Tilly’s, Inc. (NYSE:TLYS) Q3 2022 Earnings Call Transcript

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Mitch Kummetz: Okay. And then lastly, Ed, there’s been a lot of talk on other retail earnings calls about how challenging the apparel environment is, in particular. Can you just elaborate on what you guys are seeing?

Ed Thomas: Yes. The apparel environment has been challenging. Honestly, I think part of it’s because there’s no dominant trend, particularly in our — cater to our age group. And for us, what we’ve seen is one of our best-performing categories is long bottoms, and it’s been good. I’m not saying denim other long bottoms, but the other typical categories that are really strong have slowed down. And I think part of its economic and part of it is lack of really dominant trend.

Operator: Our next question comes from the line of Matt Koranda with Roth Capital.

Unidentified Analyst: This is Ray on for Matt. Most of my questions were already asked, but maybe if you guys can talk a little bit about how Black Friday, Cyber Monday, I guess, how much of that sorry, okay. Maybe like Q4, how much of the revenue actually come from Black Friday and Cyber Monday and kind of like understanding that last year was a little bit out of the norm.

Michael Henry: I don’t have any data points on Black Friday as a piece of the quarter. I mean, it’s in the top five sales volume weeks of the quarter, top four, but the real bulk of the business comes around Christmas typically. And again, because of the difference of last year to this year it’s going to come later. There is an extra day of shopping before Christmas to say later this year. So there’s still a lot of business to be done yet. We did see during the Black Friday weekend, as we referenced, the month as a whole was down 18%. We were down worse than that in the first three weeks of November. And then Black Friday weekend was down about 13%, and Black Friday itself was only down 9%. So during that particular peak weekend, we saw a meaningful improvement in the trend of our business.

And given that we are expecting a later flow of the holiday shopping versus what it was last year, we’d expect to see similar sorts of behaviors during those key peak weeks in the mid- to latter part of December in particular.

Operator: It looks like we have reached the end of the question-and-answer session. I will now turn the call back over to Michael Henry for closing remarks.

Ed Thomas: Hi. Unfortunately, it’s Ed. Thank you for joining us on the call today. We look forward to sharing our fourth quarter results review in mid-March 2023. Have a good evening.

Michael Henry: Thanks, everybody.

Operator: And this concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.

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