Tailored Brands’ Q4 sales miss; outlook weak
The parent company of Men’s Warehouse and Jos. A. Bank reported mixed fourth quarter results and a disappointing Q1 outlook amid “softness” in the “macro-environment.”
Tailored Brands posted earnings of $6.2 million, or 12 cents a share, for the quarter ended Feb. 2, compared with a loss of $499,000, or 1 cent a share, in the year-ago period. Adjusting for a tax benefit, the company's adjusted loss was 28 cents a share. Analysts had forecast a loss of 29 cents.
Total company sales fell to $785.8 million, missing Street estimates, from $859.9 million last year. Retail net sales decreased 7.3% to $712.4 million due to the impact of last year’s 53rd week, a 1.5% decline in retail comparable sales and a $12 million decrease in alteration and other services revenue largely resulting from the divestiture of MW Cleaners.
By brand, Men’s Wearhouse comparable sales decreased 3.2%. Jos. A. Bank comparable sales decreased 0.5%, and K&G comparable sales increased 0.9%. Moores comparable sales increased 2.8%.
“While all of our retail brands delivered positive comps for the full year, during the fourth quarter, comps at Men’s Wearhouse and Jos. A. Bank were down and this trend has continued into the first quarter of 2019,” said Tailored Brands executive chairman Dinesh Lathi. “We attribute the current softness to both the macro-environment as well as the need for us to execute more quickly and effectively on our core growth strategies: deliver personalized products and services, create inspiring and seamless experiences in and across every channel, and build brands that stand for something more than just price.”
For the first quarter, Tailored Brands expects adjusted earnings of 10 cents to 15 cents a share, well below the 51 cents a share analysts had been looking for.
Tailored Brands posted earnings of $6.2 million, or 12 cents a share, for the quarter ended Feb. 2, compared with a loss of $499,000, or 1 cent a share, in the year-ago period. Adjusting for a tax benefit, the company's adjusted loss was 28 cents a share. Analysts had forecast a loss of 29 cents.
Total company sales fell to $785.8 million, missing Street estimates, from $859.9 million last year. Retail net sales decreased 7.3% to $712.4 million due to the impact of last year’s 53rd week, a 1.5% decline in retail comparable sales and a $12 million decrease in alteration and other services revenue largely resulting from the divestiture of MW Cleaners.
By brand, Men’s Wearhouse comparable sales decreased 3.2%. Jos. A. Bank comparable sales decreased 0.5%, and K&G comparable sales increased 0.9%. Moores comparable sales increased 2.8%.
“While all of our retail brands delivered positive comps for the full year, during the fourth quarter, comps at Men’s Wearhouse and Jos. A. Bank were down and this trend has continued into the first quarter of 2019,” said Tailored Brands executive chairman Dinesh Lathi. “We attribute the current softness to both the macro-environment as well as the need for us to execute more quickly and effectively on our core growth strategies: deliver personalized products and services, create inspiring and seamless experiences in and across every channel, and build brands that stand for something more than just price.”
For the first quarter, Tailored Brands expects adjusted earnings of 10 cents to 15 cents a share, well below the 51 cents a share analysts had been looking for.