Tailored Brands and Macy's end tuxedo rental partnership

Tailored Brands has announced that it has updated its outlook for fiscal 2017 to reflect the wind down of the tuxedo rental license business established between Macy's and Men's Wearhouse on June 9, 2015. The company expects to report a fiscal 2017 operating loss on the Macy's tuxedo rental business in the range of 7 million to 8 million dollars compared with its previous outlook of an operating loss of 19 million dollars to 20 million dollars.

As a result of the winding down of partnership, the company expects to report one-time charges of approximately 17 million dollars, of which 2.5 million dollars are non-cash costs. Based on the new agreement, the company now expects to report fiscal 2017 diluted EPS in the range of 1.37 dollars to 1.67 dollars and adjusted diluted EPS, which excludes the one-time charges, of 1.60 dollars to 1.90 dollars. This compares to previous guidance of diluted EPS in the range of 1.45 dollars to 1.75 dollars.

Picture:Men's Wearhouse website