Menswear retailer Tailored Brands, which owns such brands as Men’s Wearhouse and Jos A. Bank, has reported another tough quarter.
For the second quarter of 2017, total net sales decreased 6.5 percent to $850.8 million. Retail net sales decreased by 4.5 percent primarily due to the impact of last year’s store closures, with comparable retail segment net sales up 0.1 percent. Corporate apparel net sales decreased 27.3 percent, in line with expectations, primarily due to last year’s rollout of a large new uniform program.
Comparable sales at Men’s Wearhouse decreased 2.2 percent. The decrease in comparable sales resulted primarily from a decrease in transactions and a slight decrease in units per transaction partially offset by an increase in average unit retail. Comparable rental services revenue decreased 2.1 percent.
Jos. A. Bank comparable sales increased 7.8 percent primarily due to an increase in transactions and units per transaction that more than offset a decrease in average unit retail. K&G comparable sales decreased 1.7 percent primarily due to lower transactions partially offset by an increase in units per transaction and average unit retail. And, Moores comparable sales increased 0.3 percent primarily due to increases in both average unit retail and transactions that more than offset a decrease in units per transaction.
“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 Doug Ewert, CEO of Tailored Brands. “That said, the retail environment remains challenging and therefore we have a cautious outlook for the second half of the year.”
Ewert added, “We are executing our plan to innovate the best men’s specialty retailer of the future. Our custom suit business continues to grow and exemplifies our unique ability to deliver exclusivity, personalization and fit at unsurpassed value and convenience. 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. In addition, we are reaching our customers across all channels to let them know what we stand for – helping men love how they look.”