Tilly's, Inc. · NYSE:TLYS
Tilly's — ICR Conference 2019
17 slides from Tilly's's conference presentation, Jan 14, 2019
Slide 1: ICR Investor Presentation January 2019
ICR Investor Presentation January 2019 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 • 229 stores in 33 states, both in-mall and off- mall, averaging ~7500 SF, including 4 RSQ-
Slide 4: 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 4
Slide 5: Destination Retailer with a Unique Store Experience and Broad 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 Diversified Category Mix • ~24% of our YTD Dec 2018 net sales has come from our own brands (v
Slide 6: Constantly Evolving Merchandise Mix
Constantly Evolving Merchandise Mix • Ship products to stores multiple times per week • Analyze and adjust to performance of different trends in different markets • Keep merchandise mix current with emerging brands and new merchandise from established brands • Special make-ups from popular brands th
Slide 7: Flexible Real Estate Strategy across Venues and Geographies
Flexible Real Estate Strategy across Real Estate Venues and Geographies • Stores located in malls, power centers, Store Location by Type neighborhood and lifestyle centers, outlet Outlet centers and street-front locations 7% • Store locations in 86 markets in 33 states • Began as an off-mall concept
Slide 8: 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- TBU event) SocialMed
Slide 9: Significant Investments Across Stores, E-commerce, Systems and Distribution
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 229 stores within the last 3 years Stores • Limited store capex requirements goingTBU
Slide 10: Evolution of Tillys from IPO to a New Phase of Growth
Evolution of Tillys from IPO to Entering a New Phase of Growth IPO and Expansion Stabilize and Invest for Growth Future of Tillys (2012 – 2015) (2016 – 2017) (2018+) • Significant store expansion, mostly • Paused store growth to address • Disciplined approach to store to new markets, following IPO u
Slide 11: Key Growth Drivers
Key Growth Drivers Drive Comparable Store Sales Grow E-com and Leverage Omni-Channel Capabilities Open New Stores Drive Brand Awareness Increase Operating Margins 11
Slide 12: Drive Comparable Store Sales
Drive Comparable Store Sales Leverage E-com and Increase Brand Awareness with Execute on Merchandising Strategy Business Investments Multi-Pronged Marketing Dynamic merchandise model Disciplined approach to new Continued distribution of store growth, clustering postcards, catalogs and email
Slide 13: Continue to Grow E-com and Leverage Omni-Channel Capabilities
Continue to Grow E-com and Leverage Omni-Channel Capabilities • Create seamless experience for customer to shop in-store or E-commerce Revenue as Percentage online of Total Revenue (1) • Leverage new mobile app and social media presence Urban • Increase investments in omni-channel capabilities: Outf
Slide 14: Open New Stores
Open New Stores • Opened 12 new stores in FY18, anticipate approximately 10-15 new stores in FY19 • Continue disciplined approach to store growth • Target existing markets with room for growth and new markets with high population density (i.e. Texas, Northeast and Chicago)TBU 1094144_1.wor (NY008SR4
Slide 15: Drive Brand Awareness
Drive Brand Awareness • Increase breadth and depth of customer engagement Strong and Growing • Maintain fun and compelling in-store events such as Follower Base augmented reality scavenger hunts Connecting with • Pursue co-branded promotions with third-party brands, our core influencers and social m
Slide 16: Increase Operating Margins
Increase Operating Margins Opportunity to increase operating margin through scale efficiencies driven by comparable store sales increases combined with continued process improvements Largely fixed occupancy costs Leverage Fixed Operating Margin % (1) Costs through Favorable buying costs due to s
Slide 17: Why Invest in Tillys?
Why Invest in Tillys? We Are Executing on …To Drive Overall Growth Current Strengths… Destination Retailer with a Broad Drive Comparable Store Sales and Differentiated Assortment Continue to Grow E-com and Dynamic Merchandise Model Leverage Omni-Channel Capabilities Flexible Real Estate Strategy Acr