Tilly's, Inc. (NYSE:TLYS) Q3 2019 Earnings Conference Call - Final Transcript

Dec 04, 2019 • 04:30 pm ET


Tilly's, Inc. (NYSE:TLYS) Q3 2019 Earnings Conference Call - Final Transcript


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Greetings and welcome to Tilly's Inc. Third Quarter 2019 Earnings Results Conference Call. [Operator Instructions]

I will now turn the conference over to your host, Gar Jackson, you may begin.

Gar Jackson

Good afternoon, and welcome to the Tilly's fiscal 2019 third quarter earnings call. Ed Thomas, President and CEO and Michael Henry, CFO, will discuss the Company's results and then host the Q&A session. For a copy of Tilly's earnings press release, please visit the Investor Relations section of the Company's website, at tillys.com. From the same section, shortly after the conclusion of the call, you will also be able to find a recorded replay of this call for the next 30 days.

Certain forward-looking statements will be made during this call that reflect Tilly's judgment and analysis only as of today December 4, 2019 and actual results may differ materially from current expectations based on a number of factors affecting Tilly's business. Accordingly, you should not place undue reliance on these forward-looking statements. For a more thorough discussion of the risks and uncertainties associated with any forward-looking statements, please see the disclaimer regarding forward-looking statements that is included in our fiscal 2019 third quarter earnings release, which was furnished for the SEC today on Form 8-K, as well as our other filings with the SEC referenced in that disclaimer.

Today's call will be limited to one hour and will include a Q&A session after our prepared remarks.

I'll now turn the call over to Ed.

Edmond Thomas

Thanks, Gar. Good afternoon, everyone and thank you for joining us today. We are very encouraged by our results during the third quarter, as well as during Thanksgiving weekend and Cyber Monday. Our 14th consecutive quarter of flat-to-positive comp sales in the third quarter included positive comps in each month of the quarter, both from stores and e-com and from each of our merchandising departments.

Our graphic tees business was particularly strong across all apparel departments. In women's, we introduced a new young contemporary proprietary brand, West of Melrose in a few targeted stores during the back-to-school season that will soon be introduced to most of our stores based on the positive initial customer response to this collection of both branded and proprietary product. West of Melrose is aimed at capturing the older teen and college-age young women, which we believe, will help extend the reach of our women's business.

Speaking of merchandising, I'd like to publicly welcome Tricia Smith to our Company. Tricia joined us at the end of September as our new Executive Vice President, Chief Merchandising Officer. She enjoyed a successful 25-year career at Nordstrom, most recently as Executive Vice President, General Merchandise Manager of Women's, Young Contemporary, Designer, and Specialized Apparel before deciding to join us. We are very excited to have someone of Tricia experience and background leading our merchandising efforts. We have been very impressed with Tricia's contributions thus far, and she is already beginning to identify opportunities for improvement. Under Tricia's leadership, we expect to see a more targeted