- Prachi Singh |
Tailored Brands, Inc., for the fourth quarter ended February 2, 2019, reported GAAP net earnings of 6.2 million dollars or 12 cents per diluted share and adjusted net loss of 14.2 million dollars or 28 cents per diluted share. For the fiscal year, the company reported GAAP net earnings of 83.2 million dollars or 1.64 dollars per diluted share and adjusted net earnings of 117.1 million dollars or 2.31 dollars per diluted share.
“In fiscal 2018, we delivered positive retail comps of 1.2 percent, with all brands positive, and we reported full year adjusted EPS of 2.31 dollars, consistent with the revised guidance we provided in January. During the fourth quarter, comps at Men’s Wearhouse and Jos. A. Bank were down and this trend has continued into the first quarter of 2019. We attribute the current softness to both the macro-environment as well as the need for us to execute more quickly and effectively on our core growth strategies,” said Tailored Brands Executive Chairman Dinesh Lathi in a statement.
Q4 net sales drop 8.6 percent at Tailored Brands
On a GAAP basis, the company’s total net sales decreased 8.6 percent to 785.8 million dollars, while on an adjusted basis, which excludes the 17.6 million dollars favourable impact of changes made to the loyalty programs, total net sales decreased 10.7 percent to 768.1 million dollars. On a GAAP basis, retail net sales decreased 7.3 percent to 730 million dollars and on an adjusted basis, the decrease was 9.5 percent to 712.4 million dollars due to the impact of last year’s 53rd week, the 1.5 percent decrease in retail comparable sales, and a 12 million dollars decrease in alteration and other services revenue largely resulting from the MW Cleaners divestiture.
The company said, corporate apparel net sales decreased 23.3 percent to 55.7 million dollars, due to lower replenishment demand in both the United Kingdom (UK) and the US, the impact of last year’s 53rd week, and the impact of a weaker British pound this year.
Men’s Wearhouse comparable sales decreased 3.2 percent, while comparable rental services revenue increased 0.7 percent. Jos. A. Bank comparable sales decreased 0.5 percent, K&G comparable sales increased 0.9 percent and Moores comparable sales increased 2.8 percent.
Tailored Brands full year net sales decrease 2 percent
On a GAAP basis, total net sales for the full year decreased 2 percent to 3,239.9 million dollars, while on an adjusted basis, which excludes the 17.6 million dollars favourable impact of changes made to the loyalty programs, total net sales decreased 2.5 percent to 3,222.3 million dollars.
On a GAAP basis, retail net sales decreased 1.6 percent to 3,004.5 million dollars and on an adjusted basis, retail net sales decreased 2.2 percent resulting from the impact of last year’s 53rd week and a 34.2 million dollars decrease in alteration and other services primarily resulting from the MW Cleaners divestiture, partially offset by an increase in comparable sales of 1.2 percent. Corporate apparel net sales decreased 6.3 percent or 15.9 million dollars, due to lower replenishment demand in the UK and the US as well as the impact of last year’s 53rd week, partially offset by a stronger British pound for the full year.
Men’s Wearhouse comparable sales increased 0.8 percent, comparable rental services revenue decreased 4.9 percent, primarily reflecting the trend to purchase suits for special occasions. Jos. A. Bank comparable sales increased 1.4 percent, K&G comparable sales increased 1.5 percent and Moores comparable sales increased 2.4.
Tailored Brands announces expectations for Q1
For the first quarter, Tailored Brands expects to achieve adjusted diluted EPS in the range of 10 cents to 15 cents, comparable sales for Men’s Wearhouse to be down 3 percent to 5 percent, for Jos. A. Bank to be down 3 percent to 5 percent, for Moores to be down 5 percent to 7 percent and for K&G to be flat to up 2 percent. The company expects corporate apparel net sales to be down 10 percent to 12 percent. Tailored Brands plans to close three Jos. A. Bank stores.