Tilly's, Inc. · NYSE:TLYS
Tilly's — ICR Conference 2020
16 slides from Tilly's's conference presentation, Jan 13, 2020
Slide 1: ICR Investor Presentation January 2020
ICR Investor Presentation January 2020 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation, and responses to certain questions about this presentation, will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, particularly with regard to future financial and operating expectations, business p
Slide 3: Tillys at a Glance
Tillys at a Glance • Leading specialty retailer offering apparel, footwear and accessories for young adults, teens and children • Unparalleled blend of over 400 iconic global, emerging, and proprietary brands • 240 stores in 33 states, both in-mall and off-mall, averaging ~7,500 SF • Approx. 15 new
Slide 4: Evolution of Tillys from IPO to Entering a New Phase of Growth
Evolution of Tillys from IPO to Entering a New Phase of Growth IPO and Expansion Stabilize, Invest for Future of Tillys (2012 – 2015) Growth (2016 – 2017) (2018 – 2020+) • Significant store expansion • Paused store growth to address • Disciplined approach to store following IPO, mostly to new under-
Slide 5: Destination Retailer with a Unique Store Experience and a Broad and Differentiated Assortment
Destination Retailer with a Unique Store Experience and a Broad and Differentiated Assortment • Over 400 third-party lifestyle brands in a given year with a variety of styles, colors, sizes and price points • ~25% of our net sales comes from our own brands, supplemented by exclusive offerings from t
Slide 6: Flexible Real Estate Strategy Across Real Estate Venues and Geographies
Flexible Real Estate Strategy Across Real Estate Venues and Geographies • Stores located in malls, power centers, neighborhood and lifestyle centers, outlet centers and street-front locations • Store locations in 86 markets in 33 states • Began as an off-mall concept in 1982 • Strategy of clustering
Slide 7: Opportunity for New Stores
Opportunity for New Stores • New stores typically payback within approximately 2 to 2.5 years on cash basis • Natural lifecycle of a store creates comp and operating efficiency opportunities beyond year one • 1094144_1.wor (NY008SR4) Opened 14 new storesTBU in FY19, anticipate approximately 15 new s
Slide 8: Continue to Grow E-com and Leverage Omni-Channel Capabilities
Continue to Grow E-com and Leverage Omni-Channel Capabilities • Opportunity exists to continue to grow current ~$100M E-commerce Revenue as Percentage e-com business from its current 15% of total net sales of Total Revenue (1) to beyond 20-25% of total net sales. Urban Outfitters 40% • Create seamle
Slide 9: Our Core Customers
Our Core Customers • Pre-teens, teens and young adults, both male and female • Active, connected, creative and adventurous • Passionate about an active lifestyle, including sports, music, art and fashion • Highly engaged on social media channels 9
Slide 10: Constantly Evolving Merchandise Mix
Constantly Evolving Merchandise Mix • Keep merchandise mix current with emerging brands and new merchandise from established brands • Exclusive styles from popular brands that are limited or not offered at other retailers • Analyze and adjust to performance trends within different markets • Ship pro
Slide 11: New Chief Merchandising Officer Drives New Merchandising Priorities for FY2020
New Chief Merchandising Officer Drives New Merchandising Priorities for FY2020 • Tricia Smith joined Tillys at the end of September 2019 following a 25-year career at Nordstrom leading their Womens, Young Contemporary, Designer and Specialized Apparel efforts. Her early reads on some of our future o
Slide 12: Multi-pronged Marketing Approach to Drive Traffic and Customer Engagement
Multi-pronged Marketing Approach to Drive Traffic and Customer Engagement Leverage proprietary customer database to further engage customers and drive traffic • Partner with social media stars and influencers to drive brand awareness • Promote in-store events (prior to and post-t- event) TBUT • Incr
Slide 13: Significant Investments Across Stores, E-commerce, Systems and Distribution / Fulfillment
Significant Investments Across Stores, E-commerce, Systems and Distribution / Fulfillment Ability to capitalize on recent investments to drive traffic to our stores and website • Remodeled or refreshed ~90% of our 240 stores within the last 3 years Stores • Limited store capex requirements goingTBU
Slide 14: Driving Comparable Store Sales Growth
Driving Comparable Store Sales Growth Entering Q4 of FY2019, the Company produced 14 consecutive quarters of flat to positive comparable store sales growth. 14
Slide 15: Increase Operating Margins
Increase Operating Margins Continued opportunity to increase operating margins through scale efficiencies driven by comparable store sales growth combined with continuous process improvements 9 Largely fixed occupancy costs Leverage Fixed Costs through 9 Favorable buying costs due to scale Top-Line
Slide 16: Why Invest in TLYS?
Why Invest in TLYS? Driving Store Traffic and Comparable Store Sales Growth Growing E-com and Leveraging Omni-Channel Capabilities Opening New Stores Driving Brand Awareness Opportunity to Improve Operating Margins 16