TAILORED BRANDS’ FIRST QUARTER FALLS BELOW ESTIMATES
Tailored Brands, Inc., which owns such brands Men’s Wearhouse, Jos A. Bank, and Joseph Abboud, has announced its financial results for the fiscal first quarter ended April 30, 2016.
First quarter adjusted diluted EPS was $0.29,which was considerably below some analysts’ estimates of 45 cents EPS. Nevertheless, the company still expects its adjusted EPS for Fiscal 2016 to be in the range of $1.55 to $1.85.
Net sales declined 6.4 percent to $828 million, and retail sales declined 7.7 percent to $615.7 million. Men’s Wearhouse reported a below-plan comparable sales decline of 3.5 percent, while Jos. A. Bank had a comparable sales decline of 16 percent, which Doug Ewert, Tailored Brands’ president and chief executive officer, said was nonetheless better than expectations.
“Our first quarter results were mixed as we navigated the difficult consumer and retail environment and cycled a strong performance in last year’s first quarter,” said Ewert. “We are making progress on our transition plan for Tailored Brands. We’re executing on our profit improvement program, organizational realignment, store base rationalization, and cost reductions. We remain committed to stabilizing, resizing, and rebuilding the foundation of the Jos. A. Bank business to a base from which we can profitably grow on a go-forward basis. Lastly, I am pleased that business seems to be improving in the second quarter, as evidenced by our May comps.”
In early Thursday morning trading, the stock market reacted negatively to the earnings news, with shares of the company down over 8 percent, after closing on a positive note in regular Wednesday trading.
Tailored Brands, Inc. is the largest specialty retailer of men’s suits and the largest provider of rental product in the U.S. and Canada with over 1,800 stores including tuxedo shops within Macy’s. In addition to Men’s Wearhouse, Jos. A. Bank, and Joseph Abboud, the company’s brands include Moores Clothing for Men and K&G Fashion Superstores. Tailored Brands also operates a global corporate apparel and workwear group consisting of Twin Hill in the United States and Dimensions, Alexandra and Yaffy in the United Kingdom.
