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Tilly’s, Inc. Provides Store Reopening and Other Business Updates, Intends to Report Fiscal 2020 First Quarter Results on June 3, 2020
Store Reopening Plans
In accordance with the latest guidelines from local, state and federal governments and health organizations, and with new health and safety protocols in place, the Company currently expects to reopen 26 of its stores to the public on or about
The Company will continue to monitor the guidance from local, state and federal governments and health organizations, as well as announcements made by mall landlords to determine the pace of any future store reopenings, including the anticipated reopenings noted above. The Company intends to reopen stores only after the appropriate health and safety protocols applicable to each reopening have been implemented. As part of its reopenings, the Company intends to undertake the following actions to help promote a safe and comfortable environment for its employees and customers:
- Train its employees on the new health and safety protocols,
- Conduct health screenings and temperature checks for its employees working in stores,
- Encourage proper social distancing with signs, floor decals, and limiting the number of employees and customers in a store at any one time, as required by government guidelines,
- Provide face coverings for our employees,
- Implement regular cleaning and sanitation policies in its stores,
- Install plexiglass protective barriers at point-of-sale checkout,
- Keep all fitting rooms closed to the public,
- Offer buy-online-pickup-in-store and curbside pickup options in select stores, and
- Operate with reduced hours.
The foregoing policies and procedures remain subject to further evaluation and change. Information about open store locations and hours of operation will be available at www.tillys.com/reopening. The Company’s website remains available to customers for online orders.
“The health and well-being of our employees and customers is our top priority as we begin to reopen our stores. We anticipate customer traffic and sales activity will remain well below normal levels following the reopening of stores, which we expect will negatively impact our near-term profitability and cash flows from our reopened stores,” commented
Balance Sheet and Other Business Updates
As of
Total net sales for the first quarter of fiscal 2020 were approximately
The Company’s financial results provided herein for the first quarter of fiscal 2020 are preliminary in nature and the Company’s actual financial results are subject to finalization pursuant to the Company’s normal quarter-end accounting procedures.
Approximately 90% of the Company’s employee workforce remains on furlough at this time and previously announced management pay cuts remain in place. The combination of furloughs and management pay cuts has reduced the Company’s cash payroll costs by approximately
As noted above, in order to protect its liquidity, the Company has elected to withhold payment of its store rents for the months of April and
Tilly’s, Inc. Fiscal 2020 First Quarter Earnings Call
Investors and analysts interested in participating in the call are invited to dial (877) 407-4018 (domestic) or (201) 689-8471 (international) at
A telephone replay of the call will be available until
About Tillys
Tillys is a leading destination specialty retailer of casual apparel, footwear and accessories for young men, young women, boys and girls with an extensive assortment of iconic global, emerging and proprietary brands rooted in an active and outdoor lifestyle. Tillys is headquartered in
Forward Looking Statements
Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, statements regarding the overall effect of the novel coronavirus (COVID-19) pandemic, including its impacts on us, our operations, or our future financial condition or operating results, the actions that we may take in the future in response to the COVID-19 pandemic, and the impacts thereof on us, our operations, or our future financial condition or operating results, the effects of the COVID-19 pandemic on future staffing decisions and compensation, future expense reductions, our plans with respect to reopening certain of our stores to the public, our ability to do so, and the scope, geographical composition, and timing thereof, expectations regarding customer traffic and sales activity upon reopening, the effects of guidance from local, state and federal governments and health organizations on our future business operations and the nature and status of implementation, evaluation and changes with respect to health and safety protocols in stores, our plans surrounding store rent issues, the possibility of repaying withheld store rents or closing certain stores, and the potential effectiveness of negotiations with landlords in light of store closures and reduced sales activity upon reopening, and any other statements about our future cash position, financial flexibility, expectations, plans, intentions, beliefs or prospects expressed by management are forward-looking statements. These forward-looking statements are based on management’s current expectations and beliefs, but they involve a number of risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to, the effects of the COVID-19 pandemic (or other weather, epidemics, pandemics, or other public health issues) on our business and operations, and our ability to respond thereto, our ability to respond to changing customer preferences and trends, attract customer traffic at our stores and online, execute our growth and long-term strategies, expand into new markets, grow our e-commerce business, effectively manage our inventory and costs, effectively compete with other retailers, attract talented employees, realize anticipated, enhance awareness of our brand and brand image, general consumer spending patterns and levels, the markets generally, our ability to satisfy our financial obligations, including under our credit facility and our leases, and other factors that are detailed in our Annual Report on Form 10-K, filed with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20200508005423/en/
Investor Relations Contact:
Executive Vice President, Chief Financial Officer
949-609-5599, ext. 17000
irelations@tillys.com
Source: Tilly’s, Inc.