- Prachi Singh |
Third quarter GAAP diluted EPS were 0.75 dollars at Tailored Brands, which the company said, includes 0.03 per share from a net gain on extinguishment of debt, compared to GAAP diluted EPS of 0.58 dollar, or adjusted diluted EPS of 0.71 dollar, for the third quarter last year, which included 0.03 dollar per share from a net gain on extinguishment of debt.
"While we still have more work to do, we are pleased with the progress in our business in the third quarter. We posted positive comparable sales at Jos. A. Bank and sequential comparable sales improvement at Men's Wearhouse and K&G, resulting in our second consecutive quarter of positive comparable sales for our retail segment. Based on solid third quarter results and a good start to the fourth quarter, we have increased our EPS outlook for the year," said Tailored Brands CEO Doug Ewert in a press release.
Review of Tailored Brands’ Q3 performance
Comparable sales at Men's Wearhouse decreased 1 percent. The company said, comparable sales for clothing increased slightly, while comparable rental services revenue decreased 4.3 percent, primarily reflecting a consumer shift to purchase suits for special occasions. Jos. A. Bank comparable sales increased 4.9 percent, while K&G comparable sales decreased 0.6 percent. Moores comparable sales also decreased 2.6 percent.
On a GAAP basis, total gross margin was 358.8 million dollars, a decrease of 18.4 million dollars, primarily due to a decrease in corporate apparel net sales. As a percent of sales, total gross margin decreased 30 basis points to 44.2 percent. On an adjusted basis, total gross margin decreased 20 basis points. On a GAAP basis, retail gross margin was 342.1 million dollars, a decrease of 8.2 million dollars. As a percent of sales, retail gross margin decreased 10 basis points to 45.8 percent. On an adjusted basis, retail gross margin decreased 7.3 million dollars and the retail gross margin rate was flat compared to last year.
On a GAAP basis, operating income was 76.6 million dollars compared to 61.1 million dollars last year. As a percent of sales, operating margin increased 230 basis points to 9.5 percent. On an adjusted basis, operating income was 76.6 million dollars, up 4.4 percent compared to 73.4 million last year dollars. As a percent of sales, operating margin increased 80 basis points to 9.5 percent.
On a GAAP basis, net earnings were 36.9 million dollars compared to 28.4 million dollars last year and diluted EPS was 0.75 dollar compared to 0.58 dollar last year. On an adjusted basis, net earnings were 36.9 million dollars compared to 34.6 million dollars last year, while adjusted diluted EPS was 0.75 dollar, an increase of 5.6 percent compared to 0.71 dollar last year.
FY17 GAAP diluted EPS expected to range between 1.80 to 1.85 dollars
The company now expects to achieve GAAP diluted EPS in the range of 1.80 dollars to 1.85 dollars, and adjusted diluted EPS of 2.03 dollars to 2.08 dollars. The company continues to expect comparable sales for Men's Wearhouse and Moores to be down low-single digits and comparable sales for Jos. A. Bank to increase mid-single digits. The Company now expects comparable sales for K&G to be down low-single digits.