Tilly’s Inc. (NYSE: TLYS) will decrease Co-Founder and current Interim Chief Executive Hezy Shaked’s annual salary by 35% starting on June 1.
The Irvine-based retailer’s board of directors approved a voluntary decrease from $1 million on an annual basis to $650,000 on May 18.
Shaked, also the current executive chairman, reentered the role of CEO in January when former executive Ed Thomas unexpectedly retired. He will continue in the role until a successor is found.
Shaked controls the voting shares for the company and holds a 1.3% stake of Class A stock and a 100% stake of Class B common stock with 7.3 million shares that represents 77% of the outstanding vote, according to the firm’s 2024 proxy statement.
Tilly’s, with 251 apparel stores in operation, reported fiscal fourth quarter net sales of $173 million, off 4.1% from a year prior. Net loss was 69 cents per share for the period ended Feb. 3.
“We see opportunities for improvement, but we expect it may take some time to see the benefits from our efforts in this environment,” Shaked said in a statement.
Shares were flat at $5.89 and a market cap of $177 million during afterhours trading. The company is scheduled to report fiscal 2024 Q1 results on June 6.
