SCHEDULE 13D/A: Fund 1 Investments Increases Economic Exposure to Tilly's, Inc. Through New Swap Agreements

Fund 1 Investments, LLC has filed an Amendment No. 16 to its Schedule 13D, disclosing increased economic exposure to Tilly's, Inc. Class A Common Stock through new cash-settled swap agreements, bringing its total notional exposure to approximately 9.09%.

Summary

• Fund 1 Investments, LLC filed Amendment No. 16 to its Schedule 13D regarding its stake in Tilly's, Inc. Class A Common Stock.
• The reporting person beneficially owns 8,174,879 shares, representing 35.8% of the outstanding Class A Common Stock.
• Between March 6, 2025, and March 14, 2025, Fund 1 Investments entered into new cash-settled swap agreements representing economic exposure to an additional 317,664 notional shares, or approximately 1.39% of outstanding shares.
• The total economic exposure from all cash-settled swap agreements held by Fund 1 Investments, LLC now stands at 2,077,013 notional shares, representing approximately 9.09% of the outstanding Class A Common Stock.
• These swap agreements provide economic results comparable to ownership but do not grant voting or dispositive power over the underlying shares.
• No transactions in the Company's Class A Common Stock were effected by the Reporting Persons during the sixty-day period prior to this filing.
• The percentage calculations are based on 22,845,799 shares of Class A Common Stock outstanding as of December 4, 2024, as stated in the Issuer's Quarterly Report on Form 10-Q for the period ended November 2, 2024.

Sentiment

Score: 6

Explanation: The filing indicates continued and increased economic interest from a significant investor, which is generally positive. However, the use of cash-settled swaps rather than direct share purchases for the new exposure might be viewed with slight neutrality as it doesn't confer voting rights.

Positives

• Increased economic exposure by Fund 1 Investments, LLC could signal continued confidence in Tilly's, Inc.

Negatives

• The use of cash-settled swaps indicates an economic interest without direct voting control, which might be viewed differently by some investors compared to direct share ownership.

Future Outlook

The document does not contain any forward-looking statements or guidance regarding the Issuer's future performance or strategic direction.

Industry Context

This filing reflects an investor's continued interest and increased economic exposure in Tilly's, Inc., a specialty retailer. It does not provide broader industry trends or context beyond the specific investment activity.

Stakeholder Impact

• Shareholders: The increased economic exposure by a significant investor could be perceived as a vote of confidence, potentially influencing market sentiment.
• Employees, Customers, Suppliers, Creditors: The filing does not contain information directly impacting these stakeholders.

Next Steps

• The document does not explicitly mention future actions or milestones by the Issuer or the Reporting Person, beyond the ongoing nature of the swap agreements.

Key Dates

Keywords

Tilly's Inc., TLYS, Schedule 13D, Beneficial Ownership, Cash-Settled Swaps, Fund 1 Investments, SEC Filing, Retail, Apparel