Tailored Brands Q1 revenue beats expectations
today Jun 13, 2019
California-based Tailored Brands reported on Wednesday first quarter revenue of $781.4 million, surpassing analyst expectations of $776.22 million despite results being down year-over-year.
The company’s total net sales were down 4.5 percent for the first quarter ended May 4, 2019.
The company’s brands gave performances that were all on the decline, with Men’s Wearhouse and Jos. A. Bank recording declines of 4.5 percent and 0.7 percent, respectively, in comparable sales, while K&G reported a slight comps decrease of 0.5 percent and Moores the highest decline of 4.6 percent.
Overall, the company’s comparable retail sales dropped 4 percent in the three-month period, while its corporate apparel division saw net sales tumble 10.1 percent, or $6.4 million, primarily due to lower replenishment demand in the U.S. as well as the impact of a weaker British pound this year compared to last year.
“While we are on a journey to evolve our business to more fully meet our customers’ needs and wants, we made good progress in the first quarter against our strategic initiatives,” said Tailored Brands President and CEO Dinesh Lathi, in a news statement.
Lathi also highlighted new brand campaigns for both Men’s Wearhouse and Jos A Bank, and other initiatives that’s helping the company evolve.
“Our custom business posted another strong quarter as we continued to respond to our customers’ demand for personalized products and services that help them look their best in the moments that matter. Our e-commerce team executed a robust portfolio of user experience and personalization tests, several of which have been pushed into production to increase conversion and average order values. Finally, as we seek an optimized creative mix between promotional and storytelling advertising and an enhanced channel mix between broadcast and digital, we launched new brand campaigns for both Men’s Wearhouse and Jos. A. Bank that are being leveraged across channels.”
Net earnings for the period were $7.1 million or $0.14 on a GAAP basis, compared to $13.9 million or $0.27 during the year-ago quarter.
For the second quarter of fiscal 2019, the company expects to achieve adjusted diluted EPS in the range of $0.65 to $0.70. Comparable sales are projected to drop between 2 percent and 4 percent at Jos. A. Bank and Moores, and 3 percent and 5 percent at Men’s Wearhouse, while at K&G, they are expected to remain flat or drop 2 percent.
Tailored Brands also expects to close seven stores during the quarter, primarily at Jos. A. Bank.
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