Tilly’s, Inc. Provides Fiscal 2020 Second Quarter Business Update Following Recent California COVID-19 Store Closures

Tilly’s, Inc. (NYSE: TLYS, the “Company”) today provided updated information regarding its fiscal 2020 second quarter store operating status, net sales results, cash position, and certain other business updates following the recent required closures of indoor shopping malls in certain counties of California as a result of the COVID-19 pandemic, as directed by the State of California (the “July CA Closures”), first announced by the state on July 13, 2020.

Store Operations Update

The Company began the second quarter of fiscal 2020 ending August 1, 2020 with all 239 of its stores closed to the public as a result of the impacts of the COVID-19 pandemic. Beginning on May 15, 2020, in accordance with guidelines from local, state and federal governments and health organizations, including new health and safety protocols and significant restrictions on customer occupancy in stores, the Company began reopening its stores in a phased approach. The Company reopened 144 of its stores during the second half of May, 88 more stores throughout the month of June, and 3 additional stores during July, totaling 235, or 98%, of its total 239 stores prior to the July CA Closures. Of the Company’s 239 total stores, 98 stores, or 41%, are located in California. The Company’s 98 California stores collectively accounted for approximately 50% of the Company’s total net sales from physical stores during the Company’s fiscal year ended February 1, 2020. As of July 15, 2020, as a result of the July CA Closures, the Company was required to close 28 of its California-based indoor mall store locations, leaving 203 stores, or 85%, of its total 239 stores open to the public. The Company may be required to close additional stores at any point in time, within or outside of California. According to the State of California website, affected indoor mall locations are expected to remain closed for at least three weeks from the closure date.

Fiscal 2020 Second Quarter Net Sales Update

Since their respective reopening dates and through July 14, 2020, compared to the respective comparable prior year periods, collectively, customer traffic in the reopened stores has decreased by 27% and comparable store net sales in the reopened stores have decreased by 5.1% with a very wide disparity in comparable store net sales results on a per store basis, and with negative comparable store net sales in both off-mall and mall-based stores, each on an aggregated basis. Total comparable net sales for the second quarter of fiscal 2020 through July 14, 2020, including ecommerce and periods for which physical stores were temporarily closed as a result of the COVID-19 pandemic, were $101.8 million, a decrease of $10.6 million or 9.4%, compared to $112.4 million for the comparable period last year. Comparable store net sales from physical stores were $60.7 million, a decrease of $36.2 million or 37.4%, compared to $96.9 million for the comparable period last year. Net sales from ecommerce were $41.2 million, an increase of $25.7 million or 165.9%, compared to $15.5 million for the comparable period last year.