Tailored Brands swings to loss on declining sales
Fremont, California-based menswear retailer Tailored Brands, Inc. announced a loss of $34.1 million, or $0.80 per diluted share, for the fourth quarter on Wednesday, as sales fell across the company’s portfolio and charges related to the sale of the Joseph Abboud brand took their toll. In the prior-year period, the company reported net income of $6.2 million, or $0.08 per diluted share.
For the fourth quarter ended February 1, 2020, Tailored Brands’ sales totaled $691.0 million, down 5.3% from $730.0 million in the same period in the previous year.
Sales fell 6.8% at the company’s Moores brand, 3.9% at Men’s Wearhouse and 2.8% at Jos. A. Bank. K&G also posted a smaller decrease of 0.3%.
These declines were further compounded by the negative effect of $22.7 million in charges related to the sale of the Joseph Abboud trademarks announced in January of this year, as well as to expenses resulting from the implementation of the company’s multi-year cost saving programs.
For the full fiscal year 2019, Tailored Brands reported a loss of $82.3 million, or earnings per diluted share of $0.51, compared to income of $83.2 million, or $1.94 per diluted share, in fiscal 2018.
Annual sales at the company totaled $2.36 billion, representing a 3.9% decrease from $2.45 billion in the previous year.
On Tuesday, Tailored Brands joined a growing list of U.S.-based retailers and announced the temporary closure of all of its stores until March 28 in order to combat the spread of the novel coronavirus Covid-19.
"We are confident in the long-term prospects of our business, despite the near-term disruption from Covid-19, because of the progress we made in 2019 to enhance our competitive positioning and how we show up for customers," commented Tailored Brands president Dinesh Lathi in a release on Wednesday.
"As we gain more visibility into macro-economic and business conditions, we plan to share more specifics on our financial outlook for fiscal 2020," he added
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