Tailored Brands, Inc, owner of Men’s Wearhouse and Jos.A. Bank, has announced consolidated financial results for the fiscal first quarter ended April 29, 2017.
On a GAAP basis, net earnings for the first quarter were $1.8 million compared to net earnings of $1.6 million for the same quarter last year. Diluted EPS was $0.04 compared to diluted EPS of $0.03 in last year’s first quarter. On an adjusted basis, net earnings for the first quarter were $13.3 million compared to net earnings of $13.9 million for the same quarter last year. Diluted EPS was $0.27 compared to diluted EPS of $0.29 in last year’s first quarter
Total net sales decreased 5.5 percent to $782.9 million. Retail segment net sales decreased by 5.3 percent due primarily to the impact of last year’s store closures as well as comparable sales declines. Corporate apparel segment net sales decreased 8 percent primarily due to unfavorable currency fluctuations partially offset by higher U.S. sales.
Comparable sales at Men’s Wearhouse decreased 3.2 percent Jos. A. Bank comparable sales increased 3.5 percent; K&G comparable sales decreased 7.4 percent, and Moores comparable sales decreased 5.3 percent.
“After a tough February, our first quarter comparable sales improved as the quarter progressed,” said Chief Executive Officer Doug Ewert. “We were pleased to have reached an agreement with Macy’s to wind down our tuxedo rental partnership, which eliminates the risk of extended future operating losses and enables us to focus on our rental business at Men’s Wearhouse, Jos. A. Bank and Moores. Moreover, we are gaining traction on our initiatives of engaging more customers across all channels, strengthening our omni-channel experience and increasing sales of custom clothing. These initiatives support our strategy to innovate the best men’s specialty store of the future by delighting our customers with an unmatched level of convenience, authority and personalization.”
The company reaffirmed its Fiscal 2017 year outlook. It achieve diluted earnings per share in the range of $1.37 to $1.67, and adjusted diluted earnings per share of $1.60 to $1.90. Further, it expects comparable sales for Men’s Wearhouse to be down low-single digits, Jos. A. Bank to increase mid-single digits, and Moores and K&G to be down mid-single digits.
The one significant change is that the now expects approximately net 20 store closures compared to its previous outlook of net 10 store closures, with the increase due to additional Jos. A. Bank store closures. As previously reported, Tailored Brands will close all 170 tuxedo shops at Macy’s in the second quarter.