Jos. A Banks turns in troubling Q4 performance for Tailored Brands
Tailored Brands, formerly Men’s Wearhouse, vowed more changes after its Jos. A Bank division logged a 31.9% decline in same store sales.
The sharp drop in same store sales at Jos. A. Bank and other financial details were provided ahead of the company’s release on March 9 of results for the fourth quarter ended Jan. 30. Comparable sales increased 4.3% at Men's Wearhouse, following a 6.8% increase during the fourth quarter the prior year. K&G comparable sales increased 1.9% driven by units per transaction offset somewhat by lower average transactions per store. Moores comparable sales decreased 2.7% primarily driven by weakening macro-economic conditions in Canada.
Based on the preliminary results, the company said its full year earnings per share would be near the bottom of a previously announced guidance range of $1.75 to $2.00.
"While we are pleased that our Men's Wearhouse, Moores and K&G brands continue to perform well, management has been, and continues to be, focused on creating long term sustainable and profitable results at Jos. A. Bank,” Doug Ewert, CEO of Tailored Brands. “Although we have seen improvement since the holiday selling season, we are still not satisfied. We are taking actions to reduce costs and rationalize the store base. We have also identified opportunities and begun the work to improve efficiency with positive results in other areas of our portfolio.”
Ewert said more details will be shared when the company reports fourth quarter and full year results after the market closes on March 9 and during a conference call held the following morning.
Tailored Brands has previously said it is in the midst of a comprehensive profit enhancement project for 2016 and beyond. The project includes a near term focus on right-sizing the store base and cost structure of its Jos. A. Bank business, a multi-year plan to restore brand health and sales at Jos. A. Bank, as well as a fresh look at re-engineering other parts of the Tailored Brands portfolio.