- Prachi Singh |
Fourth quarter GAAP diluted loss at Tailored Brands was 0.62 dollar per share compared to a loss of 21.86 dollars in the same period a year ago. Full year GAAP diluted earnings were 0.51 dollar, compared to GAAP loss per share of 21.26 dollars last year. Fiscal 2016 adjusted diluted EPS was 1.76 dollars compared to 1.80 dollars last year.
"We closed 233 stores under our store rationalization program, we achieved over 60 million dollars in cost savings through our profit improvement plan, and we stabilized and began to turn around Jos. A. Bank. Unfortunately, the challenging retail environment resulted in soft traffic across our retail brands, which drove lower than anticipated fourth quarter and full year net sales and gross margins. We remain focused on delivering long-term value to our shareholders with disciplined capital management and prudent investment in our organic growth strategies, " said Doug Ewert, President and CEO of Tailored Brands, in a statement.
Men’s Wearhouse net sales drop 3.7 percent
Net sales for the fourth quarter at Men's Wearhouse, decreased 3.7 percent and comparable sales decreased 2.2 percent from last year's fourth quarter. The decrease in comparable sales, the company said, resulted primarily from decreases in both average transactions per store and average unit retail, partially offset by increases in units per transaction and higher rental services revenue. Comparable rental services revenue increased 9.4 percent.
Jos. A. Bank comparable sales increased 3.6 percent, while net sales decreased 4.7 percent due to significant store closures in 2016 as part of the company's store rationalization program that more than offset comparable sales increases. K&G comparable sales decreased 5.2 percent and Moores comparable sales decreased 5.4 percent. However, total net sales for Moores decreased 2.1 percent primarily due to favorable currency fluctuations.
Net sales for the Corporate Apparel segment decreased 4.8 percent due to unfavorable currency fluctuations partially offset by higher US sales. Total net sales decreased 3.9 percent to 793.3 million dollars on GAAP basis, while retail segment net sales decreased by 3.9 percent due primarily to store closures as well as comparable sales declines.
Total gross margin was 302.1 million dollars, a decrease of 9.1 million dollars, due primarily to a decrease in retail segment net sales. As a percent of retail sales, retail gross margin increased 60 basis points to 39 percent. Net loss for the quarter was 30.1 million dollars compared to 1,057.7 million dollars last year.
Net sales declined 3.4 percent for the whole year
On GAAP basis, total net sales decreased 3.4 percent to 3,378.7 million dollars and retail segment net sales decreased by 4.7 percent. Corporate apparel sales increased by 15 percent or 36.5 million dollars, due to the rollout of airline uniform program in 2016.
Total gross margin was 1,441.5 million dollars, a decrease of 43 million dollars, due to the decrease in retail segment net sales. As a percent of total sales, total gross margin increased 20 basis points. Net earnings for fiscal were 25 million dollars compared to a net loss of 1,026.7 million dollars last year.
FY17 earnings are expected to range between 1.45 to 1.75 dollars
Diluted earnings per share, for fiscal 2017, are expected to be in the range of 1.45 dollars to 1.75 dollars. The company expects comparable sales for Men's Wearhouse to be down low-single digits, Jos. A. Bank to increase mid-single digits, and Moores and K&G to be down mid-single digits. The company expects approximately net 10 store closures in fiscal 2017.
Picture:Jos. A. Bank