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Tailored Brands posts 2.7 percent sales rise at Men’s Wearhouse

By Prachi Singh

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Report

Tailored Brands second quarter GAAP net sales decreased 1.1 percent, or 10.4 million dollars, to 909.7 million dollars. Net sales at Men's Wearhouse, increased 2.7 percent and comparable sales increased 2.9 percent from last year's second quarter. Meanwhile, the company has maintained its outlook for full year adjusted EPS in the range of 1.55 dollars to 1.85 dollars per diluted share.

"We are pleased to report a 2.9 percent comparable sales increase at Men's Wearhouse. In addition, Jos. A. Bank's 16.3 percent comparable sales decline was consistent with the trend we saw in the first quarter and in line with our expectations," said Doug Ewert, President and CEO of Tailored Brands, adding, "We are on track to achieve our targeted 50 million dollars of cost savings in fiscal 2016. During the second quarter, we closed 86 stores, including 45 Jos. A. Bank factory stores and eight Men's Wearhouse outlet stores, and we remain on schedule to close approximately 250 stores during fiscal 2016.”

Detailed review of the second quarter results

Jos. A. Bank comparable sales decreased 16.3 percent. K&G comparable sales decreased 2.2 percent, while net sales for Moores, the company’s Canadian retail brand, decreased 4.9 percent primarily due to unfavourable currency fluctuations. Moores had a comparable sales decrease of 1.5 percent. The Corporate Apparel segment saw a sales increase of 30 percent primarily driven by the beginning of the rollout of a large new uniform program.

Retail segment net sales decreased by 3.4 percent or 28.7 million dollars, while comparable rental services revenue increased 4.7 percent. Corporate apparel sales increased by 30 percent or 18.3 million dollars. Operating income was 59.6 million dollars compared to operating income of 98.1 million dollars last year. Net earnings were 25 million dollars compared to net earnings of 47.8 million dollars last year. Diluted EPS was 0.51 dollar compared to diluted EPS of 0.98 dollar in the prior year quarter.

H1 net sales decline 3.7 percent

For the first six months, GAAP total net sales decreased 3.7 percent or 66.7 million dollars to 1,738.5 million dollars. Retail segment net sales decreased by 5.2 percent or 86.8 million dollars and corporate apparel sales increased by 16.5 percent or 20.1 million dollars.

“Our full year guidance, reflective of a cautious retail environment, assumes slightly lower comparable sales growth at Men's Wearhouse and better comparable sales performance at Jos. A. Bank, including positive comparable sales for Jos. A. Bank in the fourth quarter,” stated Ewert.

Picture:Facebook/Men's Wearhouse

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