Young adult apparel retailer Tilly’s (NYSE:TLYS) will be reporting earnings tomorrow after the bell. Here’s what to expect.

Tilly's missed analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $162.9 million, up 1.8% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EPS estimates.

Is Tilly's a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Tilly’s revenue to decline 15.4% year on year to $140.8 million, a further deceleration from the 6.4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.32 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tilly's has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Tilly’s peers in the apparel retailer segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Urban Outfitters delivered year-on-year revenue growth of 6.3%, beating analysts’ expectations by 1.8%, and Gap reported revenues up 1.6%, topping estimates by 0.6%. Urban Outfitters traded up 18.2% following the results while Gap was also up 12.7%.

Read our full analysis of Urban Outfitters’s results here and Gap’s results here.

There has been positive sentiment among investors in the apparel retailer segment, with share prices up 7.5% on average over the last month. Tilly's is up 5.5% during the same time and is heading into earnings with an average analyst price target of $5.50 (compared to the current share price of $4.44).

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