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

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Walgreens Boots Alliance set to report earnings next week. Here’s what to expect

Walgreens Boots Alliance, Inc. (NASDAQ: WBA), the drug store chain that is expanding into a diversified healthcare provider, is on a restructuring drive aimed at better aligning the business with

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