- Prachi Singh |
Tailored Brands net sales for the first quarter ended April 29, 2017 decreased 5.5 percent to 782.9 million dollars. The company said, retail segment net sales decreased by 5.3 percent due to the impact of last year's store closures as well as comparable sales declines, while corporate apparel segment net sales decreased 8 percent due to unfavorable currency fluctuations partially offset by higher US sales.
"After a tough February, our first quarter comparable sales improved as the quarter progressed," said Tailored Brands CEO Doug Ewert in a media statement, adding, "We were pleased to have reached an agreement with Macy's to wind down our tuxedo rental partnership, which eliminates the risk of extended future operating losses and enables us to focus on our rental business at Men's Wearhouse, Jos. A. Bank and Moores. As such, we are reaffirming our EPS outlook for fiscal 2017 that we provided on May 3rd.”
Comparable sales decline across brands except Jos. A. Bank
Comparable sales at Men's Wearhouse decreased 3.1 percent, and comparable rental services revenue decreased 0.9 percent. Jos. A. Bank comparable sales however increased 3.5 percent due to an increase in transactions that more than offset a decrease in average unit retail while units per transaction were essentially flat.
K&G comparable sales decreased 7.4 percent, while Moores comparable sales decreased 5.3 percent primarily due to decreases in both average unit retail and transactions while units per transaction were flat.
On a GAAP basis, net earnings for the first quarter were 1.8 million dollars compared to 1.6 million dollars for the same quarter last year. Diluted EPS was 0.04 dollar compared to 0.03 dollar in last year's first quarter. On an adjusted basis, net earnings for the quarter were 13.3 million dollars compared to 13.9 million dollars for the same quarter last year. Diluted EPS was 0.27 dollar compared to 0.29 dollar in last year's first quarter.
Tailored Brands announces full year guidance
As previously announced, the company expects to achieve diluted earnings per share in the range of 1.37 dollars to 1.67 dollars, and adjusted diluted earnings per share of 1.60 dollars to 1.90 dollars. The company continues to expect 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 plans to close all 170 tuxedo shops at Macy's in the second quarter. In addition, the company now expects approximately net 20 store closures compared to its previous outlook of net 10 store closures, with the increase due to additional Jos. A. Bank store closures.