Investor Presentation

January 2018
 Safe Harbor Statement
This presentation, and responses to certain questions about this presentation, will contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995, particularly with regard to
future financial and operating expectations, business plans and key initiatives. All such statements are subject
to risks and uncertainties that could cause actual results or events to differ materially from those indicated by
such forward-looking statements. Please see “Risk Factors” in our Annual and Quarterly Reports on Forms 10-K
and 10-Q filed with the Securities and Exchange Commission for a description of such risks and uncertainties.
You are urged not to place undue reliance on these forward-looking statements, which speak only as of the date
of this presentation. We do not undertake any obligation to update or alter any forward-looking statements,
whether as a result of new information, future events or otherwise. This presentation should be read in
conjunction with our financial statements and notes thereto contained in our most recent Form 10-K.

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 About Us
• Leading specialty retailer offering apparel, footwear and accessories for young
adults, teens and children, with an unparalleled blend of over 400 iconic global,
emerging, and proprietary brands over the course of the year.
• 219 stores in 32 states, both in-mall and off-mall at end of FY17. FY18 plan
includes 10 to 15 new stores plus 3 to 5 RSQ-branded pop-up stores.
Profitable online business represents ~13% of total sales.
• Headquartered in Irvine, CA. First store opened in 1982, IPO in May 2012.
Profitable in every one of our 35 years in business.
• Ed Thomas (CEO) and Mike Henry (CFO) joined TLYS during FY2015.

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 Our Targeted Customers
• Teens and young adults, both male and female, age 14-24
• Active, connected, creative and adventurous
• Passionate about an active lifestyle, including sports, music, art, and fashion
• Highly engaged across all social media channels
• Additional differentiating factor: Boys and Girls apparel and footwear

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 TLYS vs. the Retail Environment
TLYS’ recent results have improved while retail industry news has been largely negative:

• “Mall traffic is down”

• TLYS has had year-over-year store traffic growth for 36 of first 47 weeks
compared to Citi’s weekly traffic report citing negative mall traffic for all but one
Easter-shifted week in FY17.
• “Malls are dying, stores are closing”
• Entering Q4 2017, positive comps for 9 of the past 11 quarters, and improved
year-over-year operating income for 6 consecutive quarters.
• FY18 plans include 10 to 15 new stores and 3 to 5 RSQ-branded pop-up stores.
• With only 219 total stores (140 mall-based), not as exposed to the broader lower-
grade mall problem that others are.
• Meaningful investments in omni-channel and online/mobile capabilities.
• “Online/mobile is taking over”
• Assortment exclusivity is key (~60% of apparel is unique to TLYS).
• Merchandise assortment is extremely diversified (largest third-party brands are only
5-7% of total sales; most brands do not sell directly to Amazon).
• Dedicated e-com fulfillment center to absorb growth of online/mobile.
• TLYS generates sales via Amazon Marketplace.

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219 Stores at FYE17 – 10 to 15 New Stores Planned for FY18

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 FY18 New Stores
• LOCATION CITY, STATE SQ FEET OPENING
1. Mt. Shasta Mall Redding, CA 6,500 Late Q1
2. Barton Creek Mall Austin, TX 6,059 Early Q2
3. La Plaza Mall McAllen, TX 6,000 Early Q2
4. Mountain View Village Riverton, UT 6,666 Mid Q2
5. Mall at Rockingham Park Salem, NH 5,315 Late Q2
6. Red Rock Commons St. George, UT 8.012 Late Q2
7. Alderwood Mall Aldewood, WA 5,139 Late Q2
8. Orland Square Orland Park, IL 6,235 Mid Q3
9. Christiana Mall Newark, DE 4,999 Late Q3

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 RSQ Pop-Up Shops (Current Renderings)

As opportunities become available, TLYS will introduce RSQ branded pop-up stores in select
markets to improve brand recognition. Approximately 3-5 of these to occur in FY2018.

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Curated Collection of the
Most Sought-After Brands

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Diversified Assortment – No External Brand > 7% of Total Sales

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Our Stores Are Both Off-Mall and In-Mall
(Outdoor Venue @ Irvine Spectrum)

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Our Stores (Traditional Mall Venue) = Real Estate Flexibility

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 Our Goals
• Near-term: Return to mid single-digit operating margin (FY15’s 3.3% lowest ever).
• FY16 marked first improvement in operating margin in five years (+10 bps).
• FY17 operating margin is projected to improve by approximately 60 bps.

• Longer-term: Return to high single-digit operating margin.

• Topline productivity is key. Sales/SF has dropped 17% since FY11, but has
improved 1% in FY17.
• Product margins to remain healthy and relatively stable.
• Tight inventory and expense management to continue.
• Improve the customer experience at all touch points.

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 Key Areas of Focus
• Improve sales productivity
• Assortment adjustments to fit store profiles
• Assortment productivity to be refined

• Improve customers’ perception of value

• Buy into value offerings
• Placement of deals throughout store
• React faster on slow sellers

• Drive traffic to stores and improve customer engagement

• Marketing events
• Omni-channel initiatives
• Improve social media efforts

• Continue to grow E-commerce business

• Real estate opportunities (nearly 120 lease decisions to be made thru 2019)

• Keep expenses and inventory tight

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 FY16 and FY17 Financial Results
• Achieved first annual improvement in operating income of last five years in FY16 (+6.8%).
• Projecting to finish FY17 with operating income up ~20%. Entered Q4 with 6 consecutive
quarters of positive comps and 4 consecutive quarters of store traffic growth.
• Sales comps better than inventory comps in each quarter since Q4 FY15, with product
margins up in Q2-Q3 of FY17 (first time since Q3 FY15).
• SG&A dollars reduced in FY16 and, other than due to legal provisions, again in FY17
despite minimum wage increases and other increasing cost pressures.
• Finishing FY17 with ~$140 million in cash and investments.
• Declared and paid first-ever stock dividend in February ($0.70 per share, ~$20 million)

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Turning Operating Margin Around in FY16 and FY17
Operating Income % Change per Year
25.0%
20.0%
20.0%
15.0%
10.0% 6.8%
5.0%
0.0%
‐5.0%
‐10.0% ‐5.4%
‐10.0%
‐15.0%
‐20.0%
‐25.0% ‐21.9% ‐22.0%
2012 2013 2014 2015 2016 2017

Operating Income ($M) per Year
 40.0
34.9 
 35.0 31.4 
29.7 
 30.0

 25.0 23.2  23.2 

19.3 
 20.0 18.1 

 15.0

 10.0

 5.0

 ‐
2011 2012 2013 2014 2015 2016 2017

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 Investment Highlights
• Broad and dynamic merchandise mix > 50% exclusive to Tillys, serving
children to young adults
• Proprietary labels are some of our best, offering premium fit and quality at
great value pricing
• Diversified assortment
• Over 400 brands sold in FY17
• More than 100 brands with > $500K sales
• No single third-party brand exceeds 7% of total sales
• Constant flow of newness, exclusives and collaborations
• Larger store format with a vibrant, stimulating and authentic
environment
• “Only” 219 stores leaves ample growth opportunities
• Both mall and off-mall success gives us real estate flexibility
• Significant cash on hand with no debt

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THANK YOU!

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