- Prachi Singh |
For the second quarter ended August 4, 2018, Tailored Brands reported GAAP diluted earnings per share of 0.97 dollar and adjusted diluted earnings per share of 1.07 dollars, compared to 1.19 dollars for the same period a year ago. Total net sales for the quarter decreased 3.2 percent to 823.4 million dollars. Retail net sales decreased 3.2 percent, partially offset by an increase in retail clothing sales, which drove positive 1.7 percent retail comparable sales.
"We are pleased to report positive comparable sales for all of our retail brands this quarter. We executed well on growing our custom business and on increasing transactions through brand marketing campaigns and enhanced omni-channel initiatives," said Tailored Brands CEO Doug Ewert in a statement.
Highlights of Tailored Brands’ Q2 results
The company said, corporate apparel net sales decreased 3.9 percent or 2.2 million dollars, primarily due to lower sales in the UK partially offset by the impact of a stronger British pound this year. The company now expects corporate apparel net sales to decrease by a low-single-digit percentage in fiscal 2018 due to recent trends in the UK business.
Men's Wearhouse comparable sales increased 1 percent, while comparable rental services revenue decreased 11.5 percent. The company expects to report roughly flat comparable rental services revenue in the third quarter. Jos. A. Bank comparable sales increased 2 percent, K&G comparable sales increased 3.5 percent and Moores comparable sales increased 3.7 percent.
On a GAAP basis, consolidated gross margin was 368.9 million dollars, a decrease of 27.8 million dollars, primarily due to the decrease in net sales. As a percent of sales, consolidated gross margin decreased 180 basis points to 44.8 percent. On an adjusted basis, consolidated gross margin decreased 130 basis points, primarily due to a decrease in retail segment gross margin rate.
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Tailored Brands raises outlook for comparable sales results
Increasing its outlook for comparable sales and reaffirming its guidance for other key fiscal 2018 metrics, the company said, it expects diluted earnings per share in the range of 2.35 dollars to 2.50 dollars, comparable sales for Men's Wearhouse and Jos. A. Bank to be positive low-single-digits, for Moores, to be positive low-single-digits, up from flat-to-up slightly, and raising its outlook for K&G comparable sales to be flat-to-up slightly, up from flat-to-down slightly.
The company continues to expect capital expenditures of approximately 100 million dollars and approximately net 10 store closures in 2018 resulting from its continuous review of its real estate portfolio for opportunities to optimize its fleet as lease terms expire.