Men's Wearhouse
by Brian Lipton

People pass by a Men's Wearhouse store in New York June 25, 2013. Men's Wearhouse Inc said it fired founder and Executive Chairman George Zimmer after he pushed to take the company private and effectively demanded to be reinstated as the sole decision maker at the clothing chain. REUTERS/Brendan McDermid (UNITED STATES - Tags: BUSINESS TEXTILE LOGO)

Tailored Brands, Inc. has provided preliminary comparable sales results for the fiscal fourth quarter ended January 30, 2016, as well as updated guidance regarding adjusted EPS for fiscal year 2015.  Actual fiscal fourth quarter results will be reported on March 9.

Comparable sales increased 4.3% at Men’s Wearhouse with clothing comps of 4.3% driven by an increase in average unit retail and tuxedo comps of 4.7%.  Jos. A. Bank comparable sales decreased 31.9% primarily due to a decline in average transactions per store K&G comparable sales increased 1.9% driven by units per transaction offset somewhat by lower average transactions per store. Moores comparable sales decreased 2.7% primarily driven by weakening macro-economic conditions in Canada.

Based on these preliminary results, the Company estimates that adjusted EPS for fiscal 2015 will be near the bottom of the previously announced guidance range of $1.75 to $2.00, excluding non-operating items and non-cash impairment charges.

As previously announced, Tailored Brands is in the midst of a comprehensive profit enhancement project for 2016 and beyond. This project includes a near term focus on right-sizing the store base and cost structure of its Jos. A. Bank business, a multi-year plan to restore brand health and sales at Jos. A. Bank, as well as a fresh look at re-engineering other parts of the Tailored Brands portfolio.

“While we are pleased that our Men’s Wearhouse, Moores and K&G brands continue to perform well, management has been, and continues to be, focused on creating long term sustainable and profitable results at Jos. A. Bank,” said Doug Ewert, chief executive officer of Tailored Brands.  “Although we have seen improvement since the holiday selling season, we are still not satisfied. We are taking actions to reduce costs and rationalize the store base. We have also identified opportunities and begun the work to improve efficiency with positive results in other areas of our portfolio.”