For its second quarter, Tailored Brands, Inc., on a GAAP basis, reported net earnings of 34.3 million dollars compared to 49.2 million dollars last year. Diluted EPS was 68 cents compared to 97 cents last year. On an adjusted basis, net earnings were 41.7 million dollars compared to 54.6 million dollars last year, while adjusted diluted EPS was 82 cents compared to 1.07 dollar last year. Total net sales decreased 4.1 percent to 789.5 million dollars. The company said, retail net sales decreased 4.1 percent due to a decrease in retail segment comparable sales of 3.6 percent, while corporate apparel net sales decreased 3.9 percent or 2.2 million dollars, due to the impact of a weaker British pound this year compared to last year.
“We were pleased to deliver second quarter comparable sales in line with our guidance and adjusted earnings per share above our guidance,” said Tailored Brands President and CEO Dinesh Lathi in a statement, adding, “The board of directors’ unanimous decision to suspend the quarterly cash dividend for reallocation to debt repayment and share repurchases is consistent with our commitment to responsible allocation of capital. And while our Q2 results and Q3 guidance reflect the need to transform our customer experience and the fact that transformations take time, the early signs of customer response to our strategies indicate that we are making healthy progress on our journey.”
Tailored Brands’ comparable sales development across brands
Men’s Wearhouse comparable sales decreased 4.3 percent, while comparable rental services revenue decreased 3.1 percent, reflecting the continuing trend to purchase suits for special occasions. Jos. A. Bank comparable sales decreased 3.3 percent, K&G comparable sales decreased 1.3 percent and Moores comparable sales decreased 2.5 percent.
For the third quarter of fiscal 2019, the company expects to achieve adjusted diluted EPS in the range of 40 cents to 45 cents, excluding the impact of any share repurchases, comparable sales for Men’s Wearhouse to be down 3 percent to 5 percent, Jos. A. Bank to be down 2 percent to 4 percent, K&G to be down 2 percent to 4 percent and for Moores to be down 4 percent to 6 percent. The company expects net closures of seven stores, across Men’s Wearhouse and Jos. A. Bank.
Picture:Facebook/Jos. A. Bank