Obi Anyanwu
Sep 8, 2016
2 minutes
Tailored Brands sales fall slightly but meet expectations, reaffirms outlook
Obi Anyanwu
Sep 8, 2016
Tailored Brands on Wednesday reported its second quarter 2016 results, which was improvement compared to its first quarter of 2016. Men’s Wearhouse increased in comparable sales and Jos. A. Bank declined in comparable sales but remained in line with expectations.
Total net sales decreased 1.1% to $909.7 million, retail segment net sales decreased 3.4% and corporate apparel sales increased 30.0% to $18.3 million. Men’s Wearhouse net sales increased 2.7% and comparable sales increased 2.9%, Jos. A. Bank comparable sales decreased 16.3%. K&G comparable sales decreased 2.2% and Moores comparable sales decreased 4.9%.
Total gross margin decreased 2.0% to $410.3 million due to the decrease in retail segment net sales, SG&A expenses increased to $305.7 million, or 365 basis points, net earnings were $25.0 million compared to $47.8 million in the previous year and diluted earnings per share were $0.51 compared to $0.98 in the prior year.
The company also closed 86 stores, including 45 Jos. A. Bank factory stores and eight Men's Wearhouse outlet stores, during the second quarter and plan to close 250 stores during fiscal 2016.
"Our second quarter results showed improvement compared to the first quarter yet reflected a challenging retail apparel spending environment as well as the continued transitioning of our Jos. A. Bank business,” said Doug Ewert, President and Chief Executive Officer of Tailored Brands. "We continue to execute our transition plan for Tailored Brands and are on track to achieve our targeted $50 million of cost savings in fiscal 2016.”
For the first six months, Tailored Brands total net sales fell 3.7% to $1,738.5 million, total gross margin decreased 4.8% to $762.1 million and net earnings were $26.6 million compared to $58.1 million in the previous year.
The company maintains its full year adjusted EPS outlook of $1.55 to $1.85 per diluted share and remains positive on its long-term outlook.
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