Tailored Brands (NYSE: TLRD) shares were halted at 2:31 PM ET with the exchange citing “pending of material news” from the firm. At the time of trading halt, stock price surged about 6% to $7.17. When the trading resumed, the share price dwindled above 30% at 4:10 pm ET as the Q3 outlook fails to impress the street.
However, the second quarter earnings came ahead of estimates, while sales were in line with the consensus. The stock has plunged 70% in the last 12 months as the apparel retailer is facing headwinds due to shift in consumer trends. Last month, shares of the firm touched a new 52-week low of $4.21 mark after the sale of its corporate apparel business.
The board has decided to suspend the dividend payout from the fourth quarter. The company plans to deploy the cash for debt repayment and share repurchases. As a part of the suspension, the retailer expects to have $36.5 million annually, which can be used for intended purposes.
It’s worth noting that Tailored Brands has allocated $48 million for share repurchases under its previously authorized 2013 share repurchase program.
Below Par Outlook
For the third quarter, the company is guiding adjusted earnings of 40-45 cents per share as the sales is expected to be weaker across the board. The outlook is about 50% below the analyst estimates of 88 cents per share on sales of $763.7 million.
For the fiscal 2019 period, the street is anticipating top line of $3 billion and non-GAAP earnings of $1.66 per share.
Sales dropped 4.1% to $789 million while adjusted earnings decreased 23% to 82 cents. Retail comp-store sales continued its negative growth trend from the past two quarters. Same-store sales dropped 3.6% compared to a growth of 1.7% reported last year.
On the flip side, the street was expecting earnings of 74 cents per share on sales of $789 million.
In order to focus on its core business, last month Tailored Brands sold its corporate apparel division for $62 million. The retailer also raised its adjusted earnings guidance for the second quarter. For the Q2 period, non-GAAP EPS was expected in the range of 78-80 cents compared to the prior estimate of 65-70 cents per share.
In order to address the changing consumer trends, the company is focusing on offering customized offerings to its customers and improve shopping experience across all the channels.
Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per
Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus
Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000