Q1 2020 Tilly's Inc Earnings Call
Highlights from today's Tilly's earnings call:
- 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
- E-commerce responded very well with a 54.2% increase in net sales for the quarter, accelerating significantly following our store closures
- E-commerce net sales increased by 9.6% in February, then by 49.3% in March, and by 90% in April. However, these increases in e-commerce sales were not nearly enough to make up for the loss of store sales in the back half of the quarter.
- With regard to store leases, as we believe this is the case with many other similar retailers in order to protect our liquidity in this completely unpredictable environment, we elected to withhold payment of our contractual store lease obligation for April and May given that we could not safely operate our stores as originally intended when the respective leases were signed and we did not know when our stores would be able to reopen
- Our normal cash burn for all of the contractual store lease obligations is nearly $7 million per month.
Read the transcript or listen to the entire call below.