- Prachi Singh |
Tailored Brands, Inc., for the fiscal first quarter ended May 4, 2019, on a GAAP basis, reported net earnings of 7.1 million dollars compared to 13.9 million dollars last year. The company said, diluted EPS was 14 cents compared to 27 cents last year. On an adjusted basis, net earnings were 10.7 million dollars compared to 25.3 million dollars last year, while adjusted diluted EPS was 21 cents compared to 50 cents last year.
Commenting on the first quarter results, Tailored Brands President and CEO Dinesh Lathi said in a statement: “I am pleased to report that we delivered first quarter adjusted EPS that exceeded our guidance, with Jos. A. Bank and Moores comparable sales ahead of expectations.”
Highlights of Tailored Brands Q1
Total net sales for the quarter decreased 4.5 percent to 781.4 million dollars, while retail net sales decreased 4 percent due to the decrease in retail segment comparable sales of 3.2 percent. Corporate apparel net sales decreased 10.1 percent or 6.4 million dollars.
Men’s Wearhouse comparable sales decreased 4.5 percent, while comparable rental services revenue decreased 6 percent. The company said, Jos. A. Bank comparable sales decreased 0.7 percent, K&G comparable sales decreased 0.5 percent, and Moores comparable sales decreased 4.6 percent.
On a GAAP basis, consolidated gross margin was 320.6 million dollars, a decrease of 24.7 million dollars, primarily due to the decrease in net sales. As a percent of sales, consolidated gross margin decreased 120 basis points to 41 percent. On an adjusted basis, consolidated gross margin decreased 120 basis points to 41.1 percent.
For the second quarter, the company expects to achieve adjusted diluted EPS in the range of 65 cents to 70 cent, comparable sales for Men’s Wearhouse to be down 3 percent to 5 percent, for Jos. A. Bank to be down 2 percent to 4 percent, for Moores to be down 2 percent to 4 percent and for K&G to be down 2 percent to flat. The company expects corporate apparel net sales to be down 4 percent to 6 percent and also expects net closures of seven stores, primarily at Jos. A. Bank.