TLYS - Earnings call transcript Q1 2019

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Operator

Ladies and gentlemen, greetings and welcome to Tilly's, Inc.

First Quarter 2019 Earnings Results Conference Call. [Operator Instructions] As a reminder, this program is being recorded. It is now my pleasure to introduce your host, Gar Jackson of Investor Relations. Thank you.

begin. may You

Gar Jackson

then and quarter everyone, and the fiscal results Tilly's Henry, session. Good call. welcome Ed first and company's the earnings will CEO; the Thomas, XXXX Q&A CFO afternoon, discuss to host President Michael and

call replay forward-looking earnings of will statements. as statements find website Investor conclusion Accordingly, company's days. release, you please tillys.com. will of factors this after that XXXX, also differ be the forward-looking From to reflect place May based the of not the today, should current judgment For made Relations Tilly's visit and recorded the only of of reliance during on you section be for a able analysis next a press from Tilly's results on number Certain copy these may shortly call, this materially affecting and the at business. the call same section, XX, undue actual Tilly's of expectations a XX

call after X-K, session more in statements our For Form earnings to looking with see the forward regarding include prepared one to thorough uncertainties which to in as quarter today fiscal I furnished SEC call the release, on disclaimer XXXX over statements, filings associated will was limited Ed. Q&A risks SEC other any remarks. our first forward-looking that and now is the please a with well as our referenced included be that Today's will the turn of the disclaimer. hour a will discussion and

Ed Thomas

poor last the on higher the start for total produce and year, outlook After were were a the rebounded our up Fashion and Easter top this to our and us joining fiscal side share of a unseasonably X.X% business high today. and quarter XXXX mid in bottom of digits weakness percentage late performer swim April weather slow were earnings with everyone our double-digit the in weak afternoon, and quarter. Good Men's positive for during of within Women's you a the line $X.XX low to low for to results Girl's quarter strongest thank due shift line over our to ranges. Women's. first and dresses. again tops Boys Footwear comp fashion bottoms with and down per year. increase accessories was were digits. sales also single single all comp Both

opened first third during of XX store of stores openings new new the XX. to six due to fourth these lease our we year closed recapture. currently five pop-up RSQ one Chico, new Turning during in up store up executed have store and today. expect quarter, to quarter. new Natick, fully store full-size for the stores the pop-up X bringing closed Massachusetts one our Cerritos, RSQ and to new California the expiration original during second In we at upon full-size the just mid-June Dallas up open landlord to and in of real We estate, open have quarter, leases quarter as in full-size California store will total number the

we expect that, Prussia Given this later both King year. stores and Del full-size of Amo to open in

stores expected may action although to a quarter those will stores structure RSQ known our few store At we Despite year, occupancy also still no closures the anticipate concept. we of working full-size RSQ going time, improve lease received continue our finalize four negotiations forward. on this close we a do We made and which have to actively interest just from not but actions. the as to our occur have We lot we meaningful on will this various recognition. of also leases adding today, a additional properties. opening for cost our of full-size are landlord new upon over about have nearly community decisions the learned stores permanent our their negotiations to the two remaining stores, as a vehicle of from properties. of us in complement completed for brand lease them retail signed be any believe Our We've strengthening certain as traditional XX be we've pop-ups, initial establishing proprietary that the while members RSQ closure a this growth RSQ can

league X,XXX awareness traffic. Esports with school School brand is I'd High our our in league new encompassing bring We high fun step eyes focus announced creative about may country, the our Next, customers help inspire and to to provide mid-April. largest traffic. customer discuss for partnership like store the formally this on new This opportunities the to continued Esports level experience the and bring in-store approximately -- partnership at Tilly's drive to excited engagement, driving in the schools league We're nationwide. to

improve the for awareness of customer brand remainder Additionally, engagement other several to efforts year. we're and the working on promising

we to time, detail into on this brand continuing improve engagement of are at these customer at While items awareness ready are any to and our for not aimed go all company.

expect Turning mobile launch and an to loyalty expanded app program during the quarter. enhanced technology, to second we

program remain holiday We expect of We the and shopping our between be provide in investing season, likely, customer to convenience facing and to to engagement customer with committed and a holiday during seasons. back-to-school drive go buy the able further sales. second strengthen also to now live technologies year, later to pay half

much essentially and last Day X.X% slow XX second the with country, believe where patterns to and a of more decelerated reside. positive cool posted gives off through comp In results will far. comps. where the produced a suddenly in our here May. turned complete wet quarter, It California spring deceleration weather weather-related first from where Total provide thus weekend, in earnings operating we've second store time, particularly, assuming our currently. quarter across all almost are that Michael the given our stores Turning Florida, quarter outlook. week, mostly consistent the are and experienced quarter that have our this were occur the We quite introduce we Northeast summer the This now normal they products. weather geographies to confidence XXX of all first quarter positive that Mike? us traffic assortment performance comp in from will in is details Memorial of and we the start sales some improve By X.X% is warm same across is patterns weather the down here.

Michael Henry

Good Thanks, everyone. Ed. afternoon,

last stores. of our XX.X% XX.X% in XXX XX.X% expenses total from sales with branded costs total XXX an a results year year. leverage net e-comm XX and was total attributable net million and sales to These of decreased sales were point share represented of Total an sales XX.X% year. was and year's compared X.X% the the E-comm gross follows: million Gross and stores shipping as or XX top XX.X% including quarter $XXX.X million sales both Store increase and or costs margins approximately last e-commerce sales of year product last sales represented of our our to X.X% XXXX fiscal year. increased this million and three growth net comparable variances of sales operating net as decline in compared improved occupancy Our point net X.X% to year increase. first distribution of to of last point net XX.X% compared due by basis net net our quarter buying occupancy to sales X.X% of to XX increased margin decline basis and higher $XXX.X or sales including last associated partially year's approximately of total profit, compared inclusive $XX.X to total store comps basis of comp total a stores sales increase of $X.X compared decrease of quarter total million year. of net ended this total percentage pop-up increased net offset buying, X.X% were primarily first first points sales. a We $XX.X last X.X% e-comm XX.X% net primarily with last on in basis by markdowns. RSQ share The XX

been less business. on resulting September such have issued our X impact All expire in no of this material settlement September on to Regarding X% last the will coupons, date coupons legal we than redeemed year.

results of immaterial last e-comm results. and wage during higher $X.X Operating it net payroll the This compensation. e-comm remain pre-tax or income $X.X fulfillment operating compared employee costs be growth. of sales guarantee with $X.X items $X.X offset will approximately store expecting securities or to of last tax primarily net increased redemption during thus back-to-school year. year. was or While X.X% due net Total of income to or on annual cash positive based from marketable $XX.X to upcoming year, due approximately net with million sales last on XX.X% expense to the relating SG&A year's interest sales to and expenses approximately X.X% sales, store XX.X% largely million $X wage far. noted improved associated sales together impact million by the primarily in season or impact attributable rates tax last increases e-comm associated payroll of higher final to sales with XX.X% of period from SG&A income million marketing $XX.X was growth or investment million approximately $X.X million redemption income the any that year. million arising $X.X compared business sales partially portfolio minimum of rate we're minimum million to not the million year. and increased comp months includes our the the of net million of $X.X net our $X.X compared redemptions by stock-based results to can $XX,XXX earlier, costs last of income Income million no discrete merit pre-tax decline compared and XX.X% expenses This of Other was impacts on on were three higher meaningful increased to

versus approximately or We XX.X XX.X XXXX, a continue share million $X.X $X.XX absent Weighted discrete quarterly per million of or items. $X.XX rate diluted diluted were to last million share remainder fiscal the million last average diluted for to expect was basis year. for tax our $X.X effective be Net on income year. shares the compared income quarter XX% to per

capital In our third special cash compared no paid balance Turning debt the last to year. consecutive the share. and to first million increase for of $XXX.X sales below comp with This expenditures year's stockholders a ended in million inventory quarter were and year. inventories no with or year. $X.X more sheet, our we million $XX.X $XXX to approximately X.X% dividend totaling with compared ended marketable Total quarter aging securities million X.X% dividend We last the current last per to XXXX, and special $X.X totaled million compared February debt we $X to and year. aggregate up a

Now to fiscal for second quarter of XXXX. outlook our the turning

Ed quarter Memorial a As earlier, noted the is total slow start comps to with Day down weekend. X.X% through second off

charges per $X.X assuming range remainder store $X.X This and $XXX million million average to approximately net we the over our historical Operating weather results no and million to outlook earnings share million. on quarter. income of assumes non-cash expect X% decrease rate the and for net on based we XX improve sales the tax to occur. approximately to of income and of believe range $XXX impairment $X.XX. incompatible X% $X.XX range current of However, based total from shares Accordingly, to diluted a effective to million approximately from will XX% quarter normal store approximately patterns weighted sales trends, to approximately more from approximately asset diluted

per square to comp will Operator, inventories foot sales go Q&A. consistent our expect We with now performance. remain to we

Operator

question Ladies line Thank the Q&A we session. Dave ROTH Capital. with of be first Instructions] comes Our King conducting now you. will gentlemen, our [Operator from and

You now are live.

Dave King

afternoon, Good guys. Thanks.

Ed Thomas

Hi.

Dave King

e-commerce the in I quarter? guess for how full first in perform and embedded your the more the performance what’s date on versus X.X% to QX, quarter guidance importantly did down

Michael Henry

Day down high-single So the and both are through performance Memorial quarter. from weekend high-single decelerated up digits digits. e-comm and first e-comm was of the stores Stores

meaningfully decelerated quite it nearly was it XX So in from up that QX.

sides, So slowed stores or whether both e-comm down.

Dave King

right, compare, I But …? difficult may think a more have Okay. e-comm had bit little that

Michael Henry

transitions territory just this last issues of we year, of QX up had positive time we prior. to some system cleaning get upon the the into At were back year in that after back starting

Ed Thomas

pretty were similar. category Yes, and channels performance both on

So, where was more we on saw channels. the summer/spring challenging goods both

Dave King

Okay.

QX. back-to-school Then to Okay. then, at sticking QX into Are some thinking we the year maybe That those all bit, days QX, about guidance how guide? shift a that the on with helps. I -- there shifting was think and the be a from in last is weighing should back

Michael Henry

it year the far. that to To from of contemplating to abundantly just regard our going are make be be get be what seen we to in what -- rest No, guidance, terms way. forward of in the much more in total will consistent higher-end I business flat we it this thus the dates Really of should we’ve get need clear. basically the

lower-end the need to guidance, be of about rest to On of to X% of down the way. the lower-end we the guidance get the

Dave King

Okay.

Okay. then you margin, just terms bit -- and And takes et there, costs, on thinking a then, Mike, of the That about helps. talk shipping puts in impact in outlook SG&A maybe rents, cetera. terms can merch operating between about leverage income, of little the the

Michael Henry

Sure.

either of expect comp, to guidance product we our be on end down negative the So, with margins range. would

be disciplined up. inventory management, continue We are let not going problems about build we to to are to going

will have we to, to clean. inventory take we whatever keep pain So,

or it negative points down as and of either occupancy SG&A costs could were as And components expensive BDO on margins going deleverage minus could as that in the e-comm XXX more comp shipping costs distribution territory. down are Buying, If And plus end be we up that points. different the with could points be And as the two last within leading for of the end. the in comes as nature deleverage It are SG&A well. and QX. I they’ve And are comp with year. no then line, of XXX fulfillment bucket to out that basis quarters the than been basis down the we quarters. increases to XX the product e-comm So, would happen much sort costs. is course, much from the on to ago a minimum thing is us. then comes three distribution think points, this that this to XX much going anywhere better QX, basis negative and up if a we’ve costs of of a the continue It wage e-comm to in have XXX maybe marketing just to impact going are quite is to within range. that guidance in are the that now basis on called comp, They of be not

this surprised departments terms very week X% board weeks certainly and variances, off of as fallen for fell largely weren't and And five unexpected each it's over have new have of nothing geographies. of comps a flipped it's having been been So planning positive soon we We the QX. changed been coming and in. terms disappointed several We then, has of last across comp QX, Traffic points. or kicked accordingly. May a across in quarter, different comp weeks costs planning as and traffic each were down I on about other than to were three comp in how really in positive first the negative and May And so we off. for QX has the for just far of been

prepared noted again remarks, same Ed So, as in it's the the assortment.

do any didn't with really unfortunately. really and it's of to but this in awful are of that has of we an in go have -- local country So deceleration. lot the assortment caused we are to kind some would think here We fashion where particular, through kind it risk weather transition we do California, sort across cause

Dave King

Okay.

luck the great Thanks. back That's right. will and quarter for All and a step of I rest Okay. good color. Well, year.

Ed Thomas

you. Thank Okay.

Operator

you. Thank

Sinderen Our from Riley. B. Jeff next of Van the comes from question line

live. now are You

Jeff Van Sinderen

everybody. Hi,

on be just California give saw May helpful. in us brick-and-mortar? has -- e-comm more you May Just in Again, there would looking in regions? seeing to Also color in the Any you about California, other in been are been doing trending what in California, versus can at what May you that’s how business curious specific how California. versus

Michael Henry

state, early But by comps QX e-comm geographic we how by significant XX have that in I don't least answer several May. where stores we’ve can't at finished area points I Jeff, between Yes. every so definitively. decelerated

Southern more. has up down far The in in this just until was so California There down Midwest are been areas has have the Northern down week Northeast that past down been So the been other XX%, or California X%. teens. XX%

has do And, been to every it's lot pronounced. we with So again, awful we've think an been [indiscernible] it day. what single

Ed Thomas

it's As Mike us an gives where we've lot seen be out the that comps. in of that earlier, problem, seen confidence weather turnaround mostly it's That called the warm, assortment we’ve not a weather-related.

Jeff Van Sinderen

is so I like should example, there? place Florida, the -- if about think some What trend we Okay. think about how for

Ed Thomas

better. It's

Michael Henry

area actually now. It's only improved from right Yes. the comp positive QX. It's that’s

Ed Thomas

better. It's

Jeff Van Sinderen

Okay.

of kind weather, So on see sequential up think what else else the to kind And you guess from the your I following than is what going from that thinking improve? that, underpins trends QX? you of other driving just aside slowdown do whether are

Ed Thomas

what had think and pattern. soft the like women's across to momentum by good in you Women's has a and on Well, I handle categories. in seen mean softness reasons been board category, followed why. still we’ve we pretty we softer much good shoes But the that the the the take see and we've than weather in has we most seasonal shorts, categories men's planned -- pretty then continue

So I ..

Michael Henry

regardless That’s been of true women's.

Ed Thomas

right. That's Men's, yes women's, …

Michael Henry

they sandals, Doesn't all matter, meaningfully shorts, are swim, down.

Ed Thomas

had Yes. corrected tops in forward. that’s think crop out now thing the as many I The going assortment, would part one we women's been called our we too is, of for

we -- for that, and identified shape be will where we that challenges corrected a in we we’ve back-to-school. good -- so, just And mix few

Jeff Van Sinderen

Okay.

improving we we been could see, fair the like improves. see your could progression counter actually that and I that if really the see QX look as similar think wood, -- started California a in sounds given to I QX, places a should Is as in we other business remember, So, weather way is we We a weather knock in though warmer have regions and even have slowly don't business pretty well shift, on see colder. should that it? at improve it

Michael Henry

expecting, what we yes. are That’s

Ed Thomas

are expecting that. Yes, we

Jeff Van Sinderen

great. quarter. rest Okay, the my questions Thanks of to best for and taking of luck

Michael Henry

All Jeff. right. Thanks,

Operator

Thank you.

line Research. comes from Janet Kloppenburg question next JJK from Our the of

are now live. You

Janet Kloppenburg

wanted of second on say to, month smallest May that you most of in May, And just companies that -- comparison been -- the say year, I similar comparison. you everybody. it's they Hi, talking to you that the toughest it's that Would quarter. I've position? the Would challenging are that year. last quarter's the those say last comp most from a was ask

Michael Henry

the quarter last is of It's the month smallest the year, of little into barely. a yes. consistent roughly each the were so then, XX% for but month the quarter, May was May over far. And XX%, comp, strongest just pretty we about although us, maybe way

So a months each all quarter point of other, within maybe over just point. three about the were barely of a

Janet Kloppenburg

And through start, second here markdowns quarter Mike, quarter? the the they that’s to Okay. situation on inventory the to that a a move in got the quarter, and you fact the to related the have be probably off similar just first to going slow

Michael Henry

just sitting slow we addressing we any Yes, not sellers, addressing are issues issues. that see, on

inventory continue keep to disciplined. act We to

Ed Thomas

ever The inventory right is it's as been clean as now.

thing. good a that's So

of pretty of the line, So good despite I the the write-down. challenges inventory top feel composition about

Janet Kloppenburg

in the top outlook being your there some etcetera now crop softness And what's call, what’s guidance? for business to maybe women's the weak, with and right the bottoms here improvement implied in first and quarter the what and overexposure about

Michael Henry

that have even of expecting and to were we a comps. we’ve know are that improve adjustments into We turn And not where women's business those what the positive will that certain and terms differently. could a the We’ve are from back-to-school. of us like. identified know that categories mix rest done in far little the going things we there the the during Well, we off couple though industry again, made gives it quarter confidence was we of women's

Janet Kloppenburg

Okay.

that, So, think better. gets that you

Michael Henry

Yes.

Janet Kloppenburg

comparison. you being business, you think move robust been are up I implied know on Do will in know slow guidance? your back half Okay. than I And expected. forward? it's as challenging against -- that there footwear what’s and the better slightly category is we

Ed Thomas

not not way. us remains And has and should continue solid strong are will meaningful positive. to as as but it it We in still it slow any that -- it maybe expecting performance for a be I’m certainly remains been, expecting

Janet Kloppenburg

question. Okay. And last just

have of to is some channel's that there and that would impact certain terms it of allow it digital margin? crossover diminish, of pressure impact the volume the on gets point In to level or growth kind to that channel your margin, the where gross a will on that gross continue

Ed Thomas

Yes. shipping free And you to to throughout challenge. volume think is don't what prevalent to been. that the as that’s biggest it the historically is have our more being with competitive, as have often offer solve Really growth I free be almost challenge. going alone industry, than we shipping

think a for center everybody, fulfillment know. I that’s So, challenge as our you but we’ve own don't

pretty we most we operate we're pretty efficiently run our because -- the efficient, certainly but So not operate throughout. show we own

Janet Kloppenburg

what’s brick-and-mortar But channel operating look like the the for the versus that Okay. channel? weight income

Michael Henry

It's significantly lower than stores.

Janet Kloppenburg

they? Did

Michael Henry

and is digit four-wall all-in, of E-comm of profitability full-in, in in terms kind average. in high teens are stores single

a disparity So, there big is there.

Ed Thomas

the one this talked stores. to cause major sell of about is, we've of causes lot of we before versus that e-comm a Yes, clearance or

Janet Kloppenburg

right. Yes. that's Yes,

Ed Thomas

down Yes, so merchandise stores. brings that the than lower margins

-- the operating therefore falls operating through So it income.

Michael Henry

on top. and costs the costs added shipping fulfillment the all all Within

Janet Kloppenburg

positive you did that get turned has West comp And the Coast I say Okay. Michael, in wrong? that did now?

Michael Henry

in We No last it has Northeast Florida said week positive. not. turned the

Janet Kloppenburg

Okay, right. guys. luck. Best great. of Thank All you,

Ed Thomas

Thanks, you. Janet. Thank

Operator

Thank you.

comes next Pivotal Our with Mitch from question Research. the line of Kummetz

are now live. You

Mitch Kummetz

questions. my Yes. taking Thanks for

first us Mike, a it first quarter? you the Ed, by the on So so mentioned possible comps April. give for there month was in quarter, Is rebound to the

Michael Henry

and then that second, February, that's a were X% And X% in April. XX% will I find just up in … We me that something has in again, down on down March, it. Give

Mitch Kummetz

you March-April April Easter you a shift, mean, number the blended I the a do have too? sense, obviously do have with with So, --

Michael Henry

I front think of Not now. do. Oh X%. hang in on, was Blended wait, up me I March-April

Mitch Kummetz

Okay.

quarter the weather. the and mentioned slow the you QX, know talked I X%. to about you first you when So start that reported plus also guys

to X% like you saying, of the you trying a flat for right? are March and So is what you a and said understand earlier the to that your turned say comp to guess months two get comp I’m combined. in positive are April basically you I’m assuming it last -- Mike, that got I flat, the guessing that the weather comp, sounds whatever what high-end you is, outlook,

Michael Henry

Total the to company needs be of rest flat the way.

Mitch Kummetz

last last lot started you do plus then slow, up weather, doing couple time the you months. X% a So having of in guys with to a and ended

Now is get high-end else off gotten understand you’ve you to where could you this of with I'm that? to last I’m wouldn't last trying Do back difference, an there got see going that as even quarter the slower as the just the back much quarter? start, you but is flat. think happening a range only something you quarter versus

Michael Henry

have favor in Well, Easter our we in an QX. don't coming shift

Mitch Kummetz

but Yes, X%. were combined March-April plus

only are you assumes know I'm else the be aggressive minus guess at minus of from in play of for and now that gives the mean, I outlook X% at X% you you a I flat. February balance something You minus more the high-end or what March-April, quarter. if there's and went pause your to June X% with July a just to range from X% a wondering a and the plus to

Michael Henry

are down that and slower start fact meaningfully The summer spring down. Yes. all categories very double-digit the and

of. out quarter. don't So an the to on where for part frankly, back quite we've of the Easter we're starting dig And And hole have in to I have count that’s that shift started. a we

consistent think weather the weather, we also things going are predict get we with So to better more either. can't but

the is So with of way, think our realistic. rest way there's which we’ve of the and is of a what historical all unknowns studied data lot about it this but every we

Mitch Kummetz

straighten your far think I that Like have seasonal say goes, things seasonal more got drop or inventory. get you start of percent or Got of turn you inventory pricing? is where trying you stuff? about sort thinking nervous to in and kind cut If what dead point date to days need of that mind aggressive is you does I’m start and there good mean what -- to inventory about got the weather, the it. get as to way when out, X before your a of then, on And about like kind how any are to really do as that move seasonal? to your XX is to everything

Ed Thomas

lot there's all. Yes, year a there our warmer stores risk round. big weather mean of think I don't climates are a in at I

some categories we like that So all. I categories. don't performance have risk everybody that I not it's an but the at we obviously, swim, everybody results, we there's the about know extreme in to of of expecting seasonal see -- impact, seasonal else's would -- reading that I with any are mean are alone terms

are promotional having see We but expecting it don't us some pretty get categories, exposure a to in major there. I

Mitch Kummetz

All it. Got right. Thanks, had. That's all I guys. Good luck.

Ed Thomas

All right. Thanks.

Operator

you. Thank

Lynch. line the of Merrill Bank from Our America comes Buckley of from next question David

live. now are You

David Buckley

to Thanks sales, margin larger e-comm challenging? business of think how of accretive for getting as the a for And How you we comparisons want question. taking channel should about over growth the becomes for year I second. being transition my the percentage on then and remainder the focus more to Thanks. long-term? just guys. do Hi, a e-comm as becomes -- the

Michael Henry

to up is go going forward. against Well, compares tougher e-comm going

in expecting better it's it in positive line. have So that but growth the we QX, to maybe drive it's business. to plus comps stores. are not was it and e-comm, XX% Stores be need expecting it top XX% and still quarter at was plus going fourth in stay not that business to The profitability a to issue this contributor isn't biggest to our for meaningful

Ed Thomas

for as right now, as business they Yes, a profitable are good margins us. are -- stores e-comm's decent. and operating still It's then not although pretty

profitable, sure. would sure, So -- and it it some can will for but take as I time for it more expect get grows,

David Buckley

All Thanks, right. guys.

Ed Thomas

you. Thank right. All

Operator

Thank you.

William comes question line Blair. next the Sharon Our from Zackfia from of

live. now are You

Sharon Zackfia

Hi. Good afternoon.

Ed Thomas

Sharon. Hi

Sharon Zackfia

that’s negotiated way taking where to over making you those wanted your think that deals any are stores influences as your plans kind just you there any potentially helpful of context it's are how you are through or kind rent to working I now, what those, XX be breakeven of and working on. that would right the I comps Can at been us you've you kind on switch seeing your give that forward? expansion of on going color

Ed Thomas

We’ve had major off-mall cooperation our REITs. pretty good REITS, both and landlords with

I are we’ve that pretty is renewal, about for making what lease specific --- We confidentiality we announced. because are dealing economic disciplined and up improvement a we that the there pretty and not progress economics we very are renew we and disclose with not are good have of if lease. the But can't what sure of the which coming will right, been we making

Mike So of only in thought to I the profitable away past was handful since joined, a away. or walk had we actually where we’ve and walk to been situations there's it

seen difficult. So I you environment, of lot that's and we that, a seen the change. to The store continues still we expect vacancy that be haven't as lot There's very to know, wouldn't closures. haven't end of a of

economics the we environment like. expect to we that get for so, adjusted is And be what the

far, And so so good.

Sharon Zackfia

carrot openings? work new potential negotiations, you go landlords? mean, the unit do simultaneously is that when part through with I the on And you those of

Ed Thomas

of to off-mall good one we negotiation in certainly of carrot, again, point and several have the especially negotiate landlord the no you relation mall. -- we deals in under this I want both Well, lot and at And wouldn't have -- say close, but landlord environment. time we have a -- any it's with part several we relationship its

us. it So helps

staying that and it that it's it deteriorated leases kick-out have property so our work the to our generally not point worth But doesn't that lot in helps. where of unless make all, there. leases, leverage clauses, have has not try we existing landlord, we with the have of -- a to a if itself We

Sharon Zackfia

been Okay. malls and better the hang lot just any general been during contacts question. you've the the of driving and we of month historically Do about and that across of think May? terms of you May final know the Tilly's board, that And traffic could difficult the mall I peers. kind traffic but then I relevance our hats concept? something has in of Is outperforming on kind talked one has in a you off-malls May your from know have

Ed Thomas

though or our until declines we we've the know our for And even Yes, some declines we've months, what traffic -- we've we from be in recently see as for as seen, the what outperforming information the might slight industry. are that even outperformed wasn't traffic. though published whatever traffic, and several seen you still industry

So our still and discipline feel to we pretty the and are through of It's driving more store about that still good of types maintaining continuing are we things like do by We relationships. giving that. traffic away. events not

Sharon Zackfia

Okay.

Ed Thomas

sorry. ahead, Go

Sharon Zackfia

you. Thank

Michael Henry

in our traffic Ed year-over-year Yes, have I actually a nine traffic store would for been and quarters row. just add, store up

Ed Thomas

That’s right.

Michael Henry

was it below QX, just down -- just In flat. slightly

fallen better we I see. was is it's to than X.X%, down think earlier then, X%. as industry which any far of first May, the it still And mentioned in weeks about three reports we minus

number been that deceleration retailers while. awful read an a there out a lot a [indiscernible] we've of there's from So, fellow a our long for

Sharon Zackfia

you. Thank

Ed Thomas

Thank you.

Operator

closing. for back we gentlemen, over to and in no time. management at turn Ladies queue to questions would the like further have this floor I

Ed Thomas

quarter Well, thank to second forward with you late We evening us look for discussing good everybody Have in August. today. you a our everyone. results joining

Operator

does conclude teleconference today. and our gentlemen. This you, for Thank ladies

disconnect line and have now this day. your at for may time. You you your Thank a wonderful participation

Tilly's (TLYS) 29 May 192019 Q1 Earnings call transcript