capital Management LLC, along with its affiliates Divisar Partners QP, L.P. and Steven Baughman, has filed an amended Schedule 13G disclosing a passive beneficial ownership of 5.5% in Tilly's, Inc.'s Class A Common Stock as of December 31, 2024.

Summary

• Divisar Capital Management LLC, Divisar Partners QP, L.P., and Steven Baughman (collectively, 'Reporting Persons') have filed an Amendment No. 3 to Schedule 13G regarding their beneficial ownership of Tilly's, Inc. Class A Common Stock.
• As of December 31, 2024, Divisar Capital Management LLC and Steven Baughman each beneficially own 1,266,424 shares, representing 5.5% of the Class A Common Stock.
• Divisar Partners QP, L.P. beneficially owns 1,183,451 shares, representing 5.2% of the Class A Common Stock.
• The percentages are calculated based on 22,845,799 shares of Class A Common Stock outstanding as of December 4, 2024, as reported by Tilly's, Inc. in its Form 10-Q filed on December 6, 2024.
• The Reporting Persons hold shared voting and dispositive power over their respective reported shares.
• The filing certifies that the securities were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of Tilly's, Inc.

Sentiment

Score: 5

Explanation: The document is a factual, regulatory filing disclosing beneficial ownership and does not contain information that would inherently indicate a positive or negative sentiment regarding the company's performance or prospects.

Future Outlook

This document does not provide any forward-looking statements or guidance regarding Tilly's, Inc.'s future outlook.

Management Comments

• Steven Baughman, CEO of Divisar Capital Management LLC, certified that, to the best of his knowledge and belief, the securities were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer, and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under Rule 240.14a-11.

Industry Context

This filing is a routine disclosure of beneficial ownership and does not provide specific analysis of broader industry trends or competitors within the retail apparel sector.

Stakeholder Impact

• Shareholders: The filing confirms a significant, passive ownership stake by Divisar Capital Management and its affiliates, indicating continued institutional interest in Tilly's, Inc. stock.

Key Dates

Keywords

Tilly's Inc., Divisar Capital Management, Steven Baughman, Schedule 13G, Beneficial Ownership, Class A Common Stock, Retail, Apparel, Investment Adviser