Chris Nealand
Long only

Tilly's: Thinking Too Big For Its Britches

This article is intended to be an overview of the flaws I see in Tilly's business model and management's decision to maintain an unsustainable new store growth rate before first optimizing its existing fleet of stores and providing better, cost efficient shipping and logistics for its stores located outside of the West Coast and online consumers not reached by its brick and mortar stores.

A Niche Market

Tilly's (NYSE:TLYS) is an action sports specialty retailer of West Coast inspired apparel, footwear and accessories. It operates in a niche market place, targeting teens that enjoy such action sports as surfing and skateboarding, in areas with above average incomes.

Fashion retailing as a whole already poses a difficult business model....

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