Published
Sep 8, 2017
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Tailored Brands sales fall in Q2, reaffirms fiscal year outlook

Published
Sep 8, 2017

Tailored Brands reported on Thursday its second quarter results that included decreases in net sales and comparable sales.


Tailored Brands, Inc.

 
Total net sales for the quarter decreased 6.5% to $850.8 million, with retail net sales falling 4.5% due to store closures, and corporate apparel sales decreasing 27.3% as expected.
 
Men’s Wearhouse and K&G comparable sales both decreased 2.2% and 1.7%, respectively, while Jos. A. Bank and Moores comparable sales increased 7.8% and 0.3%, respectively.

"We were pleased that all brands posted sequential improvement in comparable sales on a one- and two-year stacked basis during the second quarter, which resulted in positive comparable sales for our retail segment as a whole,” said CEO Doug Ewert. “That said, the retail environment remains challenging and therefore we have a cautious outlook for the second half of the year.”
 
Gross margin for the quarter decreased to $396.7 million, primarily due to a decrease in corporate apparel net sales.
 
Year-to-date total company sales fell 6.0% to $1,633.7 million. Men’s Wearhouse comparable sales for the period decreased 2.6%, K&G fell 4.7% and Moores decreased 1.9%, while K&G comparable sales increased 5.7%.
 
"We are executing our plan to innovate the best men's specialty retailer of the future,” added Ewert. “We are advancing our omni-channel capabilities with new services such as guided shopping, which makes it easy for men to find the perfect look. 
 
Tailored Brands in September hired Frank Hamlin as Chief Marketing Officer and Boris Sherman as Chief Innovation Officer to spearhead these initiatives.
 
Ewert said, “We are reaching our customers across all channels to let them know what we stand for – helping men love how they look.”
 
For the fiscal year, Tailored Brands continues to expect comparable sales for Men’s Wearhouse to be down low-single digits, Jos. A. Bank to increase mid-single digits, and K&G to be down mid-single digits. The company updated its outlook for Moores and now expects comparable sales to be down low-single digits.

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