Categories AlphaGraphs, Earnings, Retail

Tailored Brands Q1 results top Street view; stock falls on weak guidance

Specialty apparel retailer Tailored Brands (NYSE: TLRD) reported lower sales and earnings for the first quarter of 2019, reflecting the continued slump in demand amid stiff competition. The results came in above Wall Street’s forecast. Meanwhile, the company’s stock fell sharply Wednesday evening after its guidance missed estimates.

Tailored Brands Q1 sales down 5%

First-quarter profit, adjusted for one-off items, decreased to $0.21 per share from $0.50 per share last year but surpassed analysts’ estimates and the company’s own guidance. On a reported basis, the company posted net income of $7.1 million or $0.14 per share, compared to $13.9 million or $0.27 per share in the first quarter of 2018.

There was a 3.2% decrease in retail comparable store sales during the three-month period. Consequently, net sales declined 4.5% annually to $781.4 million but exceeded the estimates. Corporate apparel net sales slipped 10%, hurt by lower replenishment demand in the local market and unfavorable exchange rate of the British pound compared to last year.

Adjusted profit decreased to $0.21 per share from $0.50 per share last year but surpassed analysts’ estimates

Tailored Brands CEO Dinesh Lathi said, “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. 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.”

Looking ahead, the company expects adjusted earnings to be in the range of $0.65 per share to $0.70 per share in the second quarter, which is below the consensus estimate. Corporate apparel net sales are expected to drop between 4% and 6%.

Also see: Tailored Brands Q4 2018 Earnings Conference Call Transcript

Comparable sales at Men’s Wearhouse are seen falling 3%-5% and those of Jos. A. Bank by 2%-4%. K&G same-store sales are expected to be down 2% to flat. Moores comparable sales are projected to decline in the 2%-4% range. The company expects to close down seven stores during the July quarter, primarily at Jos. A. Bank.

Shares of Tailored Brands fell about 60% since the beginning of the year and 78% in the past twelve months. The stock closed Wednesday’s regular session sharply lower and lost further after the earnings report.

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips

Most Popular

CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%

Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss

Key metrics from Nike’s (NKE) Q2 2025 earnings results

NIKE, Inc. (NYSE: NKE) reported total revenues of $12.4 billion for the second quarter of 2025, down 8% on a reported basis and down 9% on a currency-neutral basis. Net

FDX Earnings: FedEx Q2 2025 adjusted profit increases; revenue dips

Cargo giant FedEx Corporation (NYSE: FDX), which completed an organizational restructuring recently, announced financial results for the second quarter of 2025. Second-quarter earnings, excluding one-off items, were $4.05 per share,

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top