On this page of StockholderLetter.com we present the latest annual shareholder letter from TILLY'S, INC. — ticker symbol TLYS. Reading current and past TLYS letters to shareholders can bring important insights into the investment thesis.
2023 Annual Report
To Our Stockholders: The last two fiscal years have been very challenging for our business. Fiscal 2022 brought a 40-year high in inflation and a sharp slowdown in our business, following a record-setting fiscal 2021 that was driven by post-pandemic pent-up demand and stimulus payments. Inflationary pressures continued to weigh on our business during fiscal 2023, contributing to the worst operating performance in our company s history. While we have not been alone in experiencing these challenges within our industry, our results in fiscal 2023 make it clear to me that we need to make changes. As the co-founder of this 42-year old business, I can assure you that no one cares about it and its success more deeply than I do. We urgently need to change the trajectory of our performance despite environmental headwinds, and we have already begun to take steps to do so. Since I assumed the role of Interim Chief Executive Officer in late January 2024, we have challenged every major facet of what we do, why we have done it the way we historically have, and how we can do it better. For example, we are refocusing our efforts to better understand who our target customers should be and align our merchandise assortments accordingly with the goal of improving sales. We are excited to produce marketing content that we expect will drive stronger connections with, and interest from, those customers. We are also working towards producing better product margins by exploring opportunities to sharpen our pricing decisions, whether through initial pricing, promotional pricing, or markdowns. We intend to remain disciplined and conscientious in management of our resources while we make these changes. We are hopeful that, as a result of these efforts, we will begin to see signs that our business is getting back on track in fiscal 2024. Thank you all as stockholders for trusting us through this journey. It is likely to be challenging to turn our business around in this economic environment, but we believe we can do it and we are motivated to rise to the challenge. We look forward to sharing our progress with you as we aim to return to generating sales growth, improved product margins, and profitability over time. Hezy Shaked Co-Founder, Executive Chairman of the Board, Interim President and Chief Executive Officer
 • shareholder letter icon 4/30/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/20/2023 TLYS Stockholder Letter
 • stockholder letter icon More "Apparel Stores" Category Stockholder Letters
 • Benford's Law Stocks icon TLYS Benford's Law Stock Score = 84


TLYS Shareholder/Stockholder Letter Transcript:

2023 Annual Report

To Our Stockholders:
The last two fiscal years have been very challenging for our business. Fiscal 2022 brought a 40-year high
in inflation and a sharp slowdown in our business, following a record-setting fiscal 2021 that was driven
by post-pandemic pent-up demand and stimulus payments. Inflationary pressures continued to weigh on
our business during fiscal 2023, contributing to the worst operating performance in our company   s history.
While we have not been alone in experiencing these challenges within our industry, our results in fiscal
2023 make it clear to me that we need to make changes.
As the co-founder of this 42-year old business, I can assure you that no one cares about it and its success
more deeply than I do. We urgently need to change the trajectory of our performance despite
environmental headwinds, and we have already begun to take steps to do so. Since I assumed the role of
Interim Chief Executive Officer in late January 2024, we have challenged every major facet of what we
do, why we have done it the way we historically have, and how we can do it better. For example, we are
refocusing our efforts to better understand who our target customers should be and align our merchandise
assortments accordingly with the goal of improving sales. We are excited to produce marketing content
that we expect will drive stronger connections with, and interest from, those customers. We are also
working towards producing better product margins by exploring opportunities to sharpen our pricing
decisions, whether through initial pricing, promotional pricing, or markdowns. We intend to remain
disciplined and conscientious in management of our resources while we make these changes. We are
hopeful that, as a result of these efforts, we will begin to see signs that our business is getting back on
track in fiscal 2024.
Thank you all as stockholders for trusting us through this journey. It is likely to be challenging to turn
our business around in this economic environment, but we believe we can do it and we are motivated to
rise to the challenge. We look forward to sharing our progress with you as we aim to return to generating
sales growth, improved product margins, and profitability over time.
Hezy Shaked
Co-Founder, Executive Chairman of the Board, Interim President and Chief Executive Officer



shareholder letter icon 4/30/2024 Letter Continued (Full PDF)
 

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