Tilly's, Inc. (NYSE:TLYS) Q1 2020 Earnings Conference Call - Final Transcript

Jun 03, 2020 • 04:30 pm ET


Tilly's, Inc. (NYSE:TLYS) Q1 2020 Earnings Conference Call - Final Transcript


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Greetings. Welcome to Tilly's Incorporated First Quarter 2020 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 2020 first 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 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, June 3, 2020, and actual results may differ materially from current expectations based on various factors affecting Tilly's business including impacts of and the company's actions in response to the current COVID-19 pandemic.

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 2020 first quarter earnings release which is furnished to 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 now will turn the call over to Ed.

Edmond Thomas

Thanks, Gar. Good afternoon everyone and thank you for joining us today. First, we hope everyone listening and their families are well. We continue to be an unprecedented times due to the COVID-19 pandemic, which has had significant health, social and economic impacts throughout the world. I'll spend a significant portion of our time today updating you on how this pandemic has impacted our business to date.

Following my prepared remarks, I will turn the call over to Mike, who will go into more details about our financial results. As previously announced, we temporarily closed all 239 of our retail stores on March 18 and through the end of the first quarter in order to protect our employees and communities from the continuing spread of COVID-19.

We also shifted our corporate offices from -- to a work from home status and substantially closed our stores and distribution center. Driven by the temporary store closures, we experienced a 40.7% decrease in total net sales for the first quarter. Net sales in physical stores decreased by 57.5% for the first quarter due to being closed for the final 45 days of the 91 day quarter.

Comp sales in stores were up 1% in February, then down 23% during the period from March 1 through March 18, as the impact of the pandemic on our business and the retail industry in general meaningfully began. E-commerce responded very well with a 54.2% increase in net sales for the quarter,