Tilly's, Inc. (NYSE:TLYS) Q3 2020 Earnings Conference Call - Final Transcript

Dec 03, 2020 • 04:30 pm ET

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Tilly's, Inc. (NYSE:TLYS) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Tilly's Incorporated Third Quarter 2020 Earnings Results Conference Call. [Operator Instructions] A brief question-and-answer session will follow the formal presentation. [Operator Instructions]

It is now my pleasure to introduce your host Gar Jackson. Thank you, Gar. You may begin.

Executive
Gar Jackson

Good afternoon, and welcome to the Tilly's fiscal 2020 third quarter earnings call. Ed Thomas, President and CEO; and Michael Henry, CFO, will discuss the company's results and then host a Q&A section. For a copy of Tilly's earnings press release, please visit the Investor Relations section of the company's website at tillys.com. From this 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 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 ongoing 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 third quarter earnings release, which was 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 I will include a Q&A session after our prepared remarks.

I will now turn the call over to Ed.

Executive
Edmond Thomas

Thanks, Gar. Good afternoon, everyone, and thank you for joining us today. We continue to adapt to this rapidly evolving COVID-19 environment and its impact on retail. We have gone from having our stores open for only 50% of total available operating days in the first quarter to 65% in the second quarter to 94% in the third quarter all with restrictions on operating hours and customer traffic upon store reopening's that began during the second quarter.

We entered the third quarter with 33 of our California indoor mall stores closed for the entire month of August, began reopening these stores throughout September and reopened the final eight stores on October 7. As we announced in early September, back to school days were meaningfully delayed, compared to prior years, which got us off to a very weak start to the quarter in August.

However, as schools announced their later reopening dates, our business began to rebound to a degree later in the quarter. Compared to the respective fiscal months of last year August net sales decreased 35%, but then September net sales increased 22%, and October net sales increased 10%. Altogether this resulted in a total net sales decrease of 9% for the third quarter, which we view as an encouraging result particularly in light of our August results in the significant number of stores that were closed for