Tilly’s Inc (NYSE: TLYS) is another dinosaur company that begs for lower rents – Idaho Reporter

NYSE, Retail

Tilly’s Inc (NYSE: TLYS) is another dinosaur company that begs for lower rents

Tilly’s, Inc. (NYSE: TLYS,) stock plummeted today in after-hours trade when investors saw financial results for the first quarter of fiscal 2020 ended May 2, 2020. But this is not a huge drop (4.6%) and it will probably recover in the weeks ahead, unless their stores are looted.

“The first quarter was severely impacted by the COVID-19 pandemic, resulting in the temporary closure of all 239 of our stores halfway through the quarter and the painful decision to furlough 91% of our employee population,” commented Ed Thomas, President and CEO. “So much remains unpredictable at this time, but we are thankful that we have recently been able to bring some of our people back to work with the reopening of 160 of our stores thus far. We remain committed to the health and safety of our employees, customers and communities as we resume operating our stores.”

According to equity strategist Tracey Ryniec, Tilly’s just said things are changing by the day and that there are “too many moving parts”. And when it comes to daily cash burn it seems like TLYS is also clueless.

On the cash burn, there isn’t any one number. Too many variables.

Source

And in order to manage the cash position conservatively Tilly’s is proposing lower rents:”Single biggest thing that could help the retail industry is for rents to come down. They haven’t yet but he thinks that will be coming. Vacancies are way up. In most centers, not just malls.”

Performance isn’t good in stores near theme parks or in higher tourist areas.

The biggest disappointment (location wise) is Orlando:”Orlando has been extremely soft for us. Across the board. The traffic was down more than 40 or 50% in those stores alone. Waiting for Disney to reopen.”

NYSE: TLYS shares price went up 3.79% today but this was before Q1 results. Year to date TLYS lost 50% of its value. Even though e-commerce sales are in plus, it also caused higher costs in both marketing and fulfillment, meaning that TLYS is a company of the past that is having a hard time to adjust themselves against competitors such as Amazon.

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